06/17/1992 Meeting - Laserfiche WebLink

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e some impediments to making loans are due to societal problems, such as timber worker layoffs and Ballot Measure 5. Mr. Brawner said that the Home Mortgage Disclosure Act (HMDA) data in the report is out of date and does not provide an accurate conception of the en- tire situation, although it does provide a good overall picture. He stated that the percentage of loans made to individuals with low incomes is higher in Oregon than the national average. He added that there have been two 2038 loans made in lane County, and three are in progress. Mayor Miller arrived. Mr. Boles introduced Richard Guske, Vice Chair of the Community Reinvestment Task Force. Mr. Guske stressed that lenders have a commitment and an obliga- tion to provide loans to individuals with low income and to small businesses, and that these obligations have been defined by overseers of the lending in- stitutions. He said that CRA legislation arose because of the perception that lenders are not meeting the needs of individuals with low income and small businesses, and noted that more strict enforcement of these obligations is necessary. He compared the cooperative lending model with the intervention model. He said that the cooperative model identifies needs and suggests re- sponses. Mr. Guske distributed examples of the two kinds of contracts, as well as an outline of a previous presentation he had given on this topic. John Tamulonis, City of Springfield, said that although the HMDA data may be slightly out of date, it is the best data available. He said that Eugene e averages 1 loan denial for every 13 approvals to individuals with low incomes. Similarly, Springfield averages 1 denial for every 8 approvals. He added that in one section of Springfield, the denial rate is 1 for every 6 approvals. He said that this may be due to the older homes in the area or other factors. In summary, he said that the data provides information about where the City should focus its efforts. Mr. Tamulonis explained that banks receive informa- tion by census tract, but that the Federal Reserve is reluctant to reveal geographical locations of loans that were approved and denied. Mr. Boles commented that CRA accreditation occurs at the Federal level. He suggested that the City Council develop strategies whereby lending institu- tions could indicate their progress in certain areas. He said that the lend- ing community could provide a report of that progress after six months. Mr. Sullivan suggested that staff could work with area lenders and report back to the council after six months. Ms. Ehrman was concerned that six months may not be adequate time. Mr. Boles explained that six months should be enough time for lending institutions to begin organizational and formation efforts. In response to a question from Ms. Ehrman, John Vanlandingham, task force member, said that the early history with Network for Oregon Affordable Housing is favorable, although lately, the results differ depending on the lending institution. e MINUTES--Eugene City Council June 17, 1992 Page 3 11:30 Work Session