Second Opinion : THE EASTSIDE SUN : Glimmer of Good News in Minority Homeowning

Federal regulators have announced that home loans to Hispanics, Blacks, Asians, and Native Americans soared during the past year. The Federal Reserve Board released a report July 18 that shows the number of conventional mortgages for blacks rose by 55% from the previous year, by 42% for Hispanics, 24% for Native Americans and 19% for Asians.

Applications from minorities for loans rose sharply resulting in higher numbers of loans granted to minorities.

One probable reason for the higher loan numbers is the fact that banks have been prodded into doing greater outreach into minority communities by the Clinton Administration, resulting in an awareness in these communities of the availability of loans and other services.

In addition, consumer groups such as the National Re-investment Coalition and local minority business and professional groups have been able to bring greater public awareness to the fact that banks have an obligation to market to every segment of a community, including those on the low end of the economic ladder because of the Community Reinvestment Act and fair housing laws. The CRA requires banks to report outcomes of loan applications.

It is our hope that banks are now aware of the enormous market and growth potentials that exist in many communities, which up to now they have ignored due to stereotypical and institutional cultural biases that are no longer relevant in today’s society.

From an editorial in the Eastside Sun, an English-language Latino weekly published Thursdays in Los Angeles.