Governor Hochul Pronounces Findings of Division of Monetary Companies Redlining Report for Lengthy Island, Rochester and Syracuse
Financial Service

Governor Hochul Pronounces Findings of Division of Monetary Companies Redlining Report for Lengthy Island, Rochester and Syracuse

Governor Kathy Hochul right this moment introduced a brand new report from the Division of Monetary Companies that illuminates continued racial disparities in mortgage lending practices on Lengthy Island, in Rochester and in Syracuse as a part of an ongoing statewide inquiry into redlining. The announcement follows a beforehand revealed Division of Monetary Companies report that recognized redlining and different types of housing discrimination by mortgage lenders, significantly non-depository lenders, in majority-minority neighborhoods in Buffalo.

“This report sheds a light-weight on the limitations that communities of colour, who’ve traditionally confronted discrimination when searching for a mortgage, proceed to face in the case of making the dream of homeownership a actuality,” Governor Hochul mentioned. “With our state within the midst of a housing disaster, practices like redlining not solely limit New Yorkers’ entry to homeownership, but additionally threaten affordability statewide. My administration stays dedicated to combatting housing discrimination in New York State and exploring options, just like the growth of the Group Reinvestment Act, to make sure that the trail to homeownership is obtainable to all.”

Division of Monetary Companies Superintendent Adrienne A. Harris mentioned, “Communities of colour proceed to face discrimination and limitations in attaining the dream of homeownership. I’m dedicated to making sure that every one lenders serve their complete group, as a result of equal entry to inexpensive credit score is a key not simply to homeownership, however to creating generational wealth and actually addressing inequality.”

The Division of Monetary Companies beforehand issued a report figuring out redlining within the Buffalo metropolitan space and the end result of a associated enforcement motion. The Division of Monetary Companies’ inquiry into mortgage lending within the Syracuse and Rochester metropolitan areas and in Nassau and Suffolk counties once more revealed a persistent lack of lending to folks of colour and in majority-minority neighborhoods.

The Division of Monetary Companies analyzed House Mortgage Disclosure Act knowledge and located:

  • In Nassau county, the place the inhabitants is 41.8 % non-white, on common, lenders make 34.27 % of their loans to debtors figuring out as folks of colour. Amongst lenders working within the county, lending to debtors figuring out as folks of colour ranges from 14.9 % to 50.22 %.
  • In Suffolk county, the place the inhabitants is 33.7 % non-white, on common, lenders make 21.86 % of their loans to debtors figuring out as folks of colour. Amongst lenders working within the county, lending to debtors figuring out as folks of colour ranges from 13.07 % to 36.85 %.
  • Within the Rochester metro space, the place 23.9 % of the inhabitants is non-white, on common lenders make 11.32 % of their loans to debtors figuring out as folks of colour, lower than half of what can be anticipated primarily based solely on inhabitants make-up.
  • Equally, within the Syracuse metro space, 18.7 % of the inhabitants is non-white, however on common lenders make 8.67 % of their loans to debtors figuring out as folks of colour.

The report comprises particulars of particular person establishments’ efficiency in lending in majority-minority neighborhoods and to debtors figuring out as members of a minority group, in addition to maps of lending exercise within the cities.

Though the Division of Monetary Companies inquiry didn’t discover honest lending regulation violations, two mortgage lenders,1st Precedence Mortgage, Inc. and Premium Mortgage Company have agreed to reform lending practices and implement applications to make sure higher entry to traditionally underserved communities in Western and Central New York. These mortgage lenders originate lots of of mortgages yearly in Rochester, Syracuse, and Buffalo. The Division of Monetary Companies investigations into different lenders in Buffalo, Rochester, Syracuse and Lengthy Island are ongoing.

The Division is at present creating laws to implement the up to date New York Group Reinvestment Act which expands oversight to non-depository mortgage lenders working within the state. The insights uncovered by way of these redlining research and investigations will likely be mirrored in these proposed laws which will likely be revealed for public remark in 2023.

At present’s bulletins are a part of an ongoing statewide effort to fight housing discrimination. In August, Governor Hochul and Lawyer Common Letitia James introduced settlements with three actual property brokerages totaling greater than $115,000, along with requiring honest housing trainings, for discriminating towards homebuyers of colour. And in December 2021, Governor Hochul signed a sweeping legislative package deal of 9 payments to handle many points recognized in an investigative report by Newsday, which explored discrimination and each specific and implicit bias that exists in the true property business. The payments included the Anti-Discrimination in Housing Fund that allows the state to conduct honest housing testing. The payments additionally elevated coaching and most fines for misconduct by actual property brokers and salespersons.