MAUDE HURD 

MASSACHUSETTS 

Good morning. My name is Maude Hurd and I am the National President of 

ACORN, the Association of Community Organizations for Reform Now. For those 

who don’t know, ACORN is a grassroots community organization of over 125,000 

low income members in 30 cities. ACORN members organize in their 

neighborhoods to fight discrimination and to win a voice in the policies and 

institutions affecting the low income community. 

ACORN members have fought redlining and mortgage discrimination all across the 

country. We use the IIome Mortgage Disclosure Act and Community Reinvestment 

Act to negotiate innovative agreements with banks that remedy past discrimination. 

Since we signed the first of these agreements in 1985, the ACORN Housing 

Program has worked with banks to put over 2 1,000 families into their own homes, 

valued at $1.53 billion dollars. ACORN’s program has also generated an additional 

$4 billion dollars in low income community investment. 

ACORN’s housing program has won awards for its success in helping low income 

and minority borrowers successfully get and pay their mortgages. Our agreements 

with banks include progressive underwriting standards, intensive one-on-one 

housing counseling for borrowers, and, wherever possible, below-market interest 

rates. 

Fleet signed an agreement to participate in the ACORN program in 1995, when 

they were buying Shawmut Bank. The agreement covered Massachusetts and 

Connecticut and has produced over 1,000 successful homeowners, and more than 

$120 million dollars in mortgages. The program also increased access to 

homeownership for single parents, recent immigrants, lower income buyers, and 

people who don’t qualify for traditional mortgage underwriting, but who still pay 

their bills and pay them on time. 

The Fleet-ACORN partnership and pro.grams like it have been crucial in bringing 

capital and credit into low income minority neighborhoods. For most Americans, 

homeownership is the single biggest source of wealth. It means the difference 

between living paycheck-to-paycheck and building equity for yourself and your 

family. Homeownership is even more crucial for the stability and economic growth 

of minority communities. Minority homeowners hold 75% of their wealth in home 

equity. The difference between owning and renting is staggering for AfricanAf ORN TFSTTMT)W fnr Fwbml R mm-m Hew-ho nn Fle-et-RnnkRnctnn nwrcwr CfWNF~TT~T lT Pnon 8 
Americans: the average Black homeowner’s net worth is $48,300 dollars, ,while for 

the average renter it is only $500 dollars. 

Homeownership helps the homeowner, but it also helps the community. 

Homeowners are much more likely than renters or landlords to protect and improve 

their properties. There is more stability and less crime in neighborhoods of owneroccupied homes, and a greater involvement in community and civic activities of all 

kinds. 

With ACORN’s Fleet agreement and others like it, we were really starting to see a 

positive shift in rates of minority homeownership. In the early and mid I99Os, the 

percentage growth of minority homebuyers was greater than that of whites for the 

first time ever. These deals were helping our Massachusetts and Connecticut 

neighborhoods achieve the American Dream of homeownership, while helping Fleet 

gain significant market share in minority lending. 

But as the 90s draw to a close, we are starting to see a downward trend in lending to 

minority and low income census tracts. As banks like Fleet get bigger and less 

accountable to local communities, they walk away from innovative programs and 

begin to use cookie-cutter formulas that try to fit everyone into a white-middle-class 

ideal of good credit. Sometimes they even get encouragement from Washington, as 

the conservative Congress tries to dismantle the Comrnunity Reinvestment Act. 

If this merger proceeds, Fleet will be the biggest mortgage player by far in Boston, 

Bridgeport, and many other cities across the Northeast. When they turn their back 

on the programs that brought in 30%-80% of their minority lending business in 

recent years, they are turning their backs on our communities. And let me tell you-- 

without these kinds of programs, our neighborhoods don’t stand a chance. 

If Fleet turns their back on the ACORN program, their record in Boston is likely to 

go as low as it has in other cities. Over the last ten years, Fleet has been showing an 

alarming trend: each time the bank merges it decreases its community reinvestment 

work. Fleet’s CRA ratings have been going down in recent years, even when the 

banks they acquire have a grade of “Outstanding.” It happened with Northstar in 

1991, and NatWest in 1994. These banks were high quality community lenders, but 

since acquiring them Fleet entities have remained in the “Satisfactory” to “Low 

Satisfactory” range and slipping. 

Our communities cannot afford to have history repeat itself as Fleet swallows up yet 

another bank without making concrete commitments to continue lending in low 

income and minority neighborhoods. I call upon the Federal Reserve to delay this 

AfYlRN TFSTlM~NY fnr Fdm-al Rmm-ve H~arino nn Fleet-RmLRnctnn marmv MA S.C ACWl T.SFT’7.S Paoe 9 
merger until Fleet can prove that it will meet its investment obligations to our 

communities. 

Tllank you. 

AfTIRN TFSTIMCINV fnt Fe&-al Rpepnm Hem-ho nn F&et-RnnkRoctnn nwro~ MASSA~HlTSF.-lTS Paw II) 
LUCY MATE0 

CONNECTICUT 

Hello. My name is Lucy Mateo. And just last week my husband and I achieved the 

American Dream of homeownership, thanks to the Fleet-ACORN partnership. 

I always wanted a home of my own, and my husband and I had saved and budgeted 

for years to afford a downpayment. I worked hard at my job as a machine operator 

at Ericsson and got overtime whenever I could so we could save more. But then 

when my husband got sick last winter, all our savings were wiped out paying for 

doctors and hospital bills. It was so painful to get behind with our bills--I could 

either put food on the table or keep our debts from going to collection agencies. I 

was so swamped with hospital bills that I got behind in everything because I just 

could not make ends meet. I thought I would have to kiss my dream goodbye. 

But thanks to the ACORN program with Fleet, that wasn’t necessary. No other 

bank would have touched this loan, but with the ACORN IIousing loan counseling 

program I had a chance. I worked with my loan counselor to develop a payment 

plan for our debts. He helped me write two letters explaining our situation and 

showing that we could be a good credit risk. He also talked to the loan officers at 

Fleet on our behalf. They knew him and trusted him from the relationships they had 

built up over the years, so his support really helped. 

Because of the ACORN Program, Fleet took a careful look at our application and 

decided we qualified for a loan. And last week we closed on our beautiful new 

home. 

If Fleet walks away Tom their partnership with ACORN, I am very worried that 

other families like ours will not receive the compassion and understanding that they 

need. Without a community program like the ACORN program, your loan 

application just gets shipped out of state, or decided by a credit score that you have 

no hope of affecting, even if you have special circumstances like mine. We were 

able to achieve the American Dream because we had access to Fleet. But when they 

turn their backs on the community, that access will be gone and many, many low 

income and minority families will be locked out in the cold. 

Please do not approve this merger without requiring Fleet to continue its program 

with ACORN. This program was our only chance--and it is the only chance for 

many others as well. 

Thank you. 

ACORN TF.<TlMCINY for Federal R~UV-W Heaino nn Fleet-RankRnctnn meruer rnwrTlr1 TT Pnoc. 6 
a i 

LORIBROWN 

CON-NECTICuT 

Hello. My name is Lori Brown and I live in Bridgeport, Connecticut. I got my home 

through the Fleet program with ACORN. A few years ago, I was living in a tiny, 

illegal 3-room apartment as a single mother. I couldn’t afford a real two-bedroom 

apartment, but I knew that if I could just buy a two-family home, I would be able to 

use the rental income to bring down my mortgage payments to a level I could 

handle. But I couldn’t get a bank to give me a loan--I had some credit issues and 

was self-employed, so even though I made decent money, no one wanted to look at 

me. Only the Fleet program with ACORN would help me out when no other bank 

would give me a loan. Thanks to the ACORN program, my child and I are living 

today in our own home, on a quiet street, where,lots of people are homeowners and 

really care about keeping up the neighborhood. 

I own my own home today, and my daughter has a safe place to grow up, because 

Fleet agreed to look at my loan application when no one else would. Through the 

ACORN Housing Program, Fleet didn’t try to fit me into a cookie-cutter pattern of 

what I was supposed to be. Fleet took a closer look. 

I also used to work for ACORN Housing Corporation as a loan counselor. And I 

saw how Fleet treated people like me when the bank was part of the ACORN 

partnership: they took a closer look. 

Most banks use credit scoring to decide if they want to make a loan. They ask 

everyone the same questions and run the credit report and send all those numbers 

out of state and come back with a yes or a no. Well, in our low income and minority 

neighborhoods, it was mostly no. But the ACORN and Fleet partnership took a 

closer look. They looked at things that don’t go into a credit score, but that make a 

world of difference in your application. They looked at my plan to use the income 

from renting out one apartment in a two-family home to help pay my mortgage. 

They looked at how I had a great record of paying my rent and utility bills on time, 

and how I had cleaned up my credit. 

Through the ACORN Housing program, Fleet also took a closer look at why a lot of 

other people from Connecticut’s low income minority communities can’t get loans. 

For example, when you live paycheck to paycheck you can pay alI your bills and 

put food on the table for your kids, but not have a ton of money in your savings 

account. The Fleet and ACORN program took a closer look and would let you have 

non-owner-occupant co-borrowers, so your parents or relatives could help you with 

ArfIRN TFSTTMONY fnr Fwic=~l Revvv~ H~xino nn Fleet-RanlcRncton meruw N-FW YT)RK Paoe 3 
your payments. They took a closer look and let you put one percent down of your 

own money and four percent from a gift. They took a closer look and let you use all 

kinds of non-traditional credit to prove that you were good at paying what you owe. 

When they worked with the ACORN program, Fleet also took a closer look at being 

a team player. They kept in touch with the ACORN IIousing loan counselors, case 

by case. If it looked like there was going to be a problem with an application, they 

would come and talk to us so we could work through the issues with the buyer. 

When Fleet began to partner with ACORN Housing, they took a closer look at my 

community--and we needed help and we were glad to get it. That’s why ACORN 

Housing did almost 300 loans with Fleet in 1996 in Connecticut. And these loans 

have worked. I know I’m paying my mortgage payments every month and on time. 

And almost every one of the clients I counseled is doing the same. 

We never heard complaints from Fleet about the loans or about our clients. So when 

I heard that Fleet was going to walk away from this partnership, I was shocked. 

So now I’m asking Fleet to stop and take a closer look. Fleet’s partnership with 

ACORN Housing accounted for more than 66% of loans to Blacks and Latinos in 

Bridgeport in 1996, and almost 80% of loans to Blacks and Latinos in Stamford and 

Norwalk. In other words, out of a total of 142 loans to Blacks and Latinos in 

Bridgeport in 1996, ACORN Housing’s partnership with Fleet was responsible for 

94 loans. In the Stamford-Norwalk area in the same year, ACORN did 30 of Fleet’s 

38 mortgages to Blacks and Latinos. What’s more, ACORN Housing accounted for 

nearly 50% of Fleet’s conventional loans to ALL buyers in each of these cities. 50% 

of ALL buyers! And, in 1997, the ACORN IIousing Program was responsible for 

over 60% of Fleet’s lending to Blacks and Latinos again in Bridgeport, and 55% of 

lending to Blacks and Latinos in New Haven. 

Why would Fleet want to walk away when two-thirds or more of their loans to 

Blacks and Latinos are being done through this program? After all Fleet has learned 

about how to make loans that benefit both the bank and the community, why are 

they going backwards? Especially when they’re estimating $400 million in profit? 

Finally, I’m asking the Federal Reserve to take a closer look. We oppose the FleetBankBoston merger if Fleet is going to walk away from this community partnership 

that accounts for so much of their lending to low income and minority 

neighborhoods. They want to get bigger and make even more in profits, while they 

leave our communities behind. 

Af CORN TFSTlMtTdV fnr Fderal Rwm-v~ Hewino nn Fleet-RankRnann rnwcwr WNNFiTTT’IlT Paon A 
Take a closer look--Fleet should not be allowed to increase their size withsut 

increasing their community commitment. I ask you to oppose this merger. 

ArnRN TFSTTMfWY fnr Fm-ieral Recent Htm-ino nn Fleet-RnnkRnctnn mec~er rnNNFrTlr1lT Pnoe 5 
GWENDOLYN JACOBS 

, 

. 

NEWYORK 

Hello. My name is Gwendolyn Jacobs and I am the president of ACORN’s New 

York Chapter. 

New York City must have every bank there is. There are so many corporate 

headquarters and there is so much money changing hands. But not where I live, in 

Brownsville, in Brooklyn. Where I live it is hard to find a good bank. There 

weren’t too many to start with, and since they all started merging, there are even 

fewer. Because of this, people in neighborhoods like Brownsville don’t have 

checking accounts, they go to check cashing stores. There’s no local branch of a 

respectable commercial bank to ask for a loan. ” So instead we’re prey to B&C 

Lenders. 

Fleet has had a dialog with ACORN about the banking problems faced by low and 

moderate income people in New York. But they have not helped us address them. 

Before we had discussed doing any programs with Fleet, we had a valuable 

relationship with NatWest, which gave good loans to minority residents of New 

York. ACORN had a highly successful underwriting program and then we 

negotiated a mortgage program offering loans at 1% below the market interest rate. 

We were helping NatWest target populations that were new to them, break into the 

large underserved Latin0 community, and build relationships with other community 

groups and with local minority churches. 

Then Fleet acquired them and it all ended. We in the New York office were led on 

to believe that these programs and our relationship would be unaffected. At the 

time of the merger they told us that all that would change was the stationery. But 

after the acquisition was complete, we were told that they didn’t need our 

“product,” that they were covered. 

Well we’ve followed Fleet since then, and in fact they don’t have products that 

match the NatWest programs that were :Ln place. Fleet has been terrible about 

providing communities with the services prescribed by CRA. It’s hard to provide 

services to a community when you don’t have a branch there. In New York, Fleet 

has 39 branches and only 4 of them are in predominantly African-American or 

Latin0 communities. 

New York State has a law that requires banks to offer “lifeline” or “basic banking” 

accounts. A few months ago, when ACORN members went to those four branches 

. 
to ask about opening accounts, none of them was told about a lifeline account. 

When members asked about lifeline accounts, they were met with blank stares. 

They were instead offered accounts with a higher opening balance requirement and 

unreasonable fees. 

So ACORN went to Fleet so we could get this fixed. The New York State law was 

on our side and Fleet claimed to be on our side too. We met with them and asked 

them about their lifeline account. We knew that they offered it because it is in their 

pamphlets. So why didn’t the employees working in their banks know about it? 

Why don’t they advertise it more, especially in the branches that serve the people 

who need it, like the law says they have to? 

That was when Fleet told us about their merger with Bat&Boston. They said they 

would make sure that their employees knew about the basic banking account and 

offered it more to customers. They also said they would make posters for those 

branches so people would not have to find mention of the account in Fleet’s 

pamphlet, they would know about it just from standing in the bank. Well, our 

members went back about one month ago and still they were not offered a lifeline 

account. Still they didn’t fmd any posters. 

Fleet has become an example of the rich getting richer from the poor getting poorer. 

With eve-y merger they have made, they have lost more interest in serving 

individuals. People like me can’t bring Fleet the money that its corporate customers 

can, but we’re not making them lose money either. We pay our bills and we pay 

our rents. In the same way, we could pay a mortgage and we can keep a 

checkbook. 

So I am asking the Federal Reserve to carefully consider Fleet’s current merger. For 

every employee they will layoff and every bank branch that will be closed., there are 

hundreds of consumers who will have less access to banking services. In low and 

moderate income neighborhoods we need more banks, not richer ones. 

AUIRN TFSTTMCWY for Fmbral Rm=rv~= H~nrino t-m Fleet-RnnlrRnctnn mcr~er N-FW YORK Paoe 3 

: .__-. ._. ._ : ,_ 
. 

JENNFER CARTER 

MASSACHUSETTS 

Hello. My name is Jennifer Carter. I have been banking with Bar&Boston for many 

moons--over twenty years. 

