New data from the ""Home Mortgage Disclosure Act's"":http://www.ffiec.gov/hmda/ annual survey indicates positive moves for minorities. The recently released statistics from its 2010 study examining lenders handling of minority borrowers throughout the mortgage landscape shows a 5 percent decrease year-over-year in lending discrepancies targeting individuals in the sector.[IMAGE]
""TruPoint Partners"":http://www.trupointpartners.com/ evaluated the HMDA reports, and the company observed a continued pattern of elevated denial rates for minority borrowers, but the gap between the data's subject groups - non-Hispanic white males versus minority applicants - appears to be closing steadily. Currently, the comparative rates of denial for mortgages initiated by the segments stand at[COLUMN_BREAK]
19.66 percent for minorities and 14.40 percent for non-Hispanic white males.
To conduct its look at fair lending, TruPoint examined cases related to price discrimination, which is defined as higher rates and fees levied on minority borrowers, and denials, which are categorized as a failure to provide credit. TruPoint's method includes a free fair lending comparison report for HMDA entities to help lenders filing with the HDMA avoid disparity.
The HMDA numbers also revealed expected trends including a 13 percent drop in application volume and 12 percent decline in originations year-over-year, according to TruPoint. Trey Sullivan, CEO of TruPoint, commented on the findings, saying, ""Lenders acknowledge that fair lending is an ethical imperative as well as a regulatory mandate. Passing fair lending examinations are not optional. ├âÔÇÜ├é┬áNegative outcomes can compromise reputation and impact growth. ├âÔÇÜ├é┬áWith the release of 2010 HMDA data, compliance officers are empowered to run comparisons on a national and local level. Application, origination, denial, and pricing analysis can be performed for each financial institution and compared to others within their peer group.""
TruPoint is a provider of independent consulting and analytics for diverse financial institutions. The company services more than 500 community based lenders, helping clients focus on cost reduction, risk management, and growth.