Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, May 22 1992 Date: Fri, 22 May 92 05:21:01 EDT Message-ID: 05-22 0000 DECISIONLINE: Real Estate USA TODAY Update May 22-25, 1992 Source: USA TODAY:Gannett National Information Network ACCUSATIONS OF BIAS RESURFACE: In the wake of the Los Angles riots, focus has turned to bias among home-mortgage lenders. Under federal law, banks and some other lenders must prove loans aren't unfairly denied to low-income and minority depositors. But a 1991 study by the Federal Reserve shows black applicants have a 66% chance of getting a conventional home loan, compared to an 86% chance for white applicants. (For more, see special Bias package.) FED DOESN'T PLAN TO LOWER RATES: Tuesday's news of fewer housing starts led to speculation that the Federal Reserve might lower interest rates, but policymakers won't be lowering rates in the near future, the Wall Street Journal reports. The news of Fed policymakers' faith in the recovery's strength was accompanied by Thursday's Labor Department report that fewer people are filing for unemployment benefits. SHERATON ANNOUNCES LAYOFFS: ITT Sheraton's layoff of 400 employees - including many senior and middle managers - is not a response to overbuilding and overborrowing, analysts say. Sheraton, joining a lean management trend, is hoping to become an innovative leader, says Coopers & Lybrand hotel analyst Bjorn Hanson. Sheraton has spent more than $1 billion since 1989 to buy or refurbish showpiece hotels. VAIL CLOSES IN ON ASPEN: A six-bedroom mansion in Vail, Colo., that sold for $6.25 million earlier this month was the most expensive sale in the resort's 30-year history. The purchase, made by oil-rich Texans Lee and Romona Bass, helped bring Vail prices more in line with rival resort Aspen, which typically enjoyed higher prices. PROVIDENCE ENACTS HOME PROGRAM: Providence, R.I., Mayor Vincent Cianci Wednesday unveiled a program to provide affordable homes to low and middle income residents. Under the New Start Homes program, the city will build or rehabilitate 90 homes by 1995, then sell them to applicants earning at least $20,000 annually. Buyers must also agree to live in the homes for at least 10 years. IOWA MORTGAGE COSTS STABLE: Median mortgage costs in Iowa remained stable at $553 during the 1980s, according to 1990 figures from the Census Bureau. Figures show that rental costs fell 6.1% from $358 in 1980 $336 in 1990. Of homes in the state, 10% were built since 1980, compared to 35% that were built before 1940. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.64% Thursday, unchanged from Wednesday but down from 8.75% the week before. They were at 9.50% a year ago. For 30-year adjustable-rate mortgages, the rates were 5.97%, unchanged from Thursday but down from 6.02% the week before. A year ago they were at 7.23%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.12% Thursday, unchanged from Wednesday but down from 4.25% the week before. A year ago they were at 6.13%. For the 11th District ARM index, rates were at 5.611%, unchanged from Wednesday and unchanged from the week before. A year ago they were at 7.654%. T-BONDS CLIMB: Treasury security rates for the 30-year bonds showed a decline Thursday, listing at 7.86%. That's up 0.06 from rates of 7.80% Wednesday and unchanged from the week before. A year ago T-bonds were at 8.29%. SPECIAL PACKAGE ON BIAS: LOAN RATES ARE LOWER FOR BLACKS: Home-loan approval rates differ for black and white applicants with similar incomes, according to a 1991 Federal Reserve study. Although the study doesn't prove widespread discrimination among lenders, minority and low-income borrowers need more credit, concedes Robert Freeman, chairman of Richmond, Va.-based Signet Bank. SOME GROUPS ARE TAKING STEPS: The American Bankers Association announced Thursday the creation of the Center for Community Development, aimed at education bankers and borrowers about fair-lending issues. And regulators are being urged to refer cases for investigation, justice officials say. also, the comptroller of the currency has asked some banks to justify their lending practices, reports say. CURRENT EFFORTS CRITICIZED: Despite efforts to lending discrimination, anti-bias laws still need tougher enforcement, critics say. They believe that the four federal agencies charged with enforcing those laws are not strict enough with lenders. Some critics have suggested the creation of an agency, similar to the Justice Department, whose duties would be to fight lending bias. (End of package.) ADVISORY: Decisionlines will not be published Monday, May 25, in observance of Memorial Day. Decisionlines will resume publication on Tuesday, May 26. Real Estate Editor: Christopher Goldthwaite. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM