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PHILADELPHIA BANKERS BUCK THE TREND; SET ALL-TIME RECORD PROVIDING HOME MORTGAGE LOANS TO LOW- AND MODERATE-INCOME COMMUNITIES

 PHILADELPHIA, Feb. 10 /PRNewswire/ -- The Delaware Valley Mortgage Plan announced today that it set an all-time record providing home mortgage loans to low- and moderate-income families in 1992, making $43.1 million in home mortgage loans to nearly 1,300 families.
 The results, revealed today at a news conference by the eight major Philadelphia financial institutions comprising the Plan, represent an increase of 32 percent in the number of mortgages over the prior year.
 The majority of Plan loans -- 59 percent -- were made to non-white families, demonstrating the Plan's continued commitment to low-income homebuyers purchasing lower-priced homes. A Federal Reserve Bank of Philadelphia study, released in February 1992, showed consistent lending patterns among Plan banks across minority and non-minority census tracks (Working Paper No. 92-3, "The Delaware Valley Mortgage Plan: An Analysis Using HMDA Data"). In 1992, the average Plan loan was $27,000 in Philadelphia, $33,000 in the city of Chester and $62,000 in the suburbs. Low- and moderate-income families also benefited from 163 refinances totaling $5.9 million.
 The increase in loans made by the Plan in 1992 exceeded last year's record of $24.4 million in mortgages to 978 low- and moderate-income families. Most loans (80 percent) were made in Philadelphia; 20 percent went to families in Bucks, Chester, Delaware and Montgomery counties.
 "By making homeownership a reality, banks are helping to strengthen the communities we serve," said Paul S. Beideman, senior vice-president, Mellon PSFS, and chair of the Plan's executive committee. "By working with community groups, we can adapt our products to best meet the needs of low- and moderate-income families."
 Launched in 1974 -- prior to the enactment of the Community Reinvestment Act -- the Delaware Valley Mortgage Plan has provided nearly 16,500 families with $270 million in home mortgages. Due to its success in the Philadelphia region, the Plan is now becoming a national model. In New York City, it is being replicated by the New York Mortgage Coalition.
 In response to a growing number of requests for information about the Plan from other cities, Frederick C. Frank III, executive vice- president, PNC Bank, and incoming chair of the Plan's executive committee, announced that a seminar will be held this spring for lending groups throughout the country. The all-day workshop will take place on April 23, at Fidelity Bank, in Philadelphia, featuring presentations from senior bank executives, mortgage lenders and underwriters associated with the Plan. For more information, call 215-977-7526.
 At the news conference, Ernest E. Jones, executive director of the nonprofit agency that operates the Plan, the Greater Philadelphia Urban Affairs Coalition, credited the success of the Plan to several unique aspects, including: flexible underwriting standards, collaboration with community-based organizations that provide counseling to potential borrowers, creative marketing of small mortgage loan opportunities to low- and moderate-income communities, and a peer review process that increases loan approval rates.
 "Philadelphia leads the nation when it comes to lending in low- and moderate-income communities, and the Delaware Valley Mortgage Plan is the reason why," said Jones. "Long before it was the thing to do, this unique program recognized the fact that there were female heads of household deserving of homeownership. And it accepted welfare as a form of income."
 Originally chartered in 1975 as the Philadelphia Mortgage Plan, the Plan was created to stem the tide of neighborhood deterioration and provide homeownership opportunities in areas of Philadelphia where lack of investment had contributed to the decline of safe, affordable housing. The Plan's eight member banks are: Beneficial Savings, Continental, CoreStates, Fidelity, Germantown Savings, Mellon PSFS, Meridian and PNC Bank.
 /delval/
 -0- 2/10/93
 /CONTACT: Robin Robinowitz of the Greater Philadelphia Urban Affairs Coalition, 215-545-4861, or evenings, 215-438-4832, or Jim Dever of Mellon PSFS, 215-553-4684/


CO: Greater Philadelphia Urban Affairs Coalition; Delaware Valley
 Mortgage Plan ST: Pennsylvania IN: FIN SU:


MP-CC -- PH022 -- 5218 02/10/93 13:54 EST
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Date:Feb 10, 1993
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