Watchdog Group Questions Fairness-in-Lending Under HAMP

April 1, 2010 - Washington - A new survey conducted by a consumer watchdog group raises questions about whether or not banks are following fairness-in-lending laws while administrating the government's Home Affordable Modification Program (HAMP). According to reports at The Washington Independent, a survey conducted by the National Community Reinvestment Coalition (NCRC) showed that there are severe disparities in who is benefiting from the loan modification program.

The NCRC data shows that only 24% of eligible black homeowners who've applied to the program have received a permanent loan modification, compared to 36% of white homeowners. While this finding could be explained by a variety of factors, the National Community Reinvestment Coalition thinks this may be yet another problem with the Home Affordable Modification Program, which has failed to stem the tide of foreclosures in Massachusetts and around the country.

Given the data uncovered in the survey, the National Community Reinvestment Coalition is urging the federal government to investigate whether or not banking institutions are following fairness-in-lending laws. The president of the NCRC gave testimony to Congress last week.