I am very concerned about the aftermath of the merger between Fleet and 

Bat&Boston. I am worried that they wilI cancel their contract with ACORN. After 

meeting with them yesterday, they said that they will be sitting down again with 

ACORN. But I am more concerned that this is just lip service. By turning their back 

on the ACORN program, Fleet is turning their back on our low income and 

minority communities. Have they forgotten that ACORN Housing Corporation 

borrowers made up over 30% of Fleet’s loans to low and moderate income 

neighborhoods in 1996? Have they forgotten that ACORN Housing helped Fleet 

increase their lending in low income neighborhoods by almost 90% between 1995 

and 1997? Have they forgotten that ACORN Housing is responsible for more than 

50% of BankBoston’s loans to Black and Latin0 borrowers in 1998, and responsible 

for 20% of BankBoston’s overall lending in that year? 

I think that Fleet has forgotten what ACORN has done to help them meet their 

obligations to the low income and minority community. But I would like to remind 

them again today. 

. --. ._. ._. I . __ .______,. _, . . .;..,._...,___.. _:- _, -- I-:- .:.-..: ___- ._ . . . . . . . . ..y......_- ::__ -:. ::. . . . 
If this merger goes forward, and Fleet does not renew its lending agreement with 

ACORN by August lst, I will be closing my account at Bar&Boston. I will also be 

encouraging my son to close his account at Fleet. And we, the members of 

ACORN, have already collected several dozen letters from other community 

residents saying that they are going to close their accounts as well. We will continue 

to collect these letters throughout the summer. 

So if Fleet is planning to keep taking deposits from our communities, but stop 

giving us loans, then we are going to cut their credit line too. This is our way of 

expressing our dissatisfaction with Fleet’s decision. They cannot continue to keep 

profiting from our deposits without putting back into our community. So that’s why 

I am here today. To bring to the Federal Reserve’s attention the urgency and the dire 

need for this program that is all about helping the low income community to 

accomplish the American Dream. Please do not rush your decision by allowing this 

merger. I believe extra time is needed for Fleet to meet with ACORN again as they 

have promised. You cannot let this merger go forward if it means that Fleet is 

allowed to walk away from its community reinvestment responsibilities. 

I realize that nothing can be accomplished unless God allows it. So I am praying 

that you let the Lord guide and lead you. Thank you. 

ACORN TF.STlMfMY fnr Fe&ml Re-e Hewino nn Fdwt-RnnCRmtnn meow MASSAcHl1SFTT.c Pam 13 
. 

ROSE BLAIN 

I 

MASSACHUSETTS 

Good afternoon. My name is Rose Blain and I live in Mattapan. I am working with 

ACORN and Fleet to buy my own home in Brockton. For a long time I wanted to 

buy a house but I didn’t believe that I could. I got information about ACORN from 

a meeting in Fields Comer in Dorchester, and I decided to participate in the 

program. The ACORN loan counselor Robert Davis helped me to check my 

husband’s credit, my pay stub, my income tax and my biIls. 

I work full time and many night shifts as a nursing assistant in a hospital pediatric 

ward. Even though my income is only $22,000 dollars a year, ACORN IIousing 

Corporation’s program with Fleet bank gave me the flexibility to have a low down 

payment and a good mortgage rate. I was able to get a pre-qualifying 

letter for a house, based partly on my plan to rent out a floor to another family. 

The house I am trying to buy is in Brockton. I will be living there with my husband 

and four kids. It is my dream to own my own home and be my own boss. 

Even with ACORN’s program it has taken me two years to be ready to buy a home. 

Without this program a lot of people wilI miss the opportunity to have their dream. 

To me it is horrible that Fleet is hurting so many people who would like to get a 

house. I want many families to get the same opportunity that we did working with 

ACORN and Fleet. 

There is an old saying: “If it ain’t broke, don’t fur it.” Well, this program ain’t 

broke! So please don’t take it away from the people who need it. 

Thank 

you.@nOnn@nn~nn0~8nnnnnnnnn~@~~@nnnnnnnnnnnnn uuu-lv-- vYYu--Yuu--uu 

cl 
KENHALL 

8 

MASSACHUSETTS 

Good morning. My name is Ken Hall and I live in Dorchester. I was able to buy my 

home through the ACORN Housing program with Fleet. After I bought my house, 

I started caring a lot more about the way my neighborhood looked and how safe it 

was. Here I was--a homeowner and a taxpayer--and the city wasn’t giving our 

moderate income, mostly minority neighborhood in Dorchester the same services as 

the wealthy, white neighborhoods in Beacon Hill or Back Bay were getting. So I got 

together with some of my neighbors and we started letting city officials know that 

we care about our community and our children and our property, and wanted to see 

our streets safe and clean. 

Our civic involvement paid off--we won funding for a new streetlight at a 

dangerous intersection where children had been hurt crossing the street. We met 

with the police to make sure our streets are safe at night. And we won clean-up of a 

bunch of vacant lots that were full of trash and dangerous junk. In the process, 

many members of the community came together and started to watch out for each 

other and each others’ children. 

When you own your home, you care about your neighborhood and you work hard to 

improve it. Thanks to ACORN Housing’s program with Fleet, more people were 

becoming homeowners and our low income and minority neighborhoods were 

finally starting to look better. But now that Fleet is getting bigger and more 

arrogant, they’re trying to walk away from us. Let me tell you why this is such a 

mistake. 

Fleet Bank has been a huge lender in Boston BECAUSE of the ACORN Housing 

program and other programs like ours. More than 30% of Fleet’s loans in Boston to 

minorities and low income people in the last few years have come from ACORN. 

Fleet has now become such a dominant player in the Boston mortgage market that 

them walking away is going to have a really damaging effect. Especially because 

most of the other lenders in town have such a bad record of lending to low income 

and minority neighborhoods. 

If Fleet dumps the ACORN program and stops making the kind of loan that they 

made to me and my family, their numbers are going to stop looking so good. And 

when banks like Fleet stop making high-quality conventional loans to our 

neighborhoods, the B & C lenders come in with their outrageous interest rates and 

fees and their aggressive telemarketers and misleading advertising. A lot of these 

ACORN TF.STlMfWY fnr FderaI R pcprve Hewino nn Fleet-RankRnftnn merow MASSACHlTSFlTS Paup If 
outfits have gotten in big trouble for shady dealings, as Fleet well knows because 

they were in the subprime lending business for awhile. 

If you look at Fleet’s past history with mergers and community lending, the picture 

is pretty grim for low income and minority neighborhoods. Every time Fleet has 

merged the bank has gotten worse. If Fleet is allowed to merge with BankBoston 

while they waIk away from lending to minorities and low income people, they are 

going to get dramaticahy worse. And I guarantee you, if the Federal Reserve allows 

this merger today, you’ll be back here next year to downgrade Fleet’s CRA rating, 

the way Fleet’s entities have been downgraded in New Jersey, New York, and 

Connecticut. 

Fleet is going to dominate the Boston lending market. If they walk away from 

lending to our communities, who’s going to do it? Low income people and 

minorities need access to credit so we can turn around our neighborhoods like I’m 

working to turn around mine. When Fleet turns its back on community reinvestment 

programs like the one they have with ACORN, we know we’re going to be seeing 

that red line around our neighborhoods again real soon. 

Therefore, I am asking you to oppose the Fleet-BankBoston merger. 

AfWRN TF.STlMcIW fnr F~Iewl RWMW Hemino m Fhet-RnnkRnann m~rm=r MA.S.SAtWll.SFTTS Pnoe 14 
i 

ELNORA THOMPSON 

MASSACHUSETTS 

Hello, my name is Elnora Thompson. I am African-American, a single mother and 

a single grandmother, and I live in Dorchester near Codman Square. I want to tell 

you about trying to get a loan in this town when you are all these things. 

When my husband and I divorced and I lost my home, I knew I didn’t want to raise 

my youngest in some tiny apartment. I wasn’t comfortable living in somebody 

else’s home--I wanted my own house. And I wanted a garden. I didn’t think it 

should be too hard to prove that I would be a good lending risk. After all, I had 

worked full-time for the phone company for almost 25 years at that time. 

So I set out to buy myself a home. First I went to my credit union, but they wanted 

20% down, and I didn’t have that kind of money. I applied for a loan with 

Powderhouse Mortgage in SomervilIe, but when I called to see what was happening 

with my application, the girl there told me that they didn’t want to be bothered with 

people from Dorchester. At that time, it was very hard to obtain a mortgage in my 

neighborhood, even if you had money. 

And then I went to Fleet. Now this was before they had their program with 

ACORN. But they had some kind of local program--or so I thought. A very nice 

young lady came to help me fti out my application, right at my apartment. Then she 

took my $250 deposit and I never heard from her again! I called and called, I called 

all over the place. I couldn’t get anyone to talk to me. Finally I found out my 

application had been sent out of state somewhere. And then I got a letter saying that 

I was not qualified for that lending program. But I never got my money back. 

What I realized was that they weren’t giving any mortgages in my neighborhood 

was redlining. 

It 

A few months later, an ACORN organizer knocked on my door. She told me how 

ACORN members were fighting against redlining and negotiating with the banks to 

start community reinvestment agreements. I joined ACORN that day and I probably 

spent every night for the next six months helping on the anti-redlining campaign. 

What was the result? Well, Citizen’s Bank stepped up to the plate and signed an 

agreement with ACORN IIousing Corporation which I believe they are still 

honoring to this day. They had flexible underwriting and didn’t make me put 20% 

down, and they looked carefully at all my records even when I had non-traditional 

credit. Any time I had questions I called my loan counselor at ACORN Housing, 

ACORN TFSTiMnNV for Fmh-21 Rea=nw Hemino nn Fleet-RnnkRncttnn mermv MASSArWITWTTS Pnoe 11 
and she would talk to her contacts at the bank. I got all the information I wanted--no 

more runaround. 

A few months later I got my loan--one of the very fast loans in the new ACORN 

Housing Corporation Program. I even got a grant fi-om the city for closing costs 

through a program that ACORN worked out. And then Citizen’s decided they 

wanted me to be their poster child, and they threw me a housewarming party. I 

thought I had died and went to heaven. 

Now I’ve lived in my house for five years, and I rent my downstairs apartment to a 

tenant using Section 8 vouchers. My street has changed a lot now that most of us 

are finally homeowners. And I have a big garden full of vegetables and f?uit and 

flowers. 

It was ONLY because of the ACORN program that I got my house, and since Fleet 

joined the ACORN program, I know they have& treated other Black folks like they 

treated me. In fact, I happen to know that ACORN Housing did over 30% of Fleet’s 

loans to minority and low income borrowers in 1996. And the Bar&Boston program 

with ACORN Housing, which Fleet wants to downsize, did over 50% of the bank’s 

loans to Blacks and Latinos in Boston in 1998. 

Fleet’s lending to minority and low income borrowers has gone up dramatically 

since they started working with ACORN. But back before they started working 

with ACORN, their record on lending to minorities was BAD. In cities in 

Massachusetts where they’re NOT working with ACORN, their lending record to 

minorities is STILL bad. If Fleet won’t increase their participation in the ACORN 

program while they increase their size and increase their profits, then they shouldn’t 

be allowed to merge with BankBoston. 

If Fleet is going to go back to ignoring our communities, then I ask the Federal 

Reserve to ignore this merger application. 

Thank you. 

AfTlRN TFSTTMCIW fnr Fm-h-al Recm-ve Hem-ino nn Fleet-RankRnctnn nwrm-r MA.<SACHlT.SFTTS Pncw 17 
Ms. Maude Hurd 

National President 

ACORN 

1453 Dorchester Avenue 

Dorchester, MA 02122 

July 5,1999 

Bob Brady 

Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave. 

Boston, MA 02106 

Dear Mr. Brady: 

The Association of Community Organizations for Reform Now (ACORN) is writing in 

oppostion to the proposed merger between Fleet Financial Group and Bar&Boston 

Corporation. 

This merger between the two largest banks in New England would further consolidate the 

Northeast’s already concentrated financial industry under the control of Fleet Financial 

Group. The merged institution would be a regional megabank, dominating local markets and 

controlling more than l/4 of ever dollar held by New England banks and thrifts. It is vitally 

important that a bank of this size and with this level of market influence fulfill its obligations 

to serve all neighborhoods and meet the credit needs of all communities. 

Fleet’s actions show that it has not and will not comply with this basic standard. 

The Fleet public relations department must believe that if they repeat the bigger is better 

mantra of “one plus one is greater than two” often enough, they can obscure the facts of their 

lending performance. Fleet has already demonstrated the devastating impact that their 

previous mergers have on the flow of credit to local communities. Since acquiring Shawmut 

and Natwest in 1995 and 1996 respectively, the new, larger Fleet has had a dramatic decline in 

its lending to minority borrowers, low and moderate income families and neighborhoods, and 

communities of color, compared to the total lending of the separate banks before the merger. 

This steep drop is not an isolated occurence; it is evident throughout Fleet’s markets, on a city, 

county, and state level. 

In Boston and Bridgeport, the downward trend of Fleet’s lending has been tempered by its 

participation in lending programs with local non-profit partners, including ACORN Housing 

Corporation. ACORN Housing Corporation, alone, has been responsible for 30-80% of Fleet’s 

minority lending in recent years in Massachusetts and Connecticut communities. Now, as it 

proposes to grow even larger, Fleet is withdrawing from the agreements and practices which 
have resulted in thousands of mortgages to minorities, single parents, recent immigrants, and 

lower income buyers. 

The Fleet-ACORN Housing Corporation partnership and programs like it have been crucial in 

bringing capital and credit into low income minority neighborhoods. For most Americans, 

homeownership is the single biggest source of wealth. It means the difference between living 

paycheck-to-paycheck and building equity for yourself and your family. Homeownership is 

even more crucial for the stability and economic growth of minority communities. Minority 

homeowners hold 75% of their wealth in home equity. The difference between owning and 

renting is staggering for African-Americans: the average Black homeowner’s net worth is 

$48,300, while for the average renter it is only $500. 

Homeownership helps the individual homeowner,. but it also helps the community. 

Homeowners are much more likely than renters or landlords to protect and improve their 

properties. There is more stability and less crime in neighborhoods of owner-occupied homes, 

and a greater involvement in community and civic activities of all kinds. 

With ACORN Housing Corporation’s Fleet agreeement and others like it, a positive shift in 

rates of minority homeownership was taking place. In the early and mid 1990’s, the 

percentage growth of minority homebuyers was greater than that of whites for the first time 

ever. These programs were helping Massachusetts and Connecticut neighborhoods achieve 

the American Dream of homeownership, while helping Fleet gain significant market share in 

minority lending. 

But as the 1990’s draw to a close, we are starting to see a trend toward less lending to minority 

and low income census tracts. As banks like Fleet grow larger and less accountable to local 

communities, they walk away from innovative programs and begin to use cookie-cutter 

formulas which try to fit everyone into a white-middle class ideal of good credit. 

If this merger proceeds, Fleet will be the largerst mortage originator by far in Boston, 

Bridgeport, and many other cities across the Northeast. When they turn their back on 

programs such as with ACORN Housing Corporation, a program that is responsible for an 

enormous part of Fleet’s minority lending, they are turning their backs on our communities. 

Without these kinds of programs, our neighborhoods don’t stand a chance. 

We have already seen the decline in credit to underserved areas which resulted from Fleet’s 

previous acquisitions. There is no reason to think that history will not repeat itself with this 

merger. Fleet’s termination of the successful partnerships in Boston and Bridgeport will only 

accelerate the downward trend in Fleet’s low and moderate income and minority lending. 

Our communities cannot afford to have Fleet swallow up yet another bank, while ignoring its 

community invesment obligations. 
Fleet and Bar&Boston should not be allowed to merge without pledging to continue existing 

community lending agreements and without a significant strenghtening of their commitment 

to maintain and increase the flow of credit to lower income and minority communities. 

