jsilver at essential.org
01-08-1999, 04:43 PM
Dear Friends:
The National Community Reinvestment Coalition produced a study examining
home purchase lending in the nation as a whole and in the largest 20
metropolitan areas. We documented that lending to minorities and low- and
moderate-income borrowers surged from 1990 to 1997. In 1990, low- and
moderate-income borrowers received 18 percent of all home purchase loans
made nationwide. In 1997, they received 28 percent of all loans. The
increase for Blacks and Hispanics was from 10 percent to 14 percent.
The biggest spike was from around 1992 to 1994. CRA ratings became public
in 1990 for the first time. Not long after, a big increase in lending
occured.
Community group participation in the CRA exam and merger application
process also increased dramatically. In 1990, NCRC had 15 members. In
1998, we now have 680.
Granted there were other factors such as economic cycles that contributed
to the increase in lending to underserved people. However, where it not
for CRA and community activism, the increase in lending to traditionally
underserved people would not have been as great.
Increasing access to the American Dream of Homeownership. I can't see how
the opponents of CRA could consider that a bad thing.
Have a good weekend.
Josh Silver
NCRC Vice President of Research and Policy
This post transferred from the cdb-l mailing list
The National Community Reinvestment Coalition produced a study examining
home purchase lending in the nation as a whole and in the largest 20
metropolitan areas. We documented that lending to minorities and low- and
moderate-income borrowers surged from 1990 to 1997. In 1990, low- and
moderate-income borrowers received 18 percent of all home purchase loans
made nationwide. In 1997, they received 28 percent of all loans. The
increase for Blacks and Hispanics was from 10 percent to 14 percent.
The biggest spike was from around 1992 to 1994. CRA ratings became public
in 1990 for the first time. Not long after, a big increase in lending
occured.
Community group participation in the CRA exam and merger application
process also increased dramatically. In 1990, NCRC had 15 members. In
1998, we now have 680.
Granted there were other factors such as economic cycles that contributed
to the increase in lending to underserved people. However, where it not
for CRA and community activism, the increase in lending to traditionally
underserved people would not have been as great.
Increasing access to the American Dream of Homeownership. I can't see how
the opponents of CRA could consider that a bad thing.
Have a good weekend.
Josh Silver
NCRC Vice President of Research and Policy
This post transferred from the cdb-l mailing list