WASHINGTON,
D.C. – U.S. Representatives Jan Schakowsky (D-IL) and Maxine Waters (D-CA)
today called for Congressional hearings following the release of a report
which found that African American and Latino borrowers are disproportionately
denied mortgage loans. The Association of Community Organizations
for Reform Now (ACORN) prepared the study.
Schakowsky
and Waters, who are members of the House Financial Services Subcommittee
on Housing and Community Opportunity, today requested an immediate hearing
in a letter to the Subcommittee Chair Marge Roukema. Below is the
letter to the Chairwoman.
October
4, 2001
The
Honorable Marge Roukema
Chairwoman
Financial
Services Subcommittee on
Housing
and Community Opportunity
2129
Rayburn House Office Building
Dear
Chairwoman Roukema:
We are writing to you today to request a hearing because we are concerned
that the racial mortgage gap is widening. According to a study conducted
by the Association of Community Organizations for Reform Now (ACORN), African
American and Latino borrowers are disproportionately denied access to capital.
Among the findings reported:
-
African
Americans were more than twice as likely to be turned down for a conventional
mortgage than white applicants, while Latinos were rejected one and a half
more times than whites;
-
African
Americans in Chicago and Milwaukee were four times more likely to be rejected
for a conventional loan than white perspective homebuyers; and
-
Upper-income
African Americans were more often rejected for a loan than white applicants
with half the income level.
We
disagree with a representative of many top lending institutions that the
ACORN report is misleading and that “you can’t allege there is discrimination
merely because one racial or ethnic group might be denied credit more frequently.”
We
hope that you share our concern and will consider holding a hearing on
this subject as soon as possible. We appreciate your consideration
and look forward to your response.
Sincerely,
Jan Schakowsky
Maxine Waters
Member of Congress
Member of Congress |