Blacks, Latinos Denied Access to Home Loans, Report Says

WASHINGTON — Blacks and Latinos are denied mortgages more often than whites, the Mortgage Bankers Assn. of America said today in announcing plans to combat racial inequality.

“Many minority neighborhoods are not adequately served by the industry, and members of minority groups may not get equal treatment at the earliest stages of the mortgage process,” the association said.

The report said, however, that one reason for the more frequent denials may be technical rather than racial. “Many mortgage companies interpret secondary market and insurance guidelines conservatively because of concerns about having to repurchase loans or indemnify government agencies against loss,” the report said.

In an effort to improve lending to minorities, the mortgage bankers group approved a set of guidelines to promote “equal opportunity in the housing finance system.”

“Our industry must embrace, without compromise, the goal of fair lending to all,” said Angelo Mozilo, president of the association and vice chairman of Countrywide Credit Industries.

The new guidelines urge mortgage companies to review applications that have been rejected “to ensure that all relevant factors and options have been considered, and that bias played no role in the decision,” the association said.

In addition, the association is establishing a training program to familiarize loan officers, underwriters and other people in the mortgage industry with federal fair housing laws.