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