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

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. Orange County, North Carolina - AIFCH - 2007 income (80% or less of median household income}. According to the 2000 U.S. Census, Orange County's Median Household Income was $29,046. Low-to-moderate income was at $23,236 or less. The HMDA database for lenders provides an income breakdown of mortgage loan applicants at the application, origination, denial stages, allowing the Consultant to assess which lenders have been most successful in servicing the mortgage credit needs of low-to-moderate income households. All lenders combined for 26.7% of the low-to-moderate income market share in the MSA. As with applications by race, local lenders were poorly represented. Capital Bank had 36.1 (22) of low-to-moderate income applications, the largest percentage of any local lender. RBC Centura was second with '22.8% (21). BB&T was the smallest lender in terms of low-to- moderate income applications with 5% on just four applications. Comparing lenders in terms of originations from low-to-moderate income applicants and upper- income applicants, shows a 56.8% average for low-to-moderate income applicants in the MSA, and 82% for upper-income applicants. This is expected since upper-income applicants would typically be more qualified. ° Almost 57% of applications from low-to-moderate income residents were originated, showing that one out of every two applications is successful. Seven of the nine local lenders had origination rates for low-to-moderate income applicants over 60%. Local lenders seem to be reaching out to low-to-moderate income applicants. However, the fact that five of the local lenders had single-digit applications from this income group is a concern. 6.12 Lending Based on Race and Income This section reviews activity by all lenders and gives some indication of how Blacks and Whites fare in obtaining conventional home loans when income levels are considered. In many cases, the rate of applications to Whites is four to five times greater than to Blacks. Typically, upper-income applicants would have the least trouble in obtaining a loan. In all income groups, White rates fared better in applications, origination and denials. However, upper-income Blacks had a 65% chance of being approved, while Whites of equal income had an 85% chance of being approved. This disparity is more alarming among those earning between 80% and 119% of median income-the middle class. In the Orange County MSA, Blacks in this income range had a 51% origination rate, while Whites had a 75% rate. Blacks were denied 20% of the time and Whites 20