Magazine article American Banker

Mitsubishi Bank Unit Assailed on Record of Loans to Blacks, Latinos

Magazine article American Banker

Mitsubishi Bank Unit Assailed on Record of Loans to Blacks, Latinos

Article excerpt

A prominent community group says Bank of California is doing a dismal job of making home mortgage loans to blacks and Latinos.

The California Reinvestment Committee is basing its claim on a recently completed analysis of 1993 Home Mortgage Disclosure Act filings by the 20 largest banks and thrifts in California. The filings are the most recent data available.

According to the analysis, $7.7 billion-asset Bank of California, a unit of Mitsubishi Bank Ltd., got three home mortgage applications from blacks in California during 1993 and two from Latinos. One of these applications was approved.

No other institution studied by the group offered fewer loans to, and had fewer applications from, blacks or Latinos.

"This is an indicator of a lack of openness by Bank of California to low-income and minority households," said Alan Fisher, the committee's executive director.

A Bank of California spokeswoman confirmed the data but disputed the conclusions. She said the institution has made substantial efforts to open banking relationships with minorities and lower- income people.

For example, Bank of California started a program in late 1993 called Community Outreach that focused on lending to low- and moderate-income people. The program originated a total of $27.6 million of loans in 1994, she said.

Nearly all of these were refinancings of home loans and will not show up in the Home Mortgage Disclosure Act filings, which tally new loans. …

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