Bismarck Tribune - Bismarck News - '06 report shows Indians denied loans

'06 report shows Indians denied loans

Dec 31, 2007 - 04:05:15 CST

FARGO (AP) - Willard Yellow Bird says many American Indians don't even attempt to apply for home loans.

"They're just so used to getting denied," said Yellow Bird, safety coordinator for the city of Fargo and a liaison to the city's Native American Commission.

An analysis of home loan applications for 2006 by the Forum newspaper found that lenders denied one out of every three applications made by American Indians in North Dakota and more than one out of every four in Minnesota.

American Indians are North Dakota's largest racial minority, accounting for 5.2 percent of the state's population in 2006, according to the U.S. Census Bureau.

They accounted for 1.1 percent of the state's home loan applications last year.

The Forum analyzed a database containing records of 34,373 home loan applications made in North Dakota and 537,288 filed in Minnesota last year, as reported under the federal Home Mortgage Disclosure Act.

American Indians, like other races, are denied loans for a variety of reasons.

The HMDA reporting form includes a space where lenders may list the reason for denial, but they're not required to do so. Roughly 71 percent (3,309) of the 4,643 loan applications denied last year listed a reason for denial.

Last year, 378 American Indians were the primary applicants for home loans in North Dakota. Financial institutions denied 126 of the applications.

Credit history was cited as the primary reason for denial in 26 of the 59 applications where a reason was listed.

Seven applications were denied because of collateral, five because the application was incomplete, three because of debt-to-income ratio and two each because of employment history, unverifiable information and insufficient cash. Nine listed "other" reasons, and 67 gave no reason.

Phillip Lewis, accounting manager for the Spirit Lake Housing Corp. on the Spirit Lake Indian Reservation in east-central North Dakota, said tribal members face the same obstacles with credit scores and debt-to-income ratio as other races.

"You really hope and believe that those are the criteria by which things are handled," he said.

Ramsey National Bank in Devils Lake, just north of the reservation, reviews loan applications on an individual basis and uses the same criteria, regardless of whether the applicant lives on or off the reservation, said Amy Heilman, the bank's marketing officer.

"We don't base anything on the race or religion or any of those factors," she said. "It's just based on their financial situations. We treat them the same as we do our other customers."

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Comments

Tonya White Mountain wrote on Jan 4, 2008 4:28 PM:

" I am a homebuyer educator and have been for many years. It is not perception but fact that Native Americans are still the least served in the homebuying arena. HMDA and other statistics prove this... Just because some lenders state that they do not discriminate does not mean that ALL lenders do not discriminate. "

Jodi Deplazes, First Community Credit Union, Fargo, ND wrote on Jan 4, 2008 7:03 AM:

" I have written home mortgage loans for Native Americans, ON and OFF of tribal trust lands, and there is no difference in fitting the loan critieria than any other race. Let's try to stay positive and help education 'all races' on gaining credit to purchase or refinance a home - it is not just about being denied or approved, HELP EDUCATE! :) "

living near res wrote on Jan 2, 2008 11:45 AM:

" Many people of all races are denied loans daily. It doesnt matter what color your skin is if you have the ability to pay it back. Banks are taking a huge chance loaning money out they want to know that they will get it back. If you have shady job history, unemployment, failure to pay on other loans or just to much debt to begin with you will be denied. Try not getting such a big loan or a better paying job to save money to put down. "

Tonya White Mountain wrote on Jan 2, 2008 9:00 AM:

" I am surprised and dismayed at the ignorance displayed by most of the comments posted. I can say first hand that discrimination is alive and well and living in the Dakotas. I went to a border community bank where the loan officer refused to even give me a loan application. She said I didn't have the assets. She made this decision without even pulling my credit, but after I told her I wanted to buy a home on the reservation. When a coworker went to another bank she was told, they didn't do loans on the reservation. If you think discrimination does not exist, try walking into a bank with dark skin and a Native American surname... "

Educated Indian Grandmother wrote on Jan 1, 2008 4:53 PM:

" Our people have survived the oppression and brutalities of a christian culture who seeks to destroy everything around them and endure with power and their hyprocritical christianity. Thanks be to the creator that not all that exist in this overbearing culture are like this and have been sensitive to the autrocities their ancenstors have endured on others (in other words - not all white people are materialistic and self centered power hungry money driven christians). Our Indian people have only been a part of this society for a little over a hundred years and look how far we have come to adapting to this materialistic society. Many, and I mean many white people come to us for guidance on matters not materialistic in nature. We will again learn the rules of the game and homeownership will be ours just as education and economics is now becoming a reality to us. WE will survive and conquer this matter as well. And I agree, what is the point of this article. Many Indian people have built homes on my reservation. "

Kansas girl wrote on Jan 1, 2008 10:44 AM:

" I believe that banks do not discriminate but use the information that is given them to determine if you will be a credit risk to them, Anyone that has a problem with not getting a loan needs to go home and start being responsible with there finances and getting a loan will not be a problem, Banks just want to know that they will be getting there money back. "

Still to blame, wrote on Dec 31, 2007 1:45 PM:

" I guess we will have to place blame on the "Hostile and Abusive" nature of the Fighting Sioux logo and its direct impact on our native's credit history. I have learned my lesson well Poetic Justice. It has to be the university's fault that people have poor credit histories and high debt to income ratios. Personal responsibility be darned. "

Tired of This wrote on Dec 31, 2007 1:05 PM:

" I bet that there were other races that were denied too, because of the same criteria.... where is that headline? Is this another ploy to draw sympathy for the American Indians? "

Independent Conservative wrote on Dec 31, 2007 9:22 AM:

" Speaking of credit history and debt-income ratio, etc., Philip Lewis said, "You really hope and believe that those are the criteria by which things are handled." Was the point of this story to stir up strife between First Nations and other ethnic groups? Or was it simply to humiliate Original Americans? What an embarassing piece. It is apparent that lenders are playing by the rules, so why the story, if for no other reasons than to create a nonexistent racial crisis or try and humiliate a specific ethnic group? "

Edward wrote on Dec 31, 2007 8:30 AM:

" Wonderful information. Is there any point to it? "

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