BankAmerica Sets CRA Loan Goal
SAN FRANCISCO -- BankAmerica Corp. has set a $1.2 billion annual goal for community lending after its merger with Security Pacific Corp.
The 10-year total of $12 billion would be a $3 billion, or 33%, increase from previous commitments made by the two companies, BankAmerica chairman Richard M. Rosenberg said Thursday.
Low-Income Housing Loans
Speaking at a meeting in Phoenix sponsored by the Federal Reserve Bank of San Francisco, Mr. Rosenberg said BankAmerica intends to lend for low-income housing development and other purposes.
The announcement, at a conference on the Community Reinvestment Act, came in the face of a series of challenges to BankAmerica's community lending record by West Coast activist groups -- though the company's flagship bank got an "outstanding" grade for CRA compliance.
The debate on BankAmerica's CRA performance heated up last week when Home Mortgage Disclosure Act data showed Bank of America had turned down minority and low-income loan applicants at a rate about 50% higher than for white applicants.