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SURVEY SHOWS MAJOR BANKING COMMITMENT TO HOME LENDING TO MINORITIES AND LOW- TO MODERATE-INCOME GROUPS

SURVEY SHOWS MAJOR BANKING COMMITMENT TO HOME LENDING TO MINORITIES
 AND LOW- TO MODERATE-INCOME GROUPS
 ARLINGTON, Va., Oct. 27 /PRNewswire/ -- Banks have made a major commitment to affordable mortgage programs and related efforts to increase mortgage lending to minorities and low- to moderate-income consumers, according to a survey scheduled for release at 10 a.m., Wednesday, Oct. 28, at the National Press Club by the Consumer Bankers Association.
 The survey, which reviews programs at 140 large and medium banks, thrifts and holding companies, shows that 91.4 percent have programs to increase mortgage lending to those groups. The most common program is a mortgage product with substantially more flexible underwriting criteria than convention loans, according to CBA President Joe Belew.
 In addition, the large majority of banks now provide automatic reviews of mortgage loan rejections, have stepped up marketing to minorities and low- to moderate-income communities, offer credit counseling, and are giving employees sensitivity training, all in order to reduce the disparity in loan approval rates, Belew said.
 "These programs, while relatively new, are growing at a rapid rate. Banks that provided data for both the first six months of 1992 and for 1991 show a greatly accelerating volume of loan approvals," Belew said.
 "The survey gives a more up-to-date and complete picture of the banking industry's efforts to better serve these markets than does 1991 mortgage data," Belew said.
 "Release of the 1990 Home Mortgage Disclosure Act data late last year showed the industry that more needs to be done to serve the minority and low- to moderate-income markets. In fact, the industry has responded in a major way. Unfortunately, much of the results are not captured by the 1991 HMDA data, because the programs are too new, impaired by the recession and possibly distorted by the surge of conventional mortgage refinancing," he said.
 The Consumer Bankers Association was founded in 1919 to provide a progressive voice for the retail banking industry. CBA represents approximately 700 federally insured bank and thrift institutions that hold more than 80 percent of all consumer deposits and more than 70 percent of all consumer credit held by federally insured depository institutions.
 -0- 10/27/92
 /CONTACT: Fritz Elmendorf, 703-276-3879, or Karin Chura, 703-276-3880, both of the Consumer Bankers Association/ CO: Consumer Bankers Association ST: Virginia IN: FIN SU:


KD -- DC007 -- 5359 10/27/92 11:36 EST
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Publication:PR Newswire
Date:Oct 27, 1992
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