February, 1998

Access To The Dream:
Mortgage Lending in Texas

Written by the Consumers Union Southwest Regional Office.
on behalf of the Texas Community Reinvestment Coalition

At the time Ms. Delia P. applied for a home loan at NationsBank four years ago, she and her husband had been married for ten years, had two girls, and steady income, she told Consumers Union. The family's combined income qualified them for a home valued over $100,000, but they set their sights on a $72,000 brand-new home.

They attended a home-buyers class and saved for the down-payment. According to Ms. P., NationsBank denied the couple a home loan after a four-month application process because of a two-week late payment on a credit card.

"My credit report was clean except for a late payment on a credit card," she said. "I took my application to another lender-CountryWide Mortgage-and we were approved within four days.We got in and out without having to go through the stress and feeling like we were just the worst people on earth and the only ones that had a late bill.."

Ms. P. specifically chose to apply for a home loan with NationsBank because their advertisements suggest a high minority lending record.

"What frustrates me is to drive by and see these billboards that show Hispanic families getting home loans, and you know they're not. They are not getting them because I'm Hispanic.I've seen [NationsBank] a lot in advertising, but haven't seen [them] where it counts-on the community level."