PCRG’s 20th Annual Mortgage Lending Study highlighted the importance—and lack—of local bank lending in minority communities. These neighborhoods experienced longer and steeper declines in loan originations during the Great Recession, followed by a slower recovery, contributing to the disproportionate loss of wealth among minorities between 2008 and 2012.
Today, mortgage lending in Allegheny County minority Census tracts is stuck at just over half of 2005 levels. Denial rates in LMI and minority Census tracts in 2012 were twice as high as in non-LMI and majority white Census tracts. However, there are bright spots locally, and PCRG’s findings are making their way to Federal Regulators.
Dollar Bank, winner of PCRG’s 2014 Minority Lending Award, made more home-purchase loans in minority communities than any other local bank, for every one of the eight years covered by the Mortgage Lending Study (2005-2012).
Additionally, Dollar Bank is using our Mortgage Lending Study to demonstrate their record of equitable lending to regulators.
Fair lending is a significant issue for our Bank and is central to our position as a mutual institution. The information in the PCRG Mortgage Lending Study illustrates that lending to all communities in Pittsburgh is a priority for us. It is very useful in demonstrating the Bank’s performance to financial regulators and in understanding how our efforts compare with other lenders.”
-Robert P. Oeler, President and CEO of Dollar Bank
The full version of the 20th Annual Mortgage Lending Study can be found here. For more information on PCRG’s Lending Study, contact Rachel Rue, PCRG’s Research Analyst, at email@example.com or (412) 391-6732 ext. 202.