Fleet and ACORN Housing Corporation in Boston and Bridgeport 

ACORN Housing Corporation provides individual counseling for low and moderate income 

and minority buyers to assist them in purchasing a home. AHC counselors work with 

potential buyers’ household income, debts, credit, savings, and employment history to identify 

what steps are necessary to qualify for a mortgage and to help home buyers take these steps. 

In addition to working on their specific situations in the individual counseling, program 

participants also take AHC’s home buyer education classes to help them understand what is 

involved in buying and owning a home. These classes include a credit and budgeting 

workshop which teaches financial management, and in Boston and Bridgeport, AHC conducts 

specialized Landlord Training classes to prepare new homeowners for the responsibilities of 

owning a two or three unit building, which is common in low and moderate income 

neighborhoods. 

ACORN Housing Corporation promotes its program through community meetings in low and 

moderate income neighborhoods, churches, the ACORN Bankfair, and through real estate 

agents who work in low and moderate income neighborhoods, in order to reach traditionally 

underserved communities. 

In December 1995, Fleet Bank agreed to an ambitious mortgage lending program with 

ACORN and ACORN Housing Corporation, which combined mortgage underwrting 

standards responsive to low and moderate income buyers, below market pricing, and housing 

counseling to create a state of the art lending program. The program was based on the lending 

agreement ACORN Housing Corporation had with Shawmut Bank, which Fleet was 

purchasing at.the time. The program covered Massachusetts and Connecticut. 

Fleet agreed to use underwriting guidelines, developed by ACORN Housing Corporation 

(AHC), which, when coupled with intensive housing counseling and home buyer education, 

can help many nontraditional buyers qualify for mortgages and become successful 

homeowners. 

ACORN and ACORN Housing Corporation have found traditional mortgage underwriting 

standards often failed to recognize the income, savings, credit, and employment histories of 

low and moderate income and minority people. To remedy the problem, ACORN and 

ACORN Housing Corporation contracts with lenders to provide homebuyer counseling, 

financial management skills for buyers, delinquency counseling, and advice on underwriting 
which is more responsive to underserved buyers and pricing discounts to attract potential 

potential buyers and to make the products more affordable for lower income buyers. 

Some of the special underwriting flexibilities in the Fleet/ ACORN Housing Corporation 

product include: 

l Sources of income common in lower income communities are acceptable, 

including boarder rent, foster care, voluntary child support, food stamps, and 

pooling of incomes from several family members. 

l People who do not have traditional credit histories, such as credit cards or car 

loans, can qualify based on timely rent and utility payments. 

(The standard Fleet product requires three nontraditional credit references, 

disqualifying many buyers, such as, for example, a young couple whose utility 

payments are included in their rent and so only have two credit references: rent 

and telephone) 

l Buyers can contribute as little as one percent of the mortgage for the 

downpayment, with the remainder coming from grants or gifts. 

l Buyers whose available savings are used up for downpayment and closing costs 

are not required to have extra money held back as a reserve requirement. 

AHC’s partnership with Fleet has been extremely successful, helping more than 1,000 

homebuyers with over $120 million in mortgages and providing increased access to 

homeownership for single parents, recent immigrants, lower income buyers, and people who 

don’t qualify for traditional mortgage underwriting, but who are still responsible and pay their 

bills on time. 

In 1997, ACORNHousing Corporation alone recruited, counseled, and referred a third 

of Fleet’s conventional loans to African-Americans and La tinos in Suffolk County (Boston, 

MA) and almost two-thirds of FIeet’s conventional Ioans to African-Americans and La tinos 

in the Bridgeport (CT) MSA. 

Despite these achievements, Fleet is walking away from this successful partnership at the same 

time that it proposes to become the 8th largest bank in the country. Fleet has informed 

ACORN Housing Corporation that on July 31,1999, it will terminate this program which has 

made a significant contribution to low and moderate income and minority communities in 

Massachusetts and Connecticut. 

BankBoston and ACORN Housing Corporation in Boston 
Bankboston also has a successful mortgage lending program with ACORN Housing 

Corporation. This program features mortgage products designed for low and moderate 

income and minority borrowers, housing counseling, discounted pricing, and community 

based marketing programs. In 1998, Bar&Boston funded 255 mortgages in the Boston area 

valued at $35,700,000. Bar&Boston has not indicated what the future of the program will be 

post-merger. However, Bar&Boston is the institution to be acquired; and given the 

termination of a similar program at Fleet, the AHC/BankBoston program is likely to be 

terminated. 

The ACORN Housing Corporation sends more loans to Fleet and Bar&Boston than any other 

Boston lenders, and with this merger the two top AHC programs will be eliminated. 

As described below, we have serious concerns about Fleet’s lending not only in Boston and 

Bridgeport, but throughout the Northeast and across the country, and fear that their lending 

will only worsen after this merger. The trend in recent years as Fleet has grown and 

incorporated other institutions has been a decline in lending overall and a steeper decline in 

lending to low and moderate income and to minority borrowers. This decrease would have 

been even worse were it not for the work of local partners, such as ACORN Housing 

Corporation. Fleet’s refusal to continue this single program will result in an even more 

precipitous decline and suggests a shift in the bank’s direction which will only amplify already 

existing problems. 

Fleet’s Failure to Meet Credit Needs with Post-Merger Lending Decline 

Boston 

In Boston, as in most cities where Fleet does business, Fleet is abandoning low to moderate 

income people, minorities, and their communities. The numbers tell the story when looking at 

loan applicant race, income, and the characterisitics of census tracts where Fleet lends to. As 

Fleet grows bigger, it tends to do more lending to upper-income, white borrowers and their 

communities. % 

RACE 

Fleet’s merger with Shawmut has resulted in a decline in lending to minority home buyers. In 

1995, Fleet National Bank, Fleet Mortgage, and Shawmut Mortgage made a combined total of 

636 conventional and FHA loans to African-Americans and 341 loans to Latinos in the Boston 

MSA. In 1997, the merged institution made 48% fewer loans to African-Americans, 331, and 

55% fewer loans to Latinos, 155. 

Because of its size and dominant market share in Boston, Fleet must play a vitally important 

role in the area’s minority lending in the area. Fleet made 23% of the MSA’s conventional 
loans to African-Americans and 20% of the area’s loans to Latinos. As discussed above, one of 

the principal reasons for this has been Fleet’s participation in community lending programs 

with local non-profit partners. That’s why it is essential that Fleet maintain these programs. 

Further cuts in Fleet’s lending will seriously harm Boston’s minority communities 

The performance by Fleet Real Estate Funding, the successor to Fleet Mortgage, is indicative of 

what Fleet Bank’s lending would be like without its community partnerships. In 1997, in the 

Boston MSA, Fleet Real Estate Funding denied 31% of its African-American applicants for 

conventional and FHA loans and 28% of its Latin0 applicants, while turning down only 12% of 

its white applicants. Black and Latin0 borrowers were 2.6 and 2.3 times more likely, 

respectively, to be rejected than white applicants. 

In addition, Fleet Real Estate has decreased the share of its lending to minorities. In 1995, the 

mortgage company made 9.3% of its conventional and FHA loans to African-American 

homebuyers and 6.4% to Latin0 buyers. In 1997, the share of mortgages received by AfricanAmerican and Latin0 borrowers had dropped to only 7.8% and 4.0%. 

INCOME 

Low and moderate income borrowers have been deeply impacted by the decline in credit since 

the merger with Shawmut. Their access to credit appears to be growing even worse. 

In 1996, Fleet National Bank and Fleet Real Estate made 1,116 conventional loans to low and 

moderate income borrowers in the Boston MSA. In 1997 this number fell 29% to 791, a drop 

several percentage points higher than the decline to upper income borrowers. These numbers 

would be even less favorable to low and moderate income buyers if it were not for Fleet’s 

community partnerships. 

In the city of Boston in 2997 Fleet made 323 loans to IO w and 

moderate income borrowers. We can identify 84 of those loans 

to Iow and moderate income neighborhoods, or 26%, that were 

made through the ACORNHousing Corporation. 

Without the bank and its local partners, Fleet’s extension of credit to low and moderate income 

borrowers would have practically disappeared. Almost half of Fleet’s conventional loans are 

made by Fleet Real Estate, whose lending record paints a far grimmer picture for the fate of 

lower income home buyers. The overall decline in Fleet RE’s lending has not been elt by all 

borrowers equally. While Fleet RE cut in half their loan origination to low and moderate 

income borrowers from 1996 to 1997, it didn’t impose the same kind of austerity measures on 

its upper income borrowers, cutting these loan originations by only a quarter. 

Low and moderate income borrowers also saw their share of Fleet RE’s conventional loans 

drop from 35.6% in 1996 to only 27.7% in 1997. Fleet RE’s lending shifted toward upper 
income borrowers, who saw their share of Fleet’s conventional loans increase from 36.3% in 

1996 to 42.1% in 1997. 

Fleet Real Estate accomplished this shift in its lending by denying low-income borrowers 2.8 

times as often as upper income borrowers and rejected moderate income borrowers 2 times 

more than upper income borrowers in 1997. 

GEOGRAPHIC DISTRIBUTION 

All Fleet affiliates combined denied 24% of the applications from integrated and minority 

census tracts, compared to only 14% of loans in census tracts with less than 20% minority 

population, making integrated and minority neighborhoods 1.7 times more likley to have 

applications rejected than predominately white neighborhoods. Fleet denied 25% of 

applications from low-income census tracts, compared to only 16% of applications in upperincome tracts, a 1.6 times difference. 

These numbers would be far worse for lower-income and minority communities if it were not 

for the work of the local partners who worked with Fleet National Bank. 

We can preview what Fleet’s overall performance would be without these community partners 

by looking at Fleet Real Estate Funding. In the Boston, MSA, Fleet RE Funding only made 11% 

of its almost 1,000 conventional and FHA mortgages in integrated and minority census tracts 

and less than 2% of its loans in low-income census tracts. 

This minimal lending can be attributed in part to the enormous disparity between Fleet Real 

Estate’s rejection rates of loans in lower-income and minority neighborhoods and its rejection 

rates in upper-income and white neighborhoods. While Fleet Real Estate denied a third of all 

applications in minority census tracts (32%), it only turned down 14% of applications in 

predominately white tracts, making minority neighborhoods 2.3 times more likely to be 

denied than white neighborhoods. 

Within census tracts of the same income level, Fleet Real Estate was up to 2.3 times as likely to 

deny applicants from the tracts with a greater minority population than from those tracts that 

are predominately white. Fleet RE denied one out of every four applications (25%) from 

moderate income census tracts that are integrated or minority, but only one out of nine 

applications (11%) from moderate income census tracts that are almost entirely white. Fleet 

RE denied 30% of applications from middle-income minority census tracts, but only half as 

many, 15%, of the applications from middle-income white . 

In addition to Fleet’s history of a post-merger decline in loans, its movement away from 

community lending, and its refusal to continue the ACORN Housing Corporation Lending 
Program, there are other reasons to be concerned that this merger will have a devestating 

effect on Boston’s lower income and minority families. BankBoston has also had a lending 

program with AHC, a partnership which is now jeapordized by the merger. 

BankBoston made 1,254 conventional Ioans Tn the Boston MSA 

in 1998. AHC was responsible for 255 of them, 20.33%. 316 of 

BankBoston’s loans were made to BIack and Latin0 borrowers. 

163 of these, 52.58%, were made through AHC. 

ACORN Housing Corporation has not been given any indication that this program will 

continue. Given Fleet’s intentions to abandon its own program with AHC, it stands to reason 

that the Bar&Boston program, which has similarly flexible underwriting guidelines will also be 

eliminated. 

In 199z ACORNHousing Corporation was responsibIe for 43.8% of the 

combined to taI of all the conventional Ioans made by FIeet and BankBoston 

in the Boston MSA. 

Bridgeport 

RACE 

In 1995, Fleet National Bank, Fleet Mortgage, and Shawmut Mortgage made 81 conventional 

purchase loans to African-Americans and 108 loans to Latinos. By 1997, this number had 

fallen 58% to 34 loans to African-Americans and 83% to a paltry 18 loans to Latinos. 

Minorities not only saw a large decrease in the number of loans they received, but also in the 

relative share of the merged institution’s lending. In 1995,41% of the combined total of Fleet 

and Shawmut’s mortgages were made to African-American and Latinos. In 1997, they 

received only 26.5% of the mortgages -- in an MSA where African-Americans and Latinos 

make up more than half of the population (53.1%). At the same time, the new, larger Fleet 

was making a greater portion of its loans to white buyers. In 1995,53.2% of Fleet and 

Shawmut’s loans went to white borrowers. In 1997, this share climbed to 62.2% of the loans. 

These shameful numbers would have been even less had it not been for Fleet’s partnership 

with the ACORN Housing Corporation. 

Out of FIeet’s I42 conventional Ioans made in 1996 to AfricanAmericans and La tinos, 94 of the loans, 66.2%, were a re.suIt of 

the partnership with AHC. Of FIeet ‘s 52 Ioans made to AfricanAmericans and La tinos in 2997 AHC was responsible for 32 of 

the loans, 62%. 
In short, without this partnership, Fleet would have made almost no loans to African 

American or Latin0 borrowers in Bridgeport. 

Even with the aid from AHC, Fleet’s lending to minorities and lower income neighborhoods is 

still seriously problematic. Despite the fact that the Bridgeport MSA population’s is more than 

half African-American and Latino, 81% of Fleet’s conventional loans were made in 

predominately white census tracts (less than 20% minority population). Only 11% of Fleet’s 

conventional loans were made in low and moderate income census tracts. 

Fleet’s geographic distribution of loans would have been even worse were it not for its 

partnership with the ACORN Housing Corporation. 

There are also significant disparities in the distribution of Fleet’s rejections. Borrowers in tracts 

with more than 50% minority population were still 1.4 times more likely to be rejected for a 

conventional loan than borrowers in tracts with less than 20% minority population. 

Applicants from moderate income tracts were 1.7 times more likely to be denied than 

applicants from upper income tracts. 

Applicants from moderate income tracts with more than 50% minority population were: 

- 2 times more likely to be denied than applicants in middle income tracts with less 

than 20% minority population; 

- 2.3 times more likely to be denied than applicants in upper income tracts with less 

than 20% minority population; 

- 2.7 times more likely to be denied than applicants in middle income tracts with 20- 

49% minority population; and 

- 3.7 times more likely to be denied than applicants in moderate income tracts with 

20-49% minority population. 

As in Boston, because of its size and market domination, Fleet has an essential part in the flow 

of credit to minority communities. In 1997, Fleet made 12.4% of all the conventional loans 

originated to African-American in the Bridgeport MSA and 8.7% of all the convenationl loans 

originated to Latinos in the MSA. 

That’s why it is so vitally important to local communities that Fleet Bank continue to work 

with its non-profit housing partners. We can preview what Fleet’s overall performance would 

be without these community partners by looking at Fleet Real Estate Funding. 

In the Bridgeport MSA, which is more than a quarter African-American, Fleet RE Funding 

only made 1 conventional loan out of nearly 100 to an African-American borrower and denied 

African-American applicants at a rate five times greater than it denied white applicants. Fleet 

RE only made 4.2% of its conventional loans in low and moderate income census tracts and 

only made 8.3% of its loans in integrated and minority tracts. 
Although ACORN Housing Corporation’s work in Connecticut is primarily in Bridgeport, 

where AHC is responsible for approximately two-thirds of Fleet’s African-American and 

Latin0 lending, AHC has made a significant contribution to Fleet’s minority lending in other 

areas. 

AHC was responsibIe for 30 of Fleet’s 38 Black and Latin0 conventional 

loans in 1996 (79%) and 8 of the 19 BIack and La tine Ioans in 

1997 (42 %) in the Statiord-Norwalk MSA. 

In the New Haven-Meridan MSA, AHC was responsible for 5 

of Fleet’s 2 9 conventional Ioans to BIack and La tino borrowers 

in 1996 (26%) and 5 of Fleet’s 9 Ioans to Blacks and Latinos in 

2997 (56%). 

