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CENTEX DENIES REDLINING ALLEGATIONS

 DALLAS, Aug. 12 /PRNewswire/ -- CTX Mortgage Company, responding to a published study by Essential Information, a Nader-founded interest group, denied today that the company engages in discriminatory lending practices. The report alleged that 49 mortgage companies, including CTX, have engaged in racial redlining activity. CTX said it was unaware of the group and had never been contacted in regards to the study.
 CTX noted that the published survey of loans made in calendar 1991 was based strictly on computer analysis rather than on consumer complaints. The company affirmed that it does not engage in redlining or in any other discriminatory practices in its mortgage lending operations. CTX said it complies fully with all federal and state Fair Lending laws.
 CTX also said that because a significant part of its business is generated by its sister home building company and other companies which build new homes primarily in suburban communities, its mortgage lending activity would be weighted toward the issuance of mortgages in those areas. CTX is particularly active in serving the new-home markets in Dallas and in Houston, the cities specifically mentioned in the report.
 CTX Mortgage also stated that, recognizing its community responsibilities, the company has already voluntarily initiated a program to increase its lending in all communities including promoting FNMA's Community Home Buyers' Program which targets low to medium income families. CTX also has begun to incentivize its loan officers to solicit loans from members of minority groups. In addition, CTX said that as part of the program, it will increase the training of its loan officers to understand the home mortgage credit needs of the minority communities it serves, is working to establish relationships with minority builders and Realtors and is counseling minority groups about available loan programs.
 CTX Mortgage is a subsidiary of Dallas-based Centex Corporation (NYSE: CTX). In addition to its Mortgage Banking business, Centex is the nation's largest single-family home builder and also has operations in Contracting and Construction Services, Construction Products and Savings and Loan.
 -0- 8/12/93
 /CONTACT: James H. Graass, counsel, CTX Mortgage Company, or Sheila E. Gallagher, vice president -- corporate communications, Centex Corporation, both at 214-559-6500/
 (CTX)


CO: CTX Mortgage Company ST: Texas IN: FIN SU:

LD -- NY086 -- 2304 08/12/93 17:16 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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