Inner City Press 

Community on the Move 

& 

Inner City Public Interest Law Center 

July 10, 1998 

MS. Polc,re5 S. Smith 

Presidir.y IOfficer 

Federal Reserve Bank of San Francisco 

101 Market Street 

San Francisco, CA 94105 

ICE: ICP'a Attached Testimony To Be Presented by the 

California Reinvestment Committee 

Dear Presiding Officers Smith, members of the Fan-1~: 

This letrrcr confirms that the California Reinvestment 

CommiLtee jis authorized and invited to present the attached 

testimony ;~t the Public Meeting on July 10, 199'6. For your 

information, our organizaLion presented CRC's testimony at 

the Pubiic Meeting on the Travelers-Citicorp proposal, held 

at the Federal Reserve sank of New York on June 25, 1998. 

We thank C%.C for returning the favor, and note t!ult we will 

be submiLLing further written comments on or beh;llf July 16, 

1998. IF you have any questions, please telephone me at 

(718) '71;<-:1540. 

Executive? director 
Inner City Press 

Community on the Move 

& 

Inner City Public Interest Law Center 

TESTIMONY OF MATTHEW LEE, INNER CI’fY PRESS/COMMUNITY 

ON THE MOVE (AND ALSO ON BEHALF OF THE NEW MEXICO 

ALI.IANCE AND BLACK CITIZENS FOR JUSTICE:, LAW AND 

ORDER), fN OPPOSITION TO THE APPLICATIONS OF 

NATLONS’BANK TO ACQULRE BANKAMERLCA & ITS SU13SIDIARlES 

FEDERAL RESERVE BANK OF SAN FRANCISCO 

JULY lo> 1998 

Good morning. Ms. Smith and other members of the panel. This is the 

testimony of Matthew Lee, Executive Director of Inner City 

PressiComrnu~mu~,~, the Move and of the Inner City Public Interest Law 

Center (together,“ICP’), which the California Reinvestment Committee has 

been kind enough to present. TCP on May 6 filed a %-page protest to this 

application, along with Black Citizen for Justice, Law and Order of Dallas, 

Texas, and the New Mexico Alliance, two of whose members, Gilbert 

Sanchez and Robert Wells, you heard from yesterday. We are opposed to 

this proposed merger, primarily due to NationsBank’s continued predatory 

and discriminatory practices through its finance companies NationsCredit and 

EquiCredit. and due to the anticompetitive and branch closing effects the 

proposed merger would have in New Mexico and in Dallas, Texas. 

NationsHank’s ill-defmcd Community Reinvestment pledge does nothing to 

address these issues -- in fact, as explained in a moment, NationsBank’s 
~~1-08-98 13:06 

failure to live up to its commitment with regard to NationsCredit calkinto 

question whether the Board could rely on NationsBank’s press release 

pledge. 

In 1996, when NationsSank announced its proposal to acquire 

Boatmens Bancshares. including its subsidiary Sunwest, the largest bank in 

New Mexico, ICP and the New Mexico Alliance filed comments with the 

Federal Reserve Board. We critiqued the lending of NationsBank and its 

higher than normal interest rate finance company, Nat:t;Cz$i and 

documented that NationsBank was referring applicantshdispr&ortionately 

African Americans and Hispanics) from its banks to NationsCredit, which 

ofl‘ers higher than normal interest rate credit, but that NationsCrcdit had no 

policy or program to refer “up” to NationsBank applicants who were entitled 

to normal interest rate credit. We showed that NationsBank has been closing 

branches in low income communities of color, and has been opening 

NationsCredit offices in these communities. The Board refused to conduct 

an examination of NationsCredit, but did ask NationsBank how many 

lawsuits were pending against NationsCredit. NationsBank submitted a 

skeletal list of IlY lawsuits then pending against NationsCredit, We showed 

that the list was incomplete -- but even if it were not, it would seem that that 

volume of litigation would trigger some examination by the Federal Reserve. 

During that protest, NationsBank’s CRA Officer was quoted in U.S. News & 

World Report to the effect that NationsCredit would institute a practice of 

referring applicants who were entitled to normal interest rate loans up to 

NationsHank’s. banks, from NationsCredit, and that this would be done by 

February 1!)97. 

2 
.Jul-08-98 13:06 

NationsBank refused thereafter to provide information about 

NationsCredil: or this promised change. In January of this year, we were 

informed by the Office of the Comptroller of the Currency that NationsCredit 

has still not instituted any “referral up” program. NationsBank has since 

confirmed this, proffering as its excuse that there has been “a lot of turn over” 

at NationsCredit. Most recently, the Federal Reserve itself asked 

NationsBank to described all current and planned referral programs between 

its banks, mortgage company and finance companies. NationsBank’s 

response hai been that everything is in flux. 

