Discrimination in Lending Market 2012 Northeast Fair Housing Conference Thursday, March 15, 2012.

Discrimination in Lending Market2012 Northeast Fair Housing Conference

Thursday, March 15, 2012

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Mission:

The Fair Housing Resource Center (FHRC), Inc. is a non-profit t 501(c)3 organization that offers several housing programs that benefit residents of Lake County, Ohio. The mission of Fair Housing Resource Center is to promote equal housing opportunities for all persons and to advocate for fair housing and diversity in Lake County and surrounding communities through the education and involvement of the public, the governments, and the business community.

Fair Housing Resource Center, Inc.

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Lending Initiatives:•Conducted lending tests throughout the Tri-County area of Lake, Geauga and Ashtabula Counties;•Subcontracted the research and data analysis to Housing Research and Advocacy Center, Inc. to have lending Factbooks prepared on the Tri- County area; and •Commissioned to have State of Fair Housing Reports prepared on the Tri-County area.

Fair Housing Resource Center, Inc.

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African Americans in Lake, Geauga and Ashtabula County are denied mortgage loans more often than whites, and when they obtain loans, are more likely to receive high-cost subprime loans than whites.

Results

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Lake County Lending Factbook Data

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Lake County Lending Factbook Data

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Lake County Lending Factbook Data

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Lake County Lending Factbook Data

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Geauga County Lending Factbook Data

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Geauga County Lending Factbook Data

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Ashtabula County Lending Factbook Data

Lending Factbooks Conclusion

• From the onset of all of the lending factbook, racial disparities in mortgage loan application denial rates were found;

• Rates of high-cost lending tactics revealed similar racial disparities;

• Countrywide (Bank of America) was the leading lender within the Tri-County area and their statistics also revealed racial disparities; and

• Refinance options also revealed racial disparities.

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Overall Conclusion

Based on the lending factbook data and FHRC’s systematic lending audits, FHRC has determined that there is still a need for enforcement, education and outreach in regards to lending issues within the Tri-County area.

If you have any questions regarding any lending issues, please feel free to contact FHRC at (440) 392-0147 [email protected].

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