Given the role of ACORN Housing Corporation in Fleet’s lending, Fleet’s termination of its 

partnership with AHC amounts to a near complete abandonment of minority borrowers in 

these markets. 

New York City 

The Fleet merger with Natwest in 1996 may have benefited someone in New York, but it only 

hurt minorities, lower income families, and low to moderate income and minority 

neighborhoods in New York City. 

RACE 

The Fleet-Natwest merger resulted in a drastic decline in lending to minorities. In 1995 the 

separate institutions made a combined 492 conventional and FHA mortgages to AfricanAmericans and 257 mortgages to Latinos. In 1997, the merged institution made 77% fewer 

loans to African-Americans, only 113, and 73% fewer loans to Latinos, only 70. 

One part of this decrease is attributable to the fact that Fleet did not maintain the com.munity 

lending commitments of the banks with which it merged. NatWest had a lending agreement 

with the New York ACORN Housing Corporation which was discontinued by Fleet. The 

agreement included a highly successful underwriting program and loans at 1% below the 

market interest rate. AHC helped NatWest reach populations that were new to the bank, 

break into the large, underserved Latin0 community, and build relationships with other 

community groups and local minority churches. 
Even without including Natwest’s loans, Fleet’s own lending to minorities and low-income 

buyers has dropped significantly. In 1995, Fleet Mortgage made 369 conventional and FHA 

mortgages to African-Americans and 191 to Latinos. In 1997, those numbers for Fleet Real 

Estate Funding, the successor to Fleet Mortgage, were only 112 mortgages to AfricanAmericans and 70 to Latinos. This decrease in lending was not felt the same by all borrowers. 

While the number of loans to African-Americans fell by 70% and and lending to Latinos 

decreased 63%, loans to whites only declined 13%. 

African-Americans and Latinos were disproportionately effected by Fleet’s decline in lending 

as Fleet shifted its lending priorities. In 1995, more than half of Fleet Mortgage’s loans were to 

African-Americans and Latinos -- 53%. In 1997, this portion fell to only 29%. Meanwhile, the 

share of Fleet’s mortgages to whites grew from 34% in 1995 to 52% in 1997. 

At the same time that Fleet was decreasing its minority lending, it was increasing its minority 

denials. In 1995, Fleet Mortgage denied 9.1% of its conventional African-American applicants 

and 11.5% of its Latin0 applicants. In 1997, the African-American denial rate had skyrocketed 

three times higher to 30.3% and the Latin0 denial rate had more than doubled to 25%. 

Whereas in 1995 only 1 out of every 11 African-Americans and 1 out of every 9 Latinos were 

denied, in 1997 Fleet denied almost 1 out every 3 African-Americans and 1 out of every 4 

Latinos. 

INCOME 

Lower income borrowers have also been the most affected by Fleet’s lending decline. From 

1996 to 1997, Fleet’s conventional and FHA lending to low and moderate income borrowers 

fell by more than half -- 52% -- from 129 loans to only 62. Fleet spared upper income 

borrowers from this withdrawal of credit, decreasing loans to upper income buyers a 

relatively minor 8% -- from 433 loans to 399. 

Fleet’s conventional lending to low and moderate income borrowers is virtually non-existent. 

Only 10% of their loans were made to borrowers with incomes below 80% of the area median 

and only a single loan (l/10 of 1 ‘/) 0 was made to a borrower whose income was below 50% of 

the median. 

GEOGRAPHIC DISTRIBUTION 

Fleet’s mortgage lending has been concentrated in higher income, predominately white census 

tracts. Only 12.7% of Fleet’s conventional loans in 1997 were made in low to moderate income 

census tracts. More than half (56%) of Fleet’s conventional loans were made in census tracts 

that were more than 80% white. This by no means represents balanced service to all New York 

neighborhoods. 
Even without including Natwest’s loans, Fleet’s own lending to minorities and low-income 

buyers has dropped significantly. In 1995, Fleet Mortgage made 369 conventional and FHA 

mortgages to African-Americans and 191 to Latinos. In 1997, those numbers for Fleet Real 

Estate Funding, the successor to Fleet Mortgage, were only 112 mortgages to AfricanAmericans and 70 to Latinos. This decrease in lending was not felt the same by all borrowers. 

While the number of loans to African-Americans fell by 70% and and lending to Latinos 

decreased 63%, loans to whites only declined 13%. 

African-Americans and Latinos were disproportionately effected by Fleet’s decline in lending 

as Fleet shifted its lending priorities. In 1995, more than half of Fleet Mortgage’s loans were to 

African-Americans and Latinos -- 53%. In 1997, this portion fell to only 29%. Meanwhile, the 

share of Fleet’s mortgages to whites grew from 34% in 1995 to 52% in 1997. 

At the same time that Fleet was decreasing its minority lending, it was increasing its minority 

denials. In 1995, Fleet Mortgage denied 9.1% of its conventional African-American applicants 

and 11.5% of its Latin0 applicants. In 1997, the African-American denial rate had skyrocketed 

three times higher to 30.3% and the Latin0 denial rate had more than doubled to 25%. 

Whereas in 1995 only 1 out of every 11 African-Americans and 1 out of every 9 Latinos were 

denied, in 1997 Fleet denied almost 1 out every 3 African-Americans and 1 out of every 4 

Latinos. 

INCOME 

Lower income borrowers have also been the most affected by Fleet’s lending decline. From 

1996 to 1997, Fleet’s conventional and FHA lending to low and moderate income borrowers 

fell by more than half -- 52% -- from 129 loans to only 62. Fleet spared upper income 

borrowers from this withdrawal of credit, decreasing loans to upper income buyers a 

relatively minor 8% -- from 433 loans to 399. 

Fleet’s conventional lending to low and moderate income borrowers is virtually non-existent. 

Only 10% of their loans were made to borrowers with incomes below 80% of the area median 

and only a single loan (l/10 of 1 ‘/) 0 was made to a borrower whose income was below 50% of 

the median. 

GEOGRAPHIC DISTRIBUTION 

Fleet’s mortgage lending has been concentrated in higher income, predominately white census 

tracts. Only 12.7% of Fleet’s conventional loans in 1997 were made in low to moderate income 

census tracts. More than half (56%) of Fleet’s conventional loans were made in census tracts 

that were more than 80% white. This by no means represents balanced service to all New York 

neighborhoods. 
Fleet has created this inequality, at least in part, by rejecting applicants from low to moderate 

income or minority census tracts at rates far greater than its rejections in upper income or 

white census tracts. One can predict the likelihood of receiving a loan from Fleet based on the 

income and racial make-up of the neighborhood. In its conventional lending, Fleet was 1.7 

times more likely to deny an application in a moderate income census tract than in an upper 

income census tract -- rejecting 39.3% of applicants in moderate income areas compared to 

only 23.7% in upper income areas. 

Fleet was 1.4 times more likely to deny an application in an integrated or minority 

neighborhood than in a white area -- rejecting 31% of applications from census tracts that had 

20% or greater minority population and only 22% of applications from tracts with less than 

20% minority population. 

Even when comparing census tracts of the same income level, but with different degrees of 

minority population, the inequality in Fleet’s lending is still present. Upper income 

neighborhoods with a minority population of 50% or greater were 1.8 times more likely to 

have applications denied than upper income neighborhoods with a minority population less 

than 50%. 

Applicants in moderate income tracts with 20-49% minority population were 2.6 times more 

likely to be denied than in moderate income tracts with less than 20% minority population; 

Nassau-Suffolk MSA 

Fleet’s mergers and subsequent decline in lending have also hurt lower-income and minority 

home buyers in the Nassau-Suffolk MSA. 

RACE 

From 1995 to 1997, this area experienced a sharp drop in minority lending. In 1995 the 

separate institutions of Fleet and Natwest made a combined 82 conventional and FHA 

mortgages to African-Americans and 69 mortgages to Latinos. In 1997, the merged institution 

made 63% fewer loans to African-Americans, only 30, and 62% fewer loans to Latinos, only 26. 

Even without Natwest’s loans, Fleet has reduced its loans to minorities and low-income 

buyers. In 1995, Fleet Mortgage and Fleet Bank NA made 60 conventional and FHA 

mortgages to African-Americans. In 1997, this number had been cut in half to only 30 loans. 

As in New York City, white borrowers saw a decline, but not nearly as severe as for AfricanAmericans. White loan originations fell 35% from 540 in 1995 to 348 in 1997. 

The share of Fleet’s loans received by minorities also decreased during this same period. In 

1995,8.7% of Fleet’s loans were made to African-Americans and 6.2% were made to Latinos. 
In 1997, the portion toAfrican-Americans and Latinos had fallen to only 6.5% and 5.6% of the 

loans, respectively. 

While the number of loans to minorities was falling, the denials of minorities was rising. In 

1995, Fleet Mortgage denied 13.5% of its conventional African-American applicants and 9.1% 

of its Latin0 applicants. In 1997, the African-American denial rate had increased to 18.4% and 

the Latin0 denial rate had more than doubled to 23.1%. 

INCOME 

Low to moderate income borrowes have borne the largest brunt of Fleet’s decline in lending. 

In 1996, Fleet and Natwest made 167 conventional and FHA loans to low and moderate 

income borrowers. In 1997, this figure fell to only 88 loans. 

Compared to its own past lending, Fleet’s lending to low and moderate income borrowers has 

dropped both in volume and as a percentage of its overall lending. In 1996,23.3% of Fleet Real 

Estate Funding’s loans were made to low and moderate income borrowers and 36.8% were 

made to upper income borrowers. In 1997, the share of loans made to low and moderate 

income home buyers had fallen to only 17.1% and the portion to upper income borrowers had 

climbed to 45.4%. 

Over 60% of low-income conventional loan applicants were denied by Fleet, making lowincome buyers almost 3.5 times as likely to be rejected as upper income buyers. More than a 

third of low and moderate income buyers were denied by Fleet -- 36.4% -- or two times the 

percentage of upper income borrowers. 

Only 15.7% of Fleet’s conventional loans in 1997 were made to low and moderate income 

borrowers, well below the market average among all lenders for the Nassau-Suffolk MSA, 

which was 18.5%. While Fleet was below average in lending to lmi buyers, it was above 

average in lending to the other end of the income scale. Almost half of Fleet’s loans went to 

upper income buyers, 48%, compared to 41% which was the average for all conventional loans 

in the MSA. 

GEOGRAPHIC DISTRIBUTION 

Fleet’s mortgage lending has been concentrated in higher income, predominately white census 

tracts. Not one of Fleet’s conventional mortgages was in a low-income census tract and only 

8.4% of its mortgages were in a moderate income census tract. A disturbing 90% of Fleet’s 

loans were made in census tracts that are more than SO% white. 

This imbalance in service is not solely due to a lack of applications from lower income or 

minority census tracts, but rather to much higher rejection rates for applicants from these 

neighborhoods. Borrowers in moderate income neighborhoods were 1.8 times more likely to 
be denied than borrwers in middle income tracts and 1.6 times more likley to be rejected than 

borowers in upper income census tracts. Fleet turned down 39% of the applications from 

moderate income census tracts compared to only 21% in middle income tracts and 24% in 

upper income areas. 

As the minority population in a neighborhood increases, so too does the likelihood of an 

applicant from that neighborhood being rejected. While Fleet turned down only 23% of 

borrowers in predominately white census tracts, it denied 35% of borrowers in integrated 

tracts and 41% in minority tracts, a 1.5 and 1.8 times greater denial rate respectively. 

Applicants in moderate income census tracts with 20-49% minority population were: 

- 2.1 times more likely to be denied than in upper income tracts with less than 20% 

minority population; and 

- 2.5 times more likely to be denied than in middle income tracts wtih less than 20% 

minority population. 

Applicants in middle income tracts with more than 50% minority population were: 

- 1.9 times more likely to be denied than in upper income tracts with less than 20% 

minority population; and 

- 2.3 times more likley to be denied than in middle income tracts with less than 20% 

minority population. 

Jersey City 

The merger between Fleet and Natwest has resulted in a sharp decline in minority lending. In 

1995, Fleet and Natwest had a combined total of 48 conventional and FHA loans to AfricanAmericans and Latinos. In 1997, this number had dropped 62.5% to only 18 loans. The 

decrease in conventional lendng was even greater. In 1995, Fleet and Natwest had a combined 

total of 37 conventional loans to black and Latin0 borrowers. In 1997, this number had 

dropped to almost nothing, decreasing 78.4% to a mere 8 loans. In an MSA where the 

population is more than half Black and Latin0 (53.9%), Fleet only made a third of its loans to 

black and latino borrowers. 

Not one of Fleet’s conventional or FHA loans was made to a low-income borrower, and only 4 

loans (10%) were made to a moderate income borrower. 

Not one of Fleet’s conventional or FHA loans were made in a low-income census tract and 

only 1 loan (2.5 O. / ) was made in a moderate income census tract. 

These numbers should not be too surprising, given that Fleet Bank, N.A. is headquartered in 

Jersey Ciy and fails to even provide a branch in the city. 
Fleet Real Estate Funding! Fleet’s Arm for Lending Inequality 

Cities fare even worse when Fleet operates alone, without community partners, such as in 

those cities served by Fleet Real Estate Funding. We have reviewed Fleet’s lending in five 

additional cities that have ACORN chapters. In these markets, Fleet Real Estate Funding has 

virtually abandoned lower income and minority home buyers and concentrated on upper 

income, white borrowers. In almost all cases it is also significantly worse than the average in 

these local markets. Fleet has small percentages of originations to minority and low-income 

home buyers, inordinately high rejection ratios for African-American and Latin0 applicants, 

and minimal lending in low-to-moderate income neighborhoods and integrated and minority 

census tracts. This prevalent pattern is worsening.. 

Philadelphia 

RACE 

In 1996, Fleet RE made 13.5% of its conventional and FHA loans to African-Americans and 

6.2% to Latinos. In 1997, these percentages plumetted to 4.1% and 3.3% respectively. The 

share of Fleet’s loans received by white borrowers increased from 70.5% in 1996 to 78.8% in 

1997. 

The 7.4% of Fleet’s conventional and FHA loans to African-Americans and Latinos is just half 

as much as the aggregate in the Philadelphia MSA in which all lenders made 13.9% of their 

loans to African-Americans and Latinos. 

The number of loans to African-Americans fell by 55% and to Latinos by 40%. At the same 

time, the number of loans to whites shot up by 29%. 

While Fleet RE was cutting back on the number of minority loans, it was stepping up its 

minority denials. In 1996, Fleet RE rejected 16.7% of African-American applicants. A year 

later, Fleet rejected 35% of African-American applicants. This increased restriction on credit 

was not across the board for everyone -- the denial rate for white applicants decreased from 

7.6% in 1996 to only 5.3% in 1997. In 1997, black applicants were almost 7 times more likely to 

be denied than White applicants and Latin0 applicants were almost 4 times more likely to be 

denied. 

These rejection ratios for African-Americans and Latinos are astronomical, especially when the 

average rejection ratios among all lenders in the MSA were 2.6 for conventional and 1.9 for 

FHA loans to African-Americans and 2.15 for conventional and 1.9 for FHA loans to Latinos. 

INCOME 
Fleet RE also appears to have turned its back on low to moderate income borrowers in favor of 

upper income borrowers. The number of conventional loans to low and moderate income 

applicants fell 25.4% from 1996 to 1997, while the number of loans to upper income borrowers 

increased 47.5 % . 

This disparity is also evident in Fleet’s rejections -- while Fleet was tightening credit for low 

and moderate income borrowers, increasing their denial rate from 13.2% to 15.8%, it was 

loosening credit for upper income borrowers, reducing their denial rate from 8.0% to 4.9%. 

This resulted in widening the gap of inequality. In 1996, low and moderate income borrowers 

were 1.6 times more likely to be denied than upper income borrowers. In just one year, the 

rejection ratio more than doubled and lmi buyers were 3.3 times more likely to be denied than 

upper income buyers. 

