Agenda - 04-15-2008-3d - Laserfiche WebLink

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Orange County, North Carolina - AIFCH - 2007 However, not all data are available for all geographies. Iriformation in all of the tables related to lending throughout this analysis is compiled from the HMDA unless otherwise noted. HMDA data includes statistics for applications by White, Black, Hispanic, American Indian, Asian and Other Race borrowers. No analysis was performed on categories representing less than 3% of the total mortgage activity. Census tract income and applicant income data are based on median household income ($29,046) and are defined according to U.S. Department of Housing and Urban Development (HUD) criteria: Low Income - <50% of median household income Moderate Income - >=50% -< 80% of median household income Middle Income - >=80% - <100% Middle Income - >=100% - <120%* Upper Income - >=120% of median household income * This "split" reflects how the HMDA is reported. Our analysis of racial equity looks at both origination yields and denial rates. Traditionally, many CRA studies have utilized denial rates or Black/White disparity ratios as the prime indicator of lending performance. This report focuses on loans originated and loans denied. Since both are significant, we look at what a lender did as well as what a lender did not do. There are also philosophical reasons for giving at least as much attention to those loans which were made as contrasted with those which were not. In this study, philosophical and methodological reasons both point in the direction of giving greater emphasis to lenders' performance on mortgage loan originations than on mortgage loan denials. 6.5 Mortgage Activity in Orange County From the late 1990's, a very strong economy extended employment and boosted income for many Americans. Orange County was not immune to these trends. For most of this period, mortgage interest rates were quite low and have continued to be low even though the economy has slowed down. These positive economic trends provided a favorable environment for households to secure and refinance home loans because they gave consumers a positive sense of job security, income-growth, and the ability to afford credit. Access to mortgage credit enables residents to own their homes, and access to home improvement loans allows them to keep older houses in good condition. All of these help keep neighborhoods attractive and residents vested in their community16. The physical presence of financial institutions in communities facilitates relationships with banks. Location is the primary concern for a community. Areas that are left without branches, or with only access to ATM 15