ROCHESTER, N.Y. (WROC) — Governor Hochul released a report from the Department of Financial Services as part of an inquiry into redlining in Rochester, Long Island, and Syracuse mortgage lenders.
The report contains information on different mortgage institutions’ performance in lending mortgages in majority-minority neighborhoods and borrowers in a minority group. State officials said the report shows racial disparities in mortgage lending.
According to the report, 23.9% of the population in the Rochester metro area are people of color, and lenders make 11.32% of their loans to people of color — experts say this is less than half of what would be expected based on population make-up.
“This report sheds a light on the barriers that communities of color, who have historically faced discrimination when seeking a mortgage, continue to face when it comes to making the dream of homeownership a reality,” Hochul said. “With our state in the midst of a housing crisis, practices like redlining not only restrict New Yorkers’ access to homeownership but also threaten affordability statewide.”
Additionally, the report details findings for Nassau County, Suffolk County, and Syracuse:
- 41.8% of the population in Nassau County are people of color, but lenders, on average, make 34.27% of their loans to people of color.
- 33.7% of Suffolk’s County population is made up of people of color and, on average, lenders only make 21.86% of their loans to people of color.
- In the Syracuse metro area, 18.7% of the population is made up of people of color and, on average, lenders make 8.67% of their loans to people of color.
The Department of Financial Services said they didn’t find any violations of fair lending, however, 1st Priority Mortgage, Inc. and Premium Mortgage Corporation agreed to reform their practices and expand access to underserved communities.
Governor Hochul said that the administration is working on expanding the Community Reinvestment Act in order to expand oversight to non-depository mortgage lenders in New York.