Area lenders made 30.8% of their conventional and FHA loans to low and moderate income 

borrowers, while Fleet only made 13.6% of its loans to lmi buyers. 

GEOGRAPHIC DISTRIBUTION 

Fleet RE also had very poor geographic distribution of its loans. Only 4.1% of Fleet’s 

conventional and FHA loans were in low and moderate income census tracts, compared to the 

average among all lenders who made 11.9% of their loans in these tracts. 

Applicants from lmi tracts were almost 6 times more likely to be denied than applicants from 

upper income tracts and 2.6 times more likely to be denied than applicants from middle 

income tracts. 

Only 2.3% of Fleet’s loans were in minority census tracts. Applicants from minority tracts 

were 4.6 times more likely to be denied than applicants from predominately white tracts. 

Denver 

RACE 

From 1996 to 1997, Fleet RE’s conventional and FHA lending to African-Americans and 

Latinos all but disappeared, dropping 71.6% from 88 loans in 1996 to 25 loans in 1997. The 

share of Fleet RE’s loans received by African-Americans and Latinos was cut almost in half 

from 10.7% in 1996 to 5.6% in 1997. 

This is not only significantly less than Fleet made in 1996, but it pales in comparison to the 

aggregate for the MSA in 1997 in which lenders made 10.2% of their loans to African-American 

and Latin0 borrowers. 
This imbalance in lending must be looked at in relation to Fleet’s increased rejection of 

minority applicants. In 1996, African-Americans were only 1.1 times more likely to be turned 

down for a conventional or FHA loan by Fleet than white applicants. In 1997, the rejection 

ratio had soared to African-Americans being 3 times more likely to be denied. This is also 

almost double the aggregate rejection ratio of other lenders in the MSA. 

INCOME 

Fleet’s low and moderate income lending fell 65% from 231 loans in 1996 to 81 loans in 1997, 

more than two times a greater decrease than in Fleet’s upper income lending. The share of 

Fleet RE’s loans which went to lmi individuals fell from 28% in 1996 to 18% in 1997, while the 

share of loans received by upper income borrowers rose from 29% to 50%. 

Fleet also made a smaller percentage of its loans to low and moderate income borrowers than 

other lenders. Fleet made 18% of its loans to lmi individuals, compared to the 34% of loans 

made by all area lenders. 

GEOGRAPHIC DISTRIBUTION 

The geographic distribution of Fleet’s lending is just as bad, with Fleet making less than 1% of 

conventional and FHA loans in low-income census tracts and less than 5% in moderate income 

census tracts. Applications from low and moderate income census tracts were 4.4 times more 

likely to be rejected for a conventional or FHA loan than applications from middle and upper 

income tracts. 

While Fleet made less than 6% of its loans in low and moderate income census tracts, 18.5% of 

purchase loans made by all Denver area lenders were in these tracts. 

Only 1% of Fleet’s conventional and FHA loans were made in tracts with more than 50% 

minority population, while 87% were made in tracts with less than 20% minority population. 

Conventional or FHA applicants from tracts with more than 50% minority population were 4.6 

times more likely to be denied than applicants from tracts with less than 10% minority 

population and applicants from tracts with 20-49% minority population were 2 times more 

likely to be denied than applicants from tracts with less than 10% minority population. 

Only 13% of Fleet’s loans were made in tracts with 20% or greater minority population, 

compared to the 23% of loans made by all area lenders. 

Dallas 

RACE 
From 1996 to 1997, Fleet RE’s conventional and FHA lending to African-Americans decreased 

45%, to Latinos decreased 4.0%, and to whites increased 20%. The share of Fleet RE’s loans 

made to African-Americans fell from 7.2% in 1996 to 3.5% in 1997, and the share to Latinos 

dropped from 5.2% in 1996 to 4.4% in 1997. At the same time, the share received by whites 

increased from 71.6% in 1996 to 75.5% in 1997. 

As in other cities, Fleet made fewer loans to African-Americans and Latinos than the market 

average. While only 3.5% of Fleet’s loans were made to African-Americans and 4.4% were 

made to Latinos, 6.4% and 7.1% of the loans made by all lenders in the MSA were made to 

African-Americans and Latinos respectively. 

Again we see a patten of decreasing minority originations and increasing minority denials. In 

1996, Fleet denied 38.2% of all black applicants and 15.8% of all white applicants for a rejection 

ratio of 2.4. In 1997, Fleet increased its denial rate of blacks to almost half, 44.8%, and 

decreased its denial rate of whites to 10.6%, resulting in an astronomical rejection ratio of 4.2. 

This is especially alarming considering that the aggregate rejection ratio for African-Americans 

in the Dallas MSA was 1.65 for conventional loans and 1.96 for FHA loans. 

INCOME 

Fleet’s low and moderate income lending fell 23% from 126 loans in 1996 to 100 loans in 1997, 

while its upper income lending increased 30% from 209 loans in 1996 to 272 in 1997. This 

resulted in a large change in the share of loans received by lower income buyers. In 1996, lmi 

borrowers received 27.5% of all of Fleet’s loans and upper income buyers received 45.6% of the 

loans. In 1997, lmi buyers’ share had fallen to l&9%, while the share of upper income buyers 

had grown to 52.4%. 

Fleet made a smaller percentage of its loans to low and moderate income borrowers than other 

lenders. While 24.9% of the loans made by all area lenders went to low and moderate income 

borrowers, only 18.9% of Fleet’s did. 

GEOGRAPHIC DISTRIBUTION 

Fleet made less than 1% of its conventional and FHA loans in low-income census tracts and 

only 6.3% in moderate income census tracts. This is significantly lower than the market 

average for the Dallas MSA in which all lenders made 22.41% of their loans in these tracts. 

Only 3.8% of Fleet’s conventional and FHA loans were made in tracts with more than 50% 

minority population. Applicants from these tracts were 2.4 times more likely to be denied 

than applicants from tracts with less than 10% minority population. 

Houston 
RACE 

From 1996 to 1997, Fleet’s conventional and FHA lending to African-Americans decreased 55% 

and to Latinos decreased 57.8%. The share of Fleet’s loans made to African-Americans and 

Latinos fell from 20.3% in 1996 to 18.7% in 1997. Not only is this a decline from 1996, but it is 

also a smaller percentage than the average among all area lenders who made 21.7% of their 

loans to African-Americans and Latinos. 

Again we see a patten of decreasing minority originations and increasing minority denials. In 

1996, Black applicants were denied 1.7 times more often than whites and Latin0 applicants 

were actually denied less often than whites. In 1997, these rejection ratios shot up to 2.1 for 

African-Americans and 1.9 for Latinos. 

INCOME 

Fleet’s low and moderate income lending fell 61.1% from 229 loans in 1996 to 89 loans in 1997, 

while its upper income lending only decreased 47.6%. This shifted the relative share of loans 

received by low and moderate income compared to upper income borrowers. In 1996, low 

and moderate income buyers received 20.6% of Fleet’s loans and upper income buyers 

received 48.2% of the loans. In 1997, the low and moderate income share had fallen to 16.8%, 

while the upper income share had increased to 53.1%. 

The 16.8% of Fleet’s loans received by lmi borrowers is signficantly lower than the 28.2% of 

loans by all lenders in the MSA which were given to low and moderate income buyers. 

GEOGRAPHIC DISTRIBUTION 

Fleet made less than 1% of its conventional and FHA loans in low-income census tracts and 

less than 5% in moderate income census tracts. This is significantly lower than the market 

average for the Houston MSA in which all lenders made 12% of their loans in these tracts. 

Applicants from census tracts with more than 20% minority population were 4.6 times more 

likley to be denied than applicants from tracts wth less than 10% minority population. 

Chicago 

Fleet has basically walked away from minority and low-to-moderate income lending in the 

Chicago MSA. 

RACE 
From 1996 to 1997, Fleet’s lending to African-Americans and Latinos dropped to near nothing. 

In 1996, Fleet made 59 conventional loans to African-Americans and 69 to Latinos. In 1997, 

this figure sunk to only 5 loans to African-Americans and 13 loans to Latios. A 91.6% and 

81.2% decrease respectively. While Fleet’s lending to whites also decreased, it was not nearly 

to the same degree. 

The share of Fleet’s conventional and FHA loans made to African-Americans and Latinos also 

fell drastically, while the portion received by white borrowers increased. In 1996,13.3% of 

Fleet’s loans went to African-Americans and 17.4% went to Latinos, with 59.5% going to 

whites. In 1997, the African-American share dropped to 5%, the Latin0 share decreased to 

13.4%, and the white share grew to 63.2%. 

African-American and Latin0 borrowers lost out even more on their relative share of Fleet’s 

conventional loans. The African-American share fell from 7.8% to 1.9% and the Latin0 share 

fell from 9.1% to 4.8%. African-Americans and Latinos received only 6.7% of Fleet’s 

conventional loans in an MSA that is 30.3% black and Latino. 

At the same time that Fleet was slashing its minority lending, it was expandng its minority 

denials. Fleet’s rejection ratio for Latin0 conventional loans nearly doubled, jumping from .95 

to 1.8, and the African-American rejection ratio skyrocketted from 2.1 to 3.4. This is more than 

the already unbelievably high 3.2 for all lenders in the Chicago MSA. 

INCOME 

Low and moderate income borrowers also suffered from the decline in Fleet’s conventional 

lending. Fleet’s loans to lmi individuals fell 71% from 243 in 1996 to 70 in 1997. While Fleet’s 

lending to upper income borrowers also decreased, the decline was 20 percentage points less 

than the decline to low and moderate income buyers. This resulted in a shift in the relative 

share that lmi borrowers received compared to upper income borrowes. LMI buyers’ share of 

Fleet’s loans dropped from 32% in 1996 to only 25.8% in 1997. Upper income buyers’ share 

grew from 37.7% in 1996 to 50.6% in 1997. 

GEOGRAPHIC DISTRIBUTION 

Fleet made only 1.25% of its conventional and FHA loans in low-income census tracts and only 

5.2% of its conventional loans in low or moderate income census tracts. Conventional 

applications from low or moderate income tracts were three times more likely to be denied 

than applications from upper income tracts. 

Only 4.4% of Fleet’s conventional loans were made in census tracts wtih 50% or greater 

minority population. Applicants from these tracts were 1.8 times more likely to be denied 

than applicants from tracts with less than 10% minority population. 
Conclusion 

Fleet has had a dramatic decline in lending -- a decrease from the overall lending by the 

separate pre-merger institutions and a decrease in the lending of Fleet affiliates, themselves. 

This withdrawal of credit has been felt the most acutely by low and moderate income and 

minority families and neighborhoods, communities which have historically been ignored and 

discriminated against, and now, once again, abandoned. This slide in Fleet’s community 

lending is evident in the downgrading of several Fleet Banks from “Outstanding” CRA ratings 

in 1996 to only “Satisfactory” in their 1998 CRA exams. 

While Fleet’s history of acquisition and subsequent. lending diminution provides ample 

basis for predicting the results of this newest merger, Fleet has given us even stronger 

substantiation of our concerns. Fleet’s plan to terminate its highly successful lending program 

with ACORN Housing Corporation, which has had over 1,000 successful homebuyers, is a 

clear signal that Fleet intends to continue its trend of a decreasing community commitment, 

even in its largest markets, as it grows still larger. 

Fleet has already realized a tripling of its net income in just four years, hitting $1.3 billion in 

1997, while leaving local communities stranded without the credit they need to thrive. Now, 

Fleet projects $600 million in cost savings from the merger with Bar&Boston, at the same time 

that it intends to walk away from a successful program which serves lower income and 

minority families. 

The Federal Reserve Board should not permit Fleet Financial Group and Bar&Boston to merge 

without, at a minimum, commiting to continue their existing community lending agreements. 
Methodologv 

This report was prepared using Home Mortgage Disclosure Act (HMDA) released from the 

Community Right to Know Network for 1995 and 1996 and from the Federal Financial 

Institution Examination Council for 1996 and 1997. 1998 HMDA data was obtained from a 

study by Jim Campen, UMass/Boston. Data regarding the number of homebuyers through 

ACORN Housing Corporation (AHC) was obtained from Fleet Bank and AHC. 

This report analyzed applications, originations, and denials for conventional and government 

backed home purhcase mortgages (refered to throughout this report as FHA loans, although 

they may include VA or FmHA loans). Unless otherwise specified, the word “Fleet” refers to 

all affiliates, i.e. Fleet Bank, Fleet Real Esate Funding, Fleet National Bank, and Fleet Home 

Equity, and their respective lending. 

Denial/ rejection rates were figured by calculating the number of denied mortgage 

applications divided by the number of applicants from specified demographic groups. It does 

not include incomplete or withdrawn applications. 

Rejection ratios were determined by the rejection rate for one specificied group divided by the 

rejection rate of another group, e.g. the rejection rate of African-American applicants divided 

by the rejection rate for white applicants. The figure describes the increased likelihood that 

one demographic group is rejected for loans in comparison to another group. 
LaFreda Simuel 

54 2”1 Street 

Hamden, CT 06514 

June 29,1999 

To whom it may concern, 

1 am a fast-time homebuyer. I was able to purchase a two fatnily house on 

54 2nd Street, Hamden, CT through the Acorn Housing Program. My closing 

date was schedule for April 9,1999. Acorn assisted me tremendously in my 

&ox? to receive a loan from Fleet Bank. 

Working with Acorn I was able to present my application to Fleet Bank with 

little doubt. Acorn brings new customers like myself to Fleet Bmlc. I feel 

that Acorn and Fleet Bank work well together with assisting fist-time 

homebuyers. 

Sincerely, 

LzGreda Simuel 

** TOTAL FQGE. 02 m* 
June 30,1999 

Bob Brady 

Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave 

Boston, MA 02 106 

Dear Mr. Brady: 

I am writing to express my serious concerns about the proposed merger between 

Fleet Financial Group and Bar&Boston Corporation. This merger will create a regional 

megabank which will dominate local markets, controlling more than 114 of every dollar 

held by New England banks and thrifts. A bank this large must do a good job of meeting 

the credit needs of all of our commumtr ’ ‘es, and Fleet doesnot appear willing to live up to 

this standard. 

Where it operates alone, without commun&qutners, as for example in those 

cities served by Fleet Real Estate Funding , affiliates of Fleet have a terrible record of 

serving the credit needs of lower income and nonwhite-borrowers. In city after city, Fleet 

Mortgage overwhelmingly concentrates its loans in hiiher income census tracts, and in 

majority white census tracts. In Bridgeport, for example, in 1997 Fleet Real Estate 

Funding made less than 7% of their conventional loans in low and moderate income areas, 

and rejected African-Americans over five times moreoften than white borrowers. Over 

70% of loans made by Fleet National Bank were in census tracts were in areas where 

fewer than 20% of residents are members of minoriWhere Fleet has developed community lendingprograms with local partners, their 

record looks different. While the bank has continued&-reject minority borrowers at rates 

significantly higher than white borrowers, as a result of successful partnerships it has also 

in the past made a significant number of loans in sorneofthese communities. In 

Bridgeport, Fleets partnership with ACORN Housing Corporation has been responsible in 

recent years for pluralities and even majorities of all of the banks loans to low and 

moderate income borrowers, and to nonwhite borrowers. In 1997, for example, where all 

Fleet affiliates combined made a totalof 52 loans to African American and Hispanic 

borrowers in Bridgeport, 48 of the loans were made throud the AHC lending 

partnership. In short, without this partnership, Fleet would have made almost no loans to 

African American or Hispanic borrowers in our city. 

Now, as it proposes to grow still larger by merging with Bar&Boston, Fleet is 

walking away from this partnership. The bank has refused to continue the flexible 

underwriting and other practices which have made so many loans happen in Bridgeport. 

This refusal can only dramatically accelerate the existing downward trend of Fleets lending 
in underserved Connecticut communities. As Fleet has grown and incorporated other 

institutions, its total lending in Connecticut has declined, and that decline has been steeper 

in lending to low and moderate income and to minority borrowers. Between 1995 and 

1998 overall lending by Fleet fell-by 49% in the-&&Q that is lending by Fleet and 

Shawmut in 1995 compared with lending by Fleet, which had by then merged with 

Shawmut, in 1998). Lending to AfkknAmeric fell by a larger 62%, and 

lending to low and moderate income borrowers of all races fell by 55.1%. 

Fleet and BankBoston must make a serious commitment to turning this decline around, 

and to continuing and expanding successful community partnerships, not walking away 

from them. Without these changes, the Fleet / Bar&Boston merger will do significant 

harm to our communities. 

sincere1 y, 

cc: 

Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston MA 022 1 l-2000 

Jennifer Johnson 

Secretary of the Federal Reserve Board 

20th & Constitution Ave. NW 

Washington, DC 2055 1 
June 30, 1999 

Bob Brady 

Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave 

Boston, MA 02 106 

Dear Mr. Brady: 

I am writing to express my serious concerns about the proposed merger between 

Fleet Financial Group and BankBoston Corporation. This merger will create a regional 

megabank which will dominate local markets, controlling more than l/4 of every dollar 

held by New England banks and thrifts. A bank this large must do a good job of meeting 

the credit needs of all of our communities, and Fleet does not appear willing to live up to 

this standard. 

Where it operates alone, without cornrnuni@a&ers, as for example in those 

cities served by Fleet Real Estate Funding , afbliates of Fleet have a terrible record of 

serving the credit needs of lower income and non white-borrowers. In city after city, Fleet 

Mortgage overwhelmingly concentrates its loans in higher income census tracts, and in 

majority white census tracts. In Bridgeport, for example, in 1997 Fleet Real Estate 

Funding made less than 7% of their conventional loans in low and moderate income areas, 

and rejected African-Americans over five times more often than white borrowers. Over 

70% of loans made by Fleet National Bank were in census tracts were in areas where 

fewer than 20% of residents are members of minority groups. 

Where Fleet has developed community lending programs with local partners, their 

record looks different. While the bank has continued to reject minority borrowers at rates 

significantly higher than white borrowers, as a result of successful partnerships it has also 

in the past made a significant number of loans in some of these communities. In 

Bridgeport, Fleets partnership with ACORN Housing Corporation has been responsible in 

recent years for pluralities and even majorities of all of the banks loans to low and 

moderate income borrowers, and to nonwhite borrowers. In 1997, for example, where all 

Fleet affiliates combined made a total of 52 loans to African American and Hispanic 

borrowers in Bridgeport, 48 of the loans were made through the AHC lending 

partnership. In short, without this partnership, Fleet would have made almost no loans to 

African American or Hispanic borrowers in our city. 

Now, as it proposes to grow still larger by merging with BankBoston, Fleet is 

walking away from this partnership. The bank has refused to continue the flexible 

underwriting and other practices which have made so many loans happen in Bridgeport. 

This refusal can only dramatically accelerate the existing downward trend of Fleets lending 
in underserved Connecticut communities. As Fleet has grown and incorporated other 

institutions, its total lending in Co nzcticut has-de&&, and that decline has been steeper 

in lending to low and moderate income and to minority-borrowers. Between 1995 and 

1998 overall lending by Fleet fellby- 49% in thestate that is lending by Fleet and 

Shawmut in 1995 compared with lending by Fleet, which had by then merged with 

Shawmut, in 1998). Lending to U&an-Americanborers fell by a larger 62%, and 

lending to low and moderate income borrowers of all races fell by 55.1%. 

Fleet and Bar&Boston must makeaserious commitmpnt o turning this decline around, 

and to continuing and expanding successful community partnerships, not walking away 

from them. Without these changes, the Fleet / Bank&&on-merger will do significant 

harm to our communities. 

cc: 

Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston MA 022 1 l-2000 

Jennifer Johnson 

Secretary of the Federal Reserve Board 

20th & Constitution Ave. NW 

Washington, DC 20551 
DEAR ACORN HOUSING 

I AM WRITING YOU THIS LETTER TO THANK YOU ALL 

VERY MUCH FOR ALL THE HARD WORK THAT YOU ALL DID FOR ME. 

IT TOOH SOME TIME BUT IT ALL WORKED OUT YOU HELPED ME ON 

THE RIGHT TRACK TO FIXING MY CREDIT AND THEN LED ME TO 

THE PERFECT BANK. 

I ALWAYS DID MY BANKING THREW PEOPLES BANK BUT NOW I SEE 

THE DIFFERENCE BOTH IN SERVICE AND PEOPLE. 

SHARON AND DANITA THAY WERE GREAT. THAY WERE REALY DOWN TO 

EARTH AND MADE ME FEEL LIKE I WAS BEING WELCOMED INTO A 

GROWING FAMILY. NOT JUST ANOTHER BUSINESS DEAL. 

SO THANK YOU ALL VERY MUCH FOR ALL YOUR HARD WORK WITHOUT 

ACORN AND FLEET I WOULD NOT BE A PROUD HOME OWNER TODAY. 

THANK YOU 
June 30,1999 

Bob Brady 

Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave 

Boston, MA 02 106 

Dear Mr. Brady: 

I am writing to express my serious concerns about the proposed merger between 

Fleet Financial Group and Bar&Boston Corporation. This merger will create a regional 

megabank which will dominate local markets, controllingmore than l/4 of every dollar 

held by New England banks and thrifts. A bank this large must do a good job of meeting 

the credit needs of all of our communities, and Fleet does not appear willing to live up to 

this standard. 

Where it operates alone, without commun@q&ners, as for example in those 

cities served by Fleet Real Estate Funding , &hates of Fleet have a terrible record of 

serving the credit needs of lower income and non white-borrowers. In city after city, Fleet 

Mortgage overwhelmingly concentrates its loans in higher income census tracts, and in 

majority white census tracts. In Bridgeport, for exam@., in 1997 Fleet Real Estate 

Funding made less than 7% of their conventional loans in low and moderate income areas, 

and rejected African-Americans over five times more often than white borrowers. Over 

70% of loans made by Fleet National Bank were in census tracts were in areas where 

fewer than 20% of residents are members of minority groups. 

Where Fleet has developed community lendingprograms with local partners, their 

record looks different. While the bank has continued to reject minority borrowers at rates 

significantly higher than white borrowers, as a result of successll partnerships it has also 

in the past made a significant number of loans in some of these communities. In 

Bridgeport, Fleets partnership with ACORN Housing Corporation has been responsible in 

recent years for pluralities and even majorities of all of the banks loans to low and 

moderate income borrowers, and to nonwhite borrowers. In 1997, for example, where all 

Fleet affiliates combined made a total of 52 loans to African American and Hispanic 

borrowers in Bridgeport, 48 of the loans were made through the AHC lending 

partnership. In short, without this partnership, Fleet would have made almost no loans to 

African American or Hispanic borrowers in our city. 

Now, as it proposes to grow still larger by mergingwith Bar&Boston, Fleet is 

walking away from this partnership. The bank has refused to continue the flexible 

underwriting and other practices which have made so many loans happen in Bridgeport. 

This refusal can only dramatically accelerate the existing downward trend of Fleets lending 
in underserved Connecticut communities. As Fleet has grown and incorporated other 

institutions, its total lending in Connecticut ha&z&&, and that decline has been steeper 

in lending to low and moderate income and to minority-borrowers. Between 1995 and 

1998 overall lending by Fleet fell& 49% in thestate that is lending by Fleet and 

Shawmut in 1995 compared with lending by Fleet, which had by then merged with 

Shawmut, in 1998). Lending to UicanAmericanborrs fell by a larger 62%, and 

lending to low and moderate income borrowers of all races fell by 55.1%. 

Fleet and Bar&Boston must makeaserious cow o turning this decline around, 

and to continuing and expanding successfkl community partnerships, not walking away 

from them. Without these change+ the Fleet / BanlcBQEtonrmerger will do sign&ant 

harm to our communities. 

cc: 

Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston MA 022 1 l-2000 

Jennifer Johnson 

Secretary of the Federal Reserve Board 

20th & Constitution Ave. NW 

Washington, DC 20551 
LaFreda Simucl 

54 P Street 

Hamden, CT 065 14 

June 29,1999 

To whom it may concern, 

I am a first-time homebuyer. I was able to purchase a two family house ou 

54 2& Street, &den, CT through the Acorn Housing Progm~. My closing 

date was schedule for April 9,1999. Acorn assisted me tremendously in my 

effort to receive a loan f?om Fleet Bank. 

Working with Acorn I was able Co present my application to Fleet Bank with 

little doubt. Acorn brings new customers like myself to Fleet Bank. I feel 

that Acorn and Fleet Bank work well together with assisting tixst-time 

homebuyers. 

Sincerely, 

L&recta Simuel 

‘+c* TOTAL FAGE. 02 *tar 
3 

4083 Main St., Bridgeport, CT 06606 Telephone (203) 372-6996 Fax (203) 372-9985 

June 3C. 1999 

Ms. Doris Latorre 

140 Fairfield Avenue 

Bridgeport, CT 06604 

SUBJECT: ACORN HOUSING PROGRAM 

Dear .Lls. Latorre: 

Since I began working with ACORN Housing Program in 1993, I have been impressed with 

their dedication in helping people obtain their dream; buying their own home. Their 

commitment to first-time homebuyers is shown through the programs they offer. ACORN 

educates the first-time homebuyer through the entire home buying process, including pulling 

and explaining credit reports to the point of helping first time buyers qualify for a mortgage. 

ACORN also ensures that the first-time homebuyer is ready for the responsibilities of owning a 

home. Their counseling programs such as managing money play a significant role in ensuring 

the success of these buyers as homeowners. 

From my personal perspective, it is always refreshing to witness an organization, such as 

ACORN, offering its services and enabling first-time buyers to purchase a home. My 

customers have been very happy with the services they received from ACORN. They realize 

that without an organization like ACORN they probably would not be homeowners today. 

For me professionally, having ACORN to turn to has improved my business. Many 

prospective buyers do not know the first thing about buying and or owning a home. Having 

ACORN as a “partner” has helped many of my customers realize their dream. Having 

ACORN educate my customers and “walk them through the process” has helped XI> 

tremendously. It is my hope that they will continue to assist first time homebuyers for many 

years to come. 

Sincerely, 

Luisa I?. Dias 
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DEAR ACORN HOUSING 

I AM WRITING YOU THIS LETTER TO THANK YOU ALL 

VERY MUCH FOR ALL THE HARD WORK THAT YOU ALL DID FOR ME. 

IT TOOE SOME TIME BUT IT ALL WORKED OUT YOU HELPED ME ON 

THE RIGHT TRACK TO FIXING MY CREDIT AND THEN LED ME TO 

THE PERFECT BANK. 

I ALWAYS DID MY BANKING THREW PEOPLES BANK BUT NOW I SEE 

THE DIFFERENCE BOTH IN SERVICE AND PEOPLE. 

SHARON AND DANITA THAY WERE GREAT. THAY WERE REALY DOWN TO 

EARTH AND MADE ME FEEL LIKE I WAS BEING WELCOMED INTO A 

GROWING FAMILY. NOT JUST ANOTHER BUSINESS DEAL. 

SO THANK YOU ALL VERY MUCH FOR ALL YOUR HARD WORK WITHOUT 

ACORN AND FLEET I WOULD NOT BE A PROUD HOME OWNER TODAY. 

THANK YOU 
June 30, 1999 

Bob Brady 

Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave 

Boston, MA 02 106 

Dear Mr. Brady: 

I am writing to express my serious concerns about the proposed merger between 

Fleet Financial Group and Bar&Boston Corporation, This merger will create a regional 

megabank which will dominate local markets, controlling more than l/4 of every dollar 

held by New England banks and thrifts. A bank this large must do a good job of meeting 

the credit needs of all of our cod es, and Fleet doesnot appear willing to live up to 

this standard. 

Where it operates alone, without comm~ers, as for example in those 

cities served by Fleet Real Estate Funding , Sates of Fleet have a terrible record of 

serving the credit needs of lower income and nonwhiuz-borrowers. In city after city, Fleet 

Mortgage overwhelmingly concentrates its loans in higher income census tracts, and in 

majority white census tracts. In Bridgeport, for example, in 1997 Fleet Real Estate 

Funding made less than 7% of their conventional loans in low and moderate income areas, 

and rejected African-Americans over five times more&en than white borrowers. Over 

70% of loans made by Fleet National Bank were in census tracts were in areas where 

fewer than 20% of residents are members of minori$gqxps. 

Where Fleet has developed community lendingprosams with local partners, their 

record looks different. While the bank has contim&-toreject minority borrowers at rates 

significantly higher than white borrowers, as a result of successful partnerships it has also 

in the past made a sign&ant number of loans in someofthese communities. In 

Bridgeport, Fleets partnership with ACORN Housing Corporation has been responsible in 

recent years for pluralities and even majorities of all of the banks loans to low and 

moderate income borrowers, and to nonwhite borrowers. In 1997, for example, where all 

Fleet afhliates combined made a totalof 52 loans to A&ican American and Hispanic 

borrowers in Bridgeport, 48 of the loans were made through the AHC lending 

partnership. In short, without this partnership, Fleet would have made almost no loans to 

African American or Hispanic borrowers in our city. 

Now, as it proposes to grow still larger by merg@g with Bar&Boston, Fleet is 

walking away from this partnership. The bank has refused to continue the flexible 

underwriting and other practices which have made so many loans happen in Bridgeport. 

This refusal can only dramatically accelerate the existing downward trend of Fleets lending 
in underserved Connecticut communities. As Fleet has grown and incorporated other 

institutions, its total lending in Connecticut has declined, and that decline has been steeper 

in lending to low and moderate income and to minority borrowers. Between 1995 and 

1998 overall lending by Fleet fellby 49% in -(that is lending by Fleet and 

Shawmut in 1995 compared with lending by Fleet, which had by then merged with 

Shawmut, in 1998). Lending to &kan-Amerirslnfell by a larger 62%, and 

lending to low and moderate income borrowers of all races fell by 55.1%. 

Fleet and Bat&Boston must make a serious commitment to turning this decline around, 

and to continuing and expanding successll community partnerships, not walking away 

from them. Without these changes, the Fleet / BankBoston merger will do significant 

harm to our communities. 

Sincerely, 

cc: 

Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston MA 022 1 l-2000 

Jennifer Johnson 

Secretary of the Federal Reserve Board 

20th & Constitution Ave. NW 

Washington, DC 20551 
lkkpbwu cm 333.11’7 

‘lbkcqb 2U3 3844832 

Weinstein, Weiner, Ignd, Napolitano & Shapiro, PC. 

June 29, 1999 

Doris Lotone 

Acorn Housing Corporation 

240 Fdrfield Avenue 

Suite 303 

Bridgeport, CT 06604 

Dear Doris; 

You recently inquired conceming my experience with both your program, and more 

spedicdly loans that have closed with Fleet Bank. 1 can again express my thoughts 

concerning the work that you and ACORJQ have been doing with regard to helping members 

of the community to obtain housing in the area, and can specifically respond concerning Fleet 

Bank. They’re pat. 

One of the benefits of this program is that one of your participating lenders is Fleet. I know 

from my end that hearing that there has been a referral to Fleet is always good news. From 

the heip that Sharon, De&t, and James give buyers in get*&g the ba!l rolling, to the people in 

the closing department, it is always a pkasure to work with Fleet. T’iis, of wurse. is a great 

benefit to those first time buyers who oflen just don’t know which end is up 

As you know, I have been involved in many closings that arise out of your program, and have 

been regularly attending the Home Buyer’s seminars that are given by ACORN, assisting ln 

explaining the process of buying a house to prospective purchasers. 

Having been at these seminars, I can attest to the quality and breadth of the presentation. 

Buyers are advised as to aspects of the transaction ranging from dealing with real estate 

brokers, mainte~ce of good credit, solving problems, the mechanics of the lending process, 

contracts and closing. From speaking with participants, I know that one of the most valuable 

parts of the process is that buyers receive good information, presented in a manner that 

fosters both learning, and allowing the buyer to ask questions. So many times I have seen 
first time home buyers be treated in a manner that does not leave the door open for them to 

ask the questions that they have That does not happen in your seminar. 

Having repwed num~ous purchuucrs in these transactions, I also know that they 

appreciate not on!y the seminars, but the access to the lenders, This comes not only-from the 

close rektionship that ACORN has with a lender such as Fleet, which smooths the 

application and approval process, but, as well, f?om the assistance to xirst tune buyers in 

organizing the necessary documents, and the guidance to look for housing in a price range for 

which financing will be a reality. 

I appreciate the opportunity to work with you, and can certainly recommend this program as 

one which truly stands out as one that benefits this community. The great A~~~erican dream of 

owning a home is not simply a phrase.. .it is a meaningfir and significant event for your 

clients. It is one that ACORN has facilitated for many people, and for which you deserve 

great credit. The same credit goes to Fleet, and the lnutm side that they give to these 

transactions. Without the patience of people like Fernando Ruiz, Damita Davis, Sharon 

Scrimenti, James LMorton-buyers would have a much harder time. 

If you need any other information, by all means, give me a call. 

very trdy ywrs 

s-- 
Seit ey: Nwa Realty; 

4083 Main St., Bridgeport. CT 06606 Te!ephone (203) 372-6996 Far (203) 372-9985 

June 29. 1999 

Ms. Doris Latorre 

240 Fairfield Ave. 

Bridgeport, CT 06604 

Dear M. Latorre: 

The ACORN Housing Prqram is excellent to prepare the first time buyers. 

Many of our clients have used this program and they have been pleased with it. 

We know for a fact that il was not for this program, many of our clients would not 

have been able to buy their first home. 

In our opinion, it is good for the city of Bridgeport to have as many people as 

possible to own and occupy the residential properties, because it gives the 

owners pride, responsibi ilty and an incentive to improve their homes and their 

neighborhoods. 

J 

Domingos M. Dias 

Partner 
4083 Plain St., Bfidgepofl, CT 06606 Telephone (233) 372-6996 Fax (2’33) 372-9985 

_iunc 30, 1939 

?vfs. Doris Latcrre 

,212 Fairfield Avenue 

I3ridgepDx-l: CT 06604 

SUBJECT: ACORN HOL’S NG PROGRAM 

Dear Ms. Latorre: 

Since I kegan working smith L\CORN Housmg Program in 1993, I have hcen imp-cued witi 

their dedication in h,:lpicg people obtain their dream; buying their oxn home. Their 

commitment to firs:-lime hcmebuyers is shoTin through the programs they offer. ACOKK 

educates the first-time homebuyer through the entire home buying process, ixluding pulling 

and ex$ain:ng credit reports to the point of hclpq, . ‘0 firs: time buyers qualily fx 3 inortgqc. 

ACORN also ensurcs that A? first-time homebuver is ready ior the rrsponsihi!ities oi ,_-jwning a 

home. Their counseling pq;rams such ti managing money play a slgniflcant role in ensuring 

the success 0i these buyers as homeowners 

From rn~’ pcrsrinal persjxct ve, it is always re:xshing t3 w:lness 211 orga&ar:ori, such a> 

ACORN. offering its servi,:es and enabling first-time bcyers to purchase a home. !v:y 

CU~KX-IWYS hzve been very ia~py with the services the>- rec&yed from .~COXK. 7‘,1ey realize 

that wi:hsut an orgar.izat:on .tke ACOR?J the> prohaFly n;nuld nor be homeowners *&da;-. i. 

For me professior.~ly, hav: ng .4CORN to turn tc has impr!>vct! my bu&ess. lvlq~ 

prospectiT:e buys do not kr.ov the first thing abo,x buying and or owning a h:)me. Havir:g 

ACORN as a “Fanner” has helped tnx~y of my customers realise :helr drexx. FIavin~ 

ACORN educate rr.y cusxmers and “walk them through the pmccss” has helFcd my 

tremen;iously. 1r is my :clcp: that they will conrinue LO assist first tinlr homebuyer; i;x zan:: 

years tcs ronx. 

iuisa P. Dias 
Jul-06-99 02:38P Cmte. on Health Care 7222706 

July 05, 1999 

l3ub lhady 

Vice President 

Boston F’cdcral Reserve B‘ank 

600 Atlantic Avcnuc 

Boston, Mh 02i 06 

I)ear Mr. Brady. 

I am writing to express my serious conccms about tlic proposed incrger between Fleet 

Financial tiruup ;rnd I3ankRoston Corporation. As your notice about the upcoming 

hearing remarks, thij proposal involves the two Iargest banks in New Enghd, and will 

create a regional megabank which wiI1 dominate local markets. I am conccmed about the 

impact of this mcrgcr nn local communities, and especially on low and moderate income 

and minority f&amiiies. 

Whcrc it operates alone, without conmunily partners, as Tar example in those cities 

served by Fleet Real Estate Funding, afliliates of Fleet have a terrible record of serving 

the credit needs o!‘ lower income and non white borrowers. In city aner city, Flee: 

Mortgage overwhelmingly concentrates its loans in higher income census trwts, and in 

majority w!litc census tracts. This pattern holds true for Fleet Mortgage in New Et&and 

as well. 

In Boston, liar example, in 1997 Fleet Real Estate Funding made oniy 1~5% of its 

convrn:ionaI loans in low and moderate inwme arcas, and rcjccted African American and 

Latin0 bormwers twice as often as white borrowers. In Springfield, Fleet Real Estate 

Funding tnadc no loans in low-income areas and only one loan in a modcrate-income 

conmuni~y in 1997. They also msdc no loans in census tracts where snore than 50% of 

the residents are minorities. Almost 80% of loans by l$~t entities in Springfield were in 

census tracts that arc 1crs than 20% minority. In Rrockton, I$xs~ Nationai B‘a.nk again 

macic no loans in low income census tracts or in tracts at least 500/b minority. 

Whcrc Fleet has dcvcloped community Icnding programs with local partners, their record 

looks different. Wilt the bank has continued to reject minority borrowers at rates 
Jul-06-99 Oz:38p Cmte. on Health Care 

7222706 

signifkontly higher than white borrowers, as a result of successful ptncrships it hils also 

in the p3st ntadc a significant number of loans in some oflhese communities, 

The trend in recent years, however, as Plcct has grown and incorporated other 

institutions. has been a decline in lending overall in MIassachusctts. and a steeper decline: 

in lending to low and moderate income and to minority borrowers. Betwcon 1995 Land 

1998 ovctall lending by i;lcct fell by 46% (that is lending hg Fleet and Shmmut in 1995 

compares with icnding by Fleet, which had by then acquired Shawmut, in 199Sj. 

Lending to African American borrowers fell by 52.4%. ,2nd lending to low and moderate 

incornc borrowcts of all races fell by 50.7%. 

It is in this context that 1 am so troubled by the fact that as it proposes to grow still larger, 

Fleet appears to be withdrawing from the agreements, and the practices, which hnve 

hclpcd create a more adequate Frfot-nxmcc from the bank than from the Mortgage 

company. ln the Bos~n MSA, Fleet National Dank reported 377 conventional lodns to 

African American and Latin0 borrowers in 1997; I understand that 134 loans, more than 

90% of them to African Amcricau and Latin0 borrowers, came through the ACOW 

Housing Corporiition Loan Counseling program alone; that is, 32% of‘thc banks loans to 

African American and T,atino borrowers came through this program. Kow, however, 1 

understand that Fleet is refusing to continue the flexible and underwriting and other 

practices which made the program, and lhese loans, possible. Abandoning this sin@ 

program alone will result in a pnxipitous decline in the hanks low and rnodcrate income 

and minority lending; the shift in d!:cction it suuests cu only ampli~ the problem many 

fold. 

Llnlcss there is a significant strengthening oi‘ their comrnitmcnt to do what is neccssav to 

maintain and increase the flow of credit to undcrsetved arcas, I believe that the 

BanklJoston / i;lcct merger will do significant harm to our commuuitics. 

in ‘. 7)’ r/l 

\ 

A- &L_- 

cpresentative l,iz Maliu 

cc: 

Terrancc Murray 

CEO Fleet hinancial 

OX Fed& Street 

Roston 9 MA 0221 I-2000 
Fesmmfr 

DANIEL M. FLANAQAN 

VXE PC1ESIOENT 

WARFIEK BUTLER 

sECrunmY.T~n 

T’-tOHAS P. DUNNE 

#ComwG SEC~AUV 

EDWARD i3fws% 

SFPVICE E’dPLUYEES IN ItH’4A-r10NAL UNIOIY. AF,-CIC, CLC 

LOCAL 3 

P.0. BOX 423 

402 RUn-1ERFORD AVENUE 

CHARLESYOWN. MASSACHUSEnS 02129 

61?-242-1410 

Far 617-242-0166 

Bob Brady 

Vice President 

600 Atlantic Ave 

Boston. MA 02106 

Dear Mr. Brady 

We are writing to expms our concern over the community impact of the merge between 

the Fleet Sank and Bank Boston. The two banks have worked with the Massachusetts 

Association of Community Organization for Reform Now in helping low and moderateincome borrowers purchase homes 

Our understanding is that the program to help families has been successfully 

implemented through ACORN and that ACORN has also provided credit and budget 

classes to make this a success. 

It is unacceptable for the Fleet and Bar&E&ton banks to end its community partnership 

with ACORN. These banks make their profits from the workmg people who live in 

Massachusetts and should not. be aliowed to forget its tm to the community. 

As the prices of housing soars, and the Greater Boston Area becomes a place where only 

the rich can af$ord to live, who will stand with the people that have worked so hard to 

make Boston what it is today? 

We urge the Fleet Bank to not turn 1t.s back on our community and ask that it continue to 

work with ACORN in supporting the working people of Boston 

Ed Brassil 1 

Business Agent 
Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston, MA 022 1 l-2000 

Dear Terrence Murray, 

As an account holder at Fleet Bank I am appalled with your refusal to renew 

the contract with ACORN Housing Corporation. The union of the two most 

powerful banks in Boston is creating one of the most profitable monopolies 

in the New England region. It is appalling that you plan to terminate a 

housing program that has brought Fleet Bank 23.6% of its total loans to low 

and moderate income people. 

ACORN, Association of Community Organizations for Reform Now!, has 

helped hundreds of low-income people purchase homes annually. ACORN’s 

First-Time Homebuyers Program has successfully stimulated Bostonfs 

economy by reinvesting in many forgotten neighborhoods such as 

Dorchester and Roxbury. 

I am so astonished by the discriminatory practices, that I am planning to 

close my bank account by August 1,1999 or until you agree to re-open 

negotiations with ACORN and continue the housing program with ACORN. 

This is not a decision I take lightly and as such will inform my friends and 

co-workers of your current discriminatory practices. 

Sincerely, 
Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston, MA 022 1 l-2000 

Dear Terrence Murray, 

As an account holder at Fleet Bank I am appalled with your refusal to renew 

the contract with ACORN Housing Corporation. The union of the two most 

powerful banks in Boston is creating one of the most profitable monopolies 

in the New England region. It is appalling that you plan to terminate a 

housing program that has brought Fleet Bank 23.6% of its total loans to low 

and moderate income people. 

ACORN, Association of Community Organizations for Reform Now!, h 

helped hundreds of low-income people purchase homes annually. ACORN’s 

First-Time Homebuyers Program has successfully stimulated BostonIs 

economy by reinvesting in many forgotten neighborhoods such as 

Dorchester and Roxbury. 

I am so astonished by the discriminatory practices, that I am planning to 

close my bank account by August 1,1999 or until you agree to re-open 

negotiations with ACORN and continue the housing program with ACORN. 

This is not a decision I take lightly and as such will inform my friends and 

co-workers of your current discriminatory practices. 
Charles Gifford, CEO 

Bat&Boston 

100 Federal St. 

Boston, MA 02110 _ LI 

..I ’ 

..I 

Dear Mr. Gifford, 

The union of Fleet Bank and BankBoston, the two most powerful banks in 

Boston, is creating one of the most profitable monopolies in New England. As 

an account holder at Bar&Boston I am writing to you because I am appalled 

with Fleet Bank’s refusal to renew their contract with ACORN Housing 

Corporation (AHC). It is reprehensible that Fleet Bank plans to terminate 

AHC’s housing program. 

Fleet Bank has a long-time history of discrimination, evidenced by the 

investigation into Fleet Bank for charging minorities higher loan origination 

fees and interest rates by the Department of Justice in 1995. Fleet Bank has 

continued this dis crimination by cutting a successful program that helps lowand moderate income people to buy their own homes. ACORN Housing 

Corporation, has helped hundreds of low-income people purchase their own 

homes each year. AHC’s First-Time Homebuyers Program has also 

successfully stimulated Boston’s economy by reinvesting in many forgotten 

neighborhoods such as Dorchester, Mattapan and Roxbury. In 1997 ACORN 

Housing Corporation’s loans made up 14.5% of Fleet’s loans in the Boston 

area, and 23.6% of their loans to low and moderate income families. Over the 

past two years AHC has made Fleet 57 million dollars in loans. Yet, Fleet has 

terminated this program which enables low and moderate-income people to 

buy their own homes. I urge you to stop this discrimination. 

I am so astonished by Fleet Banks discriminatory practices, that I will be 

closing my BankBoston account on August 1, 1999 unless Fleet Bank agrees to 

continue the housing program with ACORN Housing. This is not a decision I 

take lightly and as such will inform my friends and co-workers of Fleet Banks 

current discriminatory practices. Thank you for your cooperation. 

Sincerely, 

..- 
Charles Gifford, CEO 

Bar&Boston 

100 Federal St. 

Boston, MA 02110 _ cd. 

. ..a. ..I 

Dear Mr. Gifford, 

The union of Fleet Bank and Bar&Boston, the two most powerful banks in 

Boston., is creating one of the most profitable monopolies in New England. As 

an account holder at BankBoston I am writing to you because I am appalled 

with Fleet Bank’s refusal to renew their contract with ACORN Housing 

Corporation (AHC). It is reprehensible that Fleet Bank plans to terminate 

AHC’s housing program. 

Fleet Bank has a long-time history of discrimination, evidenced by the 

investigation into Fleet Bank for charging minorities higher loan origination 

fees and interest rates by the Department of Justice in 1995. Fleet Bank has 

continued this discrimination by cutting a successful program that helps lowand moderate income people to buy their own homes. ACORN Housing 

Corporation, has helped hundreds of low-income people purchase their own 

homes each year. AHC’s First-Time Homebuyers Program has also 

successfully stimulated Boston’s economy by reinvesting in many forgotten 

neighborhoods such as Dorchester, Mattapan and Roxbury. In 1997 ACORN 

Housing Corporation’s loans made up 14.5% of Fleet’s loans in the Boston 

area, and 23.6% of their loans to low and moderate income families. Over the 

past two years AHC has made Fleet 57 million dollars in loans. Yet, Fleet has 

terminated this program which enables low and moderate-income people to 

buy their own homes. I urge you to stop this discrimination. 

I am so astonished by Fleet Banks discriminatory practices, that I will be 

closing my Bar&Boston account on August 1, 1999 unless Fleet Bank agrees to 

continue the housing program with ACORN Housing. This is not a decision I 

take lightly and as such will inform my fiends and co-workers of Fleet Banks 

current discriminatory practices. Thank you for your cooperation. 

