ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release September 13, 2005 #05-64
E-mail: [email protected]

ACB STATEMENT ON RELEASE OF HMDA DATA

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

Statement by ACB President and CEO Diane Casey-Landry on today’s release of Home Mortgage Disclosure Act data by the Federal Reserve:

The Fed’s report on HMDA will once again generate discussion about how credit is being provided in this nation. In reviewing the Fed’s analysis, it’s important to keep in mind the environment in which these data have been reported. Today we have a record homeownership rate with more Americans owning their own home than ever before. And much of the growth in homeownership is taking placing among minorities. Nevertheless, more needs to be done to decrease the disparity between minority and white homeownership rates.

As the Fed pointed out, risk-based pricing has greatly expanded the availability of home loans to borrowers. The Fed notes that 19 percent of all home-loan originations in 2004 were subprime, compared to only 5 percent in 1994. While the overwhelming majority of ACB members are not in the subprime market, it is clear that responsible subprime lending is an important part of the marketplace. It would be inaccurate and misleading to selectively use raw data out of context and discourage any lenders from participating in the very market segment that needs the most assistance.

America’s Community Bankers is committed to continuing to reach out to all Americans to assist them in achieving the dream of homeownership. We will continue to promote financial literacy and to provide materials that will help to educate and inform consumers and to assist them in making the right choices to meet their credit needs.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-