Fair Lending Task Force
The Massachusetts Fair Lending Task Force was established in 2005 to promote and ensure fair and equitable mortgage lending to all individuals.
The Fair Lending Task Force included representatives from the Massachusetts Credit Union League (now the Cooperative Credit Union Association); Massachusetts Bankers Association; Massachusetts Mortgage Bankers Association; Massachusetts Mortgage Association; Massachusetts Community and Banking Council; Massachusetts Division of Banks and Loan Agencies; Federal Reserve Bank of Boston; and Federal Deposit Insurance Corporation.
This Task Force unveiled its final report and proposed recommendations. The report is based on input from a variety of studies; prior fair lending projects; an industry survey; and five regional forums held across the state. It contains user-friendly recommendations and tools to assist in implementing changes. Clearly, significant progress has been made by the lending industry on increasing the availability of mortgages and the level of approved loans to minority borrowers. However, the denial rates continue to be higher than expected, including denials for higher income borrowers. It is critical that the Massachusetts financial services industry continue to work on reducing the disparity between white and minority group borrowers prior to any proposed state or federal legislative or regulatory correction.
Fair Lending Coordinating Committee
The Massachusetts Fair Lending Coordinating Committee was established as an entity charged with working to implement and promote fair lending policies and practices throughout the Commonwealth. The Coordinating Committee is the successor body of the Massachusetts Fair Lending Task Force which completed its work.
Consistent with its overall mission, the Coordinating Committee’s responsibilities include:
- Continuing to promote and implement the recommendations of the Massachusetts Fair Lending Committee;
- Continuing to evaluate and promote steps to reduce denial rates for minority loan applicants;
- Working with community and non-profit groups together with state and national housing agencies and the secondary market to expand access to credit for minority borrowers; and
- Promoting and encouraging consumer education on credit and financial literacy to ensure that borrowers make sound and informed decisions when utilizing credit.
The Massachusetts Credit Union League (now the Cooperative Credit Union Association) is a founding member of the Fair Lending Coordinating Committee. A series of implementation steps and best practices for addressing the recommendations in the Fair Lending Task Force Report are under development. Programs and developments from the Coordinating Committee will be posted here as they become available.
For more information on this report, please email Mary Ann Clancy.