Sincerely,p 
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June 30,1999 

2180 Bolton Street #lB 

Bronx, New York 10462 

Mr. Bob Brady 

Vice President 

BOSTON FEDERAL RESERVE BANK 

600 Atlantic Avenue 

Boston. Massachusetts 02106 

Dear Mr. Brady: ’ 

I am a member of ACORN Housing Corporation (“ACORN”}. I have concerns regarding 

the proposed merger between Fleet Bank and Bank Boston. 

Fleet Bank currently requires unreasonable minimum balances which affect families in 

the low to medium income brackets. Also, Fleet has canceled the specia1 home buyer program 

available to ACORN members, which provided 1% below market interest rates, and proved to 

be very beneficial. This program needs to be reinstated as the merger goes into effect. 

Large banks such as Fleet need to provide more accommodating services to people 

striving to make an honest living. They need to take more responsibility of the titure of our 

families and neighborhoods tie live in. I am asking that you please ensure that the future policies 

of your bank provide more attention to our community’s needs. 

Thank you for your kind attention to this matter. 

Paul G. Casciaro 

20 ‘d 6S:L’S 66‘ OS W 
07-06-1999 14:21 3996105 SS BED STU’f 80 157 P.02 

BOB BRADY VICE PRESIDENT 

BOSTON FEDERAL RESERVE BANK 

600 ATLANTIC AVE. 

BOSTON, MA 02106 

DEAR MR. BRAD.Y: 

I AM WRITING TO YOU BECAUSE I AM WORRIED ABOUT FLEET’S RECENT 

DECISION TO END ITS SUCCESSFUL HOMEBUYERS’ PROGRAM WITH ACORN. 

WITHOUT THE AGREEMENT TO PROVIDE FLEXIBLE UNDERWRITING TO PEOPLE 

OF LOW AND MODERATE INCOMES, FLEET WILL CONTINUE TO REDUCE THE 

SERVICES THAT IT OFFERS TO ALREADY-UNDERSERVED COMMUNITIES. AS 

FLEET PREPARES TO MERGE NOW WITH BANKBOSTON, THE OPTIONS AVAILABLE 

TO MINORITY HOMEBUYERS IN NEW YORK WILL BE TRAGICALLY FEW. 

I HOPE THIS PARTNERSHIP BETWEEN FLEET AND ACORN CONTINUED BECAUSE I 

AM IN THE PROCESS OF BUYING A HOME THROUGH THIS PROGRAM. WHILE 

LARGE BANKS ARE MAKING SO MUCH MONEY WE NEED MORE OF THESE 

PROGRAM NOT LESS, THE HOMEBUYERS PROGRAM WILL BE THE ONLY WAY I 

WILL BE ABLE TO BUY A HOME ALONG WlTH A LOT OF OTHERS LOW AND 

MODERATE MCOME FAMILIES. 

SINCERELY, s 

, 

DOROTHY CARROLL -JONES ‘\ 
Bob 3rd~ Vice Prcsideznt 

Bostoa F&A Rcscrvc Bank 

600 Atbntic Ave. 

Bortou, MA 02106 

Dar Mr. Bntdy: 

I am writing to you because I have just learned of Fleet Bar&s &cntion :o merge with 

BankBosbn, which is VT uoubling U) IE. The se&e that Flezt cu.neAy ptovides in 

&no&y communities is in&qua& when cousidercd ZWM to the need that exists -&XT. 

Their ~SII& accounts tquiro high minimum balances zo avoid service f&s and those that 

bca suit customers with low or moderatc incomes zsc not promoted at brso& in 

appropriate neighboxinods. Now they h~vc canceled Thor special homebuyer program 

offered in pammhip with ACORN, which off&d loans 8t one percent below tnarke 

interest rates. 

klinmiq communities arc underserved by large banks like Fleet, Their rduc~ancc to do 

equal zunoun~ of business in our neighborhoods has cncouaged high-iWest leading 

and check cashing. h’ow all ba&s are large Iike FM and so financial jutability in New 

York urill worsen. That is why it is so hporm~ chat Fleet Continue the hcmebuyer 

progm that it hrts run wi& ACORN, especially as it rmges with BankBcston. 
Bob Brady Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave. 

Boston, ALLA 02106 

Dear Mr. Brady: 

I am writing io you bccausc I am worried about Fleet’s rcctnt decision to end its 

success homebuyers’ program tith ACORN. Without the agreement to provide 

flexible underwriting to people of low and moderate incomes, Fleet will continue to 

reduce the xryices that it offers to already-undeserved communities. As Fleet prepares 

to merge now wirh BankBoston. the options available to rninoriry homebuyers in New 

York till be tragically few. 

I know that this partmzship between FIeet aad ACORN worked well becaus 1 was able 

to buy a home through the program. Espccialty at a time when Iarge banks M making so 

much money, we need more of these programs not less. Unfortunatiy, the homebuyers’ 

program was the only way I found to buy a home. Now other people in New York like 

me won’t even have the same chance. 

SiAccxeIy, 

ZO'd SOO'ON t7t7:TT 66‘T 1°C 8DSS89LZlZ’ON 131 ED fl 'IS INItld-Otfd 
. .._.. .--. __- 



: 

I_ ._____..~ ._ ___~.._~ -.,-- - __ __ _ .____.-.-.---.-- 

‘. .I 

;:_ 

-. 

__. - __~ _- _ _-. _ __ . 

_.,_ 

Terrance Murray 

CEO Fleet Financial 

One Federal Street 

Bostoli, MA 0221 l-2000 

Dear Terrence Murray, 

As an account holder at Fleet Bank I am appalled with your refusal to renew 

the contract with ACORN Housing Corporation. The union of the two most 

powerful banks in Boston is creating one of the most profitable monopolies 

in the New England region. It is appalling that you plan to terminate a 

housing program that has brought Fleet Bank 23.6% of its total loans to low 

and moderate income people. 

ACORN, Association of Community Organizations for Reform Now!, has 

helped hundreds of low-income people purchase homes annually. ACORN’s 

First-Time Homebuyers Program has successfully stimulated BostonIs 

economy by reinvesting in many forgotten neighborhoods such as 

Dorchester and Roxbury. 

I am so astonished by the discriminatory practices, that I am planning to 

close my bank account by August 1,1999 or until you agree to re-open 

negotiations with ACORN and continue the housing program with ACORN. 

This is not a decision I take lightly and as such will inform my friends and 

co-workers of your current discriminatory practices. 
Charles Gifford, CEO 

Bat&Boston 

100 Federal St. 

Boston, MA 02110 . CL 

..I 

..A 

Dear Mr. Gifford, 

The union of Fleet Bank and BankBoston, the two most powerful banks in 

Boston, is creating one of the most profitable monopolies in New England. As 

an account holder at Bar&Boston I am writing to you because I am appalled 

with Fleet Bank’s refusal to renew their contract with ACORN Housing 

Corporation (AHC). It is reprehensible that Fleet Bank plans to terminate 

AHC’s housing program. 

Fleet Bank has a long-time history of discrimination, evidenced by the 

investigation into Fleet Bank for charging minorities higher loan origination 

fees and interest rates by the Department of Justice in 1995. Fleet Bank has 

continued this discrimination by cutting a successful program that helps lowand moderate income people to buy their own homes. ACORN Housing 

Corporation, has helped hundreds of low-income people purchase their own 

homes each year. AHC’s First-Time Homebuyers Program has also 

successfully stimulated Boston’s economy by reinvesting in many forgotten 

neighborhoods such as Dorchester, Mattapan and Roxbury. In 1997 ACORN 

Housing Corporation’s loans made up 14.5% of Fleet’s loans in the Boston 

area, and 23.6% of their loans to low and moderate income families. Over the 

past two years AHC has made Fleet 57 million dollars in loans. Yet, Fleet has 

terminated this program which enables low and moderate-income people to 

buy their own homes. I urge you to stop this discrimination. 

I am so astonished by Fleet Banks discriminatory practices, that I will be 

closing my BankBoston account on August 1, 1999 unless Fleet Bank agrees to 

continue the housing program with ACORN Housing. This is not a decision P 

take lightly and as such will inform my fiends and co-workers of Fleet Banks 

current disciiminatory practices. Thank you for your cooperation. 

Sincerely, 
Charles Gifford, CEO 

Bat&Boston 

100 Federal St. 

Boston,MA02110. CI ’ 

..I 

Dear Mr. Gifford, 

The union of Fleet Bank and Bar&Boston, the two most powerful banks in 

Boston, is creating one of the most profitable monopolies in New England. As 

an account holder at BankBoston I am writing to you because I am appalled 

with Fleet Bank’s refusal to renew their contract with ACORN Housing 

Corporation (AHC). It is reprehensible that Fleet Bank plans to terminate 

AHC’s housing program. 

Fleet Bank has a long-time history of discrimination, evidenced by the 

investigation into Fleet Bank for charging minorities higher loan origination 

fees and interest rates by the Department of Justice in 1995. Fleet Bank has 

continued this discrimination by cutting a successful program that helps lowand moderate income people to buy their own homes. ACORN Housing 

Corporation, has helped hundreds of low-income people purchase their own 

homes each year. AHC’s First-Time Homebuyers Program has also 

successfully stimulated Boston’s economy by reinvesting in many forgotten 

neighborhoods such as Dorchester, Mattapan and Roxbury. In 1997 ACORN 

Housing Corporation’s loans made up 14.5% of Fleet’s loans in the Boston 

area., and 23.6% of their loans to low and moderate income families. Over the 

past two years AHC has made Fleet 57 million dollars in loans. Yet, Fleet has 

texminated this program which enables low and moderate-income people to 

buy their own homes. I urge you to stop this discrimination. 

I am so astonished by Fleet Banks discriminatory practices, that I will be 

closing my Bar&Boston account on August 1, 1999 unless Fleet Bank agrees to 

continue the housing program with ACORN Housing. This is not a decision I 

take lightly and as such will infoxm my friends and co-workers of Fleet Banks 

current discriminatory practices. Thank you for your cooperation. 
June 30,1999 

2180 Bolton Street #lB 

Bronx, New York 10462 

Mr. Bob Brady 

Vice President 

BOSTON FEDERAL RESERVE BANK 

600 Atlantic Avenue 

Boston, Massachusetts 02 106 

Dear Mr. Brady: . 

I am a member of ACORN Housing Corporation (“ACORN”). I have concerns regarding 

the proposed merger between Fleet Bank and Bank Boston. 

Fleet Bank currently requires unreasonable minimum balances which affect families in 

the low to medium income brackets. Also, Fleet has canceled the special home buyer program 

available to ACORN members, which provided 1% below market interest rates, and proved to 

be very beneficial. This program needs to be reinstated as the merger goes into effect. 

Large banks such as Fleet need to provide more accommodating services to people 

striving to make an honest living. They need to take more responsibility of the future of our 

families and neighborhoods we live in. I am asking that you please ensure that the future policies 

of your bank provide more attention to our community’s needs. 

Thank you for your kind attention to this matter. 

Paul G. Casciaro 

20 ‘d 6S:LI: 66, 02 unf 
07-06-1999 14:21 3986 105 SS BED STUV 80 157 P.02 

BOB BRADY VICE PRESIDENT 

BOSTON FEDERAL RESERVE BANK 

600 ATLANTIC AVE. 

BOSTON, MA 02 106 

DEAR MR. BRAD.Y: 

I AM WRITING TO YOU BECAUSE I AM WORRIED ABOUT FLEET’S RECENT 

DECISION TO END ITS SUCCESSFUL HOMEBUYERS’ PROGRAM WITH ACORN. 

WITHOUT THE AGREEMENT TO PROVIDE FLEXIBLE UNDERWRITING TO PEOPLE 

OF LOW AND MODERATE INCOMES, FLEET WILL CONTINUE TO REDUCE THE 

SERVICES THAT IT OFFERS TO ALREADY-UNDERSERVED COMMUNITIES. AS 

FLEET PREPARES TO MERGE NOW WITH BANKBOSTON, THE OPTIONS AVAILABLE 

TO MINORITY HOMEBUYERS IN NEW YORK WILL BE TRAGICALLY FEW. 

I HOPE THIS PARTNERSHIP BETWEEN FLEET AND ACORN CONTINUED BECAUSE I 

AM IN THE PROCESS OF BUYING A HOME THROUGH THIS PROGRAM. WHILE 

LARGE BANKS ARE MAKING SO MUCH MONEY WE NEED MORE OF THESE 

PROGRAM NOT LESS, THE HOMEBUYERS PROGRAM WILL BE THE ONLY WAY I 

WILL BE ABLE TO BUY A HOME ALONG WITH A LOT OF OTHERS LOW AND 

MODERATE INCOME FAMILIES. 

SINCERELY, 

1 

DOROTHY CARROLL -JONES ‘3 
_wi. 30.1339 9: 54AM 

Bob bdy Vice Presideat 

Boston Federal Reserve Ba& 

600 Athutic Ave. 

s30Sto& MA 02 106 

Dear Mr. Brady: 

I am writing io you because I have just learned of Fleet Bazk’s btention :o merge with 

&&&xton, which is very troubler% to me. The service that Fleet cuzently ptovides in 

rainoriry communitie; is inadequate when considered ZICXI to the seed that exists -&ere. 

Their IN& accounfs require high minimum balances to avoid se&ce fees and these that 

best tit customers with low or moderzcte incomes ue not promoted at brsnc;he?; in 

appropriate neighborhoods. Now they have canceled their special homebuyer progrsm 

of’!&ed in par@zr~hip wirh ACORN, which offered loans at one percent below mark& 

interest rates. 

Minority wtnmunities are underserved by large banks like Fleet, Their rrluCt8nce LO do 

eqti amounts of business in our neighborhoods has encouraged high-inWrest lending 

md check cashing. Now ail ba&s are large like Fleet and so financial instability in Kew 

York WiU worsen, ‘That is why i! is SO irnpomnt that Fleet bontinue the hcmebuyzr 

program thar it has run with ACORN, especially as it merges with BankE3eston. 

20 ‘d ss:o 66, OS w 
3uN.3a.1999 10: 19FK1 

Bob Brady Vice President 

Boston Federal Reserve Bank 

600 Atlantic Ave. 

Boston, AU 02 106 

Dear Mr. Brady: 

I am writing io you because I am worried about Fleet’s recent decision to end its 

cruccessfirl homebuyen’ program with ACORN. Without the agreement to provide 

flexible undarwriting to people of low and moderate incomes, Fleet will continue to 

reduce the services that it offers to already-undersmed communities. As Fleet prepares 

to merge now wirh Bar&Boston. the options available to minority homebuyers in New 

York will be tragically few. 

I know that this parmership between Fleet and ACORN worked well because I was able 

to buy a home through the prom. Especidty at a time when large banks are making so 

much money, we need more of these programs not Iess. Unfortunately, the homebuyers’ 

piogmm was the only way I found to buy a home. Now other people in New York like 

me won’t even have the same chance. 

siIlccre1y, 
Texrance Murray 

CEO Fleet Financial 

One Federal Street 

Boston&W 022 1 l-2000 

Dear Terrence Murray, 

As an account holder at Fleet Bank I am appalled with your refusal to renew 

the contract with ACORN Housing Corporation. The union of the two most 

powerful banks in Boston is creating one of the most profitable monopolies 

in the New England region. It is appalling that you plan to terminate a 

housing program that has brought Fleet Bank 23.6% of its total loans to low 

and moderate income people. 

ACORN, Association of Community Organizations for Reform Now!, has 

helped hundreds of low-income people purchase homes annually. ACORN’s 

First-Time Homebuyers Rrogram has successfully stimulated BostonIs 

economy by reinvesting in many forgotten neighborhoods such as 

Dorchester and Roxbury. 

I am so astonished by the discriminatory practices, that I am planning to 

close my bank account by August 1,1999 or until you agree to re-open 

negotiations with ACORN and continue the housing program with ACORN. 

This is not a decision I take lightly and as such will inform my friends and 

co-workers of your current discriminatory practices. 

Sincerely, 
--A.__ 
. . ‘; 

;’ ! 

. . . . . . . . . . . . . :4+i- Y.-- 

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