E-LOAN, NetNoir and the L.A. Urban League Launch Program to Promote Home Ownership and Computer Access Among African-Americans and Lower-Income Households and Communities

Business Wire, August 27, 1998

LOS ANGELES--(BUSINESS WIRE)--Aug. 27, 1998--E-LOAN (http://www.eloan.com), the leading online mortgage broker, NetNoir -- The Black Network (http://www.netnoir.com), the premier black online service, and the Los Angeles Urban League (http://www.laul.org) today announced an innovative pilot program, Black Homes Online (http://www.blackhomes.com), designed to promote home ownership and computer access among African-Americans.

The Los Angeles pilot is the first phase of the alliance's charge to help African-Americans obtain low-cost home loans through provisions of the Community Reinvestment Act (CRA) and also to provide computers and Internet access to lower income households and neighborhoods.

The program is dedicated to helping people take advantage of CRA mortgage loans and to increasing awareness of Internet access among black Americans. Through Black Homes Online, people can find out if they qualify for a CRA loan and, if so, can complete the entire loan application process via the Internet.

People who apply for and obtain a mortgage through E-LOAN's special CRA mortgage center at www.blackhomes.com will receive a free IBM computer and one year's worth of Internet access at no charge through NetNoir -- The Black Network.

The Black Homes Online program is made possible by the cost savings that E-LOAN has brought to the traditional loan application process by using the Internet to capture and process information. Those savings are passed on to consumers in the form of a brand-new personal computer, as well as lower fees.

NetNoir -- The Black Network, the leading black online service, will arrange for each successful loan applicant to receive the computer, along with one full year of Internet access at no extra charge, thereby encouraging new computer owners to get online and find out about resources for the black community.

Those who do not currently have computer access can take advantage of the Black Homes Online program thanks to the Los Angeles Urban League, which has three centers in Los Angeles providing free computer access for program applicants.

The Black Homes Online pilot program resonates with the missions of all three organizations. For E-LOAN, this outreach program helps ensure that all communities, regardless of income, can achieve home ownership. For NetNoir, it's another way to encourage black Americans to use the Internet for their own education, entertainment, and to invest in skills that are becoming increasingly standard in the working world. For the Los Angeles Urban League, Black Homes Online enhances the organization's efforts to promote economic development and equality for African-Americans.

"Black Homes Online speaks to the heart of E-LOAN's mission to help more Americans achieve the dream of home ownership by putting them in control of the mortgage process and reducing transaction costs," said Chris Larsen, chief executive officer of E-LOAN. "This program demonstrates how the Internet can be leveraged to improve people's lives."

"Access to technology is central to the Los Angeles Urban League's mission in preparing our constituents for the 21st century," said John Mack, president of the Los Angeles Urban League. "Blackhomes.com is an example of the kind of innovative programming this city needs to level the playing field for African-Americans, and I hope it will be an example for similar programs."

"It's time to reach beyond the early adopters of computers and the Internet," says E. David Ellington, chief executive officer of NetNoir Inc. "Many people -- African-Americans and lower income households in particular -- still haven't enjoyed the benefits of the Information Age because they feel it hasn't offered them anything.

"Black Homes Online caters to them -- demonstrating how technology can be used to make their families' lives better and help them realize their dreams."

To take advantage of the program, Los Angeles area residents must qualify for loans through the provisions of the Community Reinvestment Act of 1977 and apply for and obtain their loan online through the blackhomes.com mortgage center. Blackhomes.com will help people find out if they meet the CRA requirement(s) necessary to obtain these special low-cost loans.

Specifically, a person whose median household income is less than 80% of the median income of their county of residence and/or who chooses to purchase or refinance a property in a designated Community Reinvestment Act census tract should qualify. Down payment and debt-to-income ratio requirements are significantly easier under the CRA program than for conventional loans.

People interested in the program who do not currently have Internet access may go to the Urban League's Ron Brown Information Technology and Business Center in Los Angeles or one of two other centers in the city to apply on a computer at no charge. Schools and public libraries also offer free Internet access where people can take advantage of the program by visiting the Black Homes Online Web site (http://www.blackhomes.com). For more information about the program, consumers may call toll-free 877/252-2546, or 877/black-hm.