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Show The Enterprise Review , Page 2b Anti-Redlinin- 1976 Bill Impacts Mortgage Lenders g Bankers agree the new law forcing them to disclose where they make mortgage loans will mean more work for Security Bank's mortgage loan department. Walker Bank, Commercial Security Bank and Tracy-ColliBank all reported they may be adding more staff to handle the paperwork, but werent sure yet. All bankers said they did not expect the new law to change their lending policies. Weve always attempted to loan in all areas, Lambert ns them. But they arent all complaining. We will, have to hire more people to handle the additional paperwork. But we arent objecting, stated Norval Lambert, vice president and manager of First said. Only one banker TO LEND the Crossroads Urban Center, the group is gathering pledges from people with savings and checking accounts. The pledge reads in part We pledge that as follows: our financial assets will be Compliance withdrawn from any lending institution that refuses to The new law, The Home make home or. home imMortgage Disclosure Act, provement loans in what takes affect June 28. It means might be considered redlined mortgage lenders must dis- areas." close loans by type and area' According to Richard 30. At beginning September Male, director of the Center, first they may use zip code the group has gathered becategories. But by the second tween 0 worth of converted must have year they in the first four pledges to disclosure by census tract. weeks. The group hopes to Loan information must be gather $3 million worth. broken down by the number Asked how he intends to for single family houses, determine which institutions apartments and home im- redline and which do not, Information Male responded, "Through provements. must be disclosed annually. personal contact and meetd The Act was ings." He said People against g Bill the Redlining representatives inbecause it was meant to help tend to meet with lending end a practice allegedly prac- institution to representatives ticed by mortgage lenders by discuss the situation. which they refuse to loan People Against Redlining money for homes or home is a group of about 20 agencies improvement in certain and 40 individuals, Male said. areas. He said it has been organized According to John Peace, for about two months. staff assistant with the Federal Reserve Bank, bank ofBright Light ficials enforce the law only upon consumer complaints. In addition to soliciting After a bank or loan the group is canvasassociation customer com- pledges, sing target areas of the plains , Federal ReserveBoard asking homeowners if bank officials investigate the city, have experienced trouble situation and ask the lender to they obtaining loans for homes or comply with the new law. If home improvement. compliance is refused, the We will people matter is turned over to Board who want to organize live in their attorneys, Peace said. neighborhoods. We will ask them what they want their Redlining neighborhood to look like, and Although lenders and city if they are happy with the city officials in Salt Lake contend services and loan services they redlining is not practiced here, receive," Richard Male said. citizen groups in the city in a The May Redlining May, 1976 report, said they port called the Home Morthave proven Salt Lake banks gage Disclosure Act a bright do redline. light in a dark forest." Male the evidence the said he definitely" intends to Among group offered, in a report use the information provided entitled Urban Blight Subby lenders complying with the The same thing could have been done in another way, said Paul Williams, assistant vice president of mortgage loans at Walker Bank and I think Trust. they could have sent out a circular to 363-115- 3 nick-name- Anti-Redlinin- indicate we would be punished for redlining, he added. He said he thinks the new law just adds to the cost of making a ana cfmocLatzi 561-599- $600-650,00- Just Adds Costs Mortgage money, finance risk venture capital specialized loans for any project. red-line- loan. 1 Trello Prince, assistant , The IMTS System d" urban Sprawl: A Study of in Salt Lake City," Redlining was an analysis of FHA loans made during a typical h period. Of 456 FHA loans serviced, the report stated, only 17 were for homes in middle income areas within the city." Four were for homes in the Capitol Hill area, four for Central City and nine for the West side, the report said. three-mont- NEW FEATURES has the very newest mobile telephone system for those who want the finest telephone service. GENERAL TELEPHONE in-c- ar GENERAL TELEPHONE will help you step-uUHF mobile telephone to the "first-clas- s p that gives you the competitive edge. GENERAL TELEPHONE brings you mobile telephone features. COME SEE US for a free demonstration of our two new car lines, at 1171 South, West Temple, between 9 a.m. and 5 p.m. daily. FOR MORE IN FORM A TION 1. The latest in technological advancement. 2. Unlimited 3 minute calls. 3. Direct dial - fully automatic.4. Entire Wasatch Front cov- - erage. 5. Uncrowded channels. 6. Automatic identifying The report also quoted representatives from many major Salt Lake lending institutions who supposedly stated no other call interfers. 7. Toll free calls ultimately servicing Salt Lake City, Ogden and Provo. 8. Styling to compliment the decor of any automobile. they do not lend money for homes in certain areas of the city. Greenlining In response to the problem they see as a major one in Salt Lake, authors of the CALL study, a group called People Against Redlining, are currently staging a major antiredlining campaign. They called their tactic einieirtsil TTeDeipCnoDne i . i ii j tI i i ! : by members of gage, said his department has been keeping track of loans by area for a long time already. The new law wont affect our lending policy. We try not to overloan or underloan in any area," he said. Norval Lambert said he thinks the law may help solve the redlining" problem it was meant to solve. If everyone works together, this law might provide an impetus to help get the job done." he said. "Its hard to say, Roy Adreon, vice president of mortgage loans at Commerical Security responded. It might help in some areas. But I - I'm fearful that there is a strong conflict in the law. They want bankers to exercise prudent lending judgement. But the law infers we should make loans in areas that are not safe," Adreon said. MONEY Staffed vice president of Tracy Mort- rather question it. t June 23, K A f fc t I Act. We want to force bankers to recognize the needs of the citizens," he added. Male listed the target areas being canvassed as the inner city, the west side of the Marmalade city, and the Hill area behind the Capitol. Candy Firm Introduces New Packaging A collection of scenic candy boxes was introduced this week by Anderson Candy Company, a Utah based firm that recently purchased plant facilities from Ostler Candy. The Utah made candy will be marketed under the Ostler and Anderson labels and sold nationally. Harry R. Ostler whose father formed the original company in 1917, will serve on the board of directors and serve in an advisory position. . . I |