Lenders' ability to offer more-flexible loan products has made increased minority homeownership possible, and curbing such programs would be counterproductive, according to James Ballentine of the American Bankers Association.In a speech June 15 at the ABA Regulatory Compliance Conference, Mr. Ballentine cited reports based on Home Mortgage Disclosure Act data that show a connection between risk-based pricing and higher rates of minority homeownership. "Risk-based pricing and flexible loan contracts have created more access to credit, but limiting these programs would damage the very borrowers that fair-lending statutes were intended to help," said Mr. Ballentine, director of grassroots and community outreach for the ABA. He cited a recent white paper by Michael Staten, a Georgetown University professor, that found a link between the emergence of the subprime market in the 1990s and the rise in the homeownership rate. Mr. Ballentine said statistics from the Federal Financial Institutions Examination Council indicate that from 1993 to 2003, home mortgages rose 357% for Hispanics, 206% for African-Americans, and 192% for Asians. The ABA can be found online at http://www.aba.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
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