Justice Dept. probing banks for loan bias - discrimination in mortgages - Brief Article

Jet, March 15, 1993

Federal regulators fighting mortgage bias have targeted 200 banks and savings institutions with suspicious lending patterns for thorough investigation.

Using loan data from 1990 and 1991, the Justice Department has flagged 200 institutions with wide discrepancies in loan approval rates between Blacks, Whites and Hispanics, Federal Reserve Board member John P. LaWare said. Four agencies regulating financial institutions will take a closer look at the 200, each selecting five or six with the worst records that the Justice Department will further investigate.