Lending Watchdog Seeks Vigilance by AGs

Following a move by New York Attorney General Eliot Spitzer, Inner City Press/Fair Finance Watch is calling on more than 30 state attorneys general to take action against lenders who have shown evidence of discriminatory lending practices.The industry watchdog said it recently completed a study showing that 12 of the nation's largest lenders "are to varying degrees disparate by race in distributing high-cost loans." ICP reviewed the 2004 Home Mortgage Disclosure Act data in which it compared not only denial rates but also new information concerning which loans are subject to a rate spread. "It's obviously not just a New York problem," said Matthew Lee, executive director of ICP. "The danger here is most of these lenders claim to have best practices in place. But the data is quantifiable. We're not dealing with anecdotes here." Mr. Lee said the group wants the AGs to take lenders to court and get a commitment to reduce the lending disparities.