Simply put, NationsBank’s $350 billion Community Reinvestment 

commitment is not credible, since NationsBank has not lived up to its 

previous commitments. 11 is also important to note that NationsRank has 

refused to make any more specific geographic commitments, at even the state, 

much less cotmty, level. Rut the key point, to us, is that NationsRank’s 

promises of future improvements -- do not in fact take place. 

After NationsBank bought Boatmen’s and Sunwest, NationsBank 

quickly closed eight branches in New Mexico, even though there was not 

overlap between NationsBank and Sunwest: The Federal Reserve has said, in 

its NationsBank-Boatmens conditional approval order, that it would 

“monitor” NationsBank’s branch closings, but this has had little to no effect. 

More recently. after gaining approval to acquire Bamett Banks of Florida, 

NationsRartk has moved to close over 200 branches in Florida. 

In thus proposal, NationsBank and Bank of America overlap in New 

Mexico and Dallas. NationsBank has again refused to disclose how many or 

7 
.JU,-OS-96 13:06 

1 

P.07 

which branches it would close; it has also put forth a laughably low 

divestiture proposal, that would allow it to dominate and raise prices in Dallas 

and a number of New Mexico markets. NationsRank has apparently paid 

numerous groups to come and testify in its support at this public meeting, but 

the fact, as they say, are the facts: 

--NationsBank said it would institute a referral up program From 

NationsCredit to its banks by February 1997, and NationsBank DIII NOT 

DO SO. 

--This proposed merger would be anticompetitive in Dallas and numerous 

New Mexico markets, and NationsBank’s divestiture proposal is sorely 

insufficient. 

--NationsHank has refused to disclose what the actual effects of the merger 

would be, including in branch closings. 

There are other adverse issues, including the foreseeable loss of 

various Bank of America programs, ably raised by the California 

Reinvestment Committee and others. For all the reasons stated, this proposed 

merger should be denied. Thank you for your attention; we will be submitting 

further written comments by July 16, 1998. Thank you. 
,. 

.wi-08-98 13:07 p.oa 

Inner City Press 

Community on the Move 

& 

Inner City Public Interest Law Center 

ADDEh’D IJM TO 

TESTIMONY OF MATTHEW LEE, NNER CITY PRESS/COMMUNITY 

ON ‘IlIE hfOVE (AND ALSO ON BEHALF OF THE NEW MEXICO 

ALLIANCE AND BLACK CITIZENS FOR JUSTICE, LAW AND 

ORDER), IN OPPOSITION TO T-HE APPLTCATlONS OF 

NATIONSBANK TO ACQUIRE BANKAMERICA & ITS SUBSIDlARlES 

FEDERAL RESERVE BANK OF SAN FRANCISCO 

JULY 10. 1998 

On klehalf of Inner City Press/Community on ti.e Move, 

the New Nexico Alliance ("WA"), and Black Citizen:; for 

Justice, I,a~d and Order ("BCJLO") (collectively hereinbelow, 

"ICP"), this addendum analyzes the 1996 l.ending of 

NationsRank Corp.'s banks, NationsBanc Mortgage Co. i"NK") 

and EquiCr-wi,t, a higher~ than normal interest rate ler,der 

owned by NationsBank. A; demons:rated below, Na:.innsBank's 

normal irte.cest rate lenders disproportionately deny and 

exclude P.fr.ican Americans and Hispanics (protected classes 

under [he Flair 13ousing Act and the Equal Credit Opportunity 

Act), while EquiCredit targets people of color for !iiyher 

than normal interest rate credit. This makes OUL a prima 

facie case :>f pricing discrimination within NationsHank 

Corp., 2nd rlilitates for an on-site examination of 
Jul-OS-98 13:07 P-09 

EquiCredi,t and NationsCredit, and for the denial of 

NationsBank Corp.‘s acquisition applications. 

First, examples of NationsBank’s banks, jn 1996 (the 

most reccznt year for which HMDA data is publicly available): 

NationsBank of Texas, N.A., in 1996 denied 47% of mcrtgage 

loan applications from African Americans, and on?) %O> of 

applications from whites, for a denial rate dispariLy of 

2.35-n- I~, significantly higher than that of the industry as 

a wholo. AS demonstrated beloci, NationsBank’s higher than 

indust.ry average denial rate di~spari.ties for mi.nori.tiCS 

cannot b$? explained or justified by greater than average 

outreach tc minority communities. 

NationsBank of Kentucky, N.A., in 1996 denied 4:!!. of 

applications from African Americans, and only 16:; of 

applications from whites, a denial rate disparity of 2.63- 

to-l, rwch higher than other banks. 

111 ::ht Memphis MSA in 1996, NationsBank of Tennessee, 

N.A., denied 497, of applications from African Americans, 

versus o~l?y 19% of appli.cations from whites, for a de:llial 

rate dijspari~ty of 2.58-to-l, hiyher t.han the industry 

averaqf .i!: this MSA. Meanwhil.e, Nat ionsBank of Te;inessee 

had a h&her market share of loans to whites t.har. to African 

Americans ln this MSA, rebutting any claim that 

Natior::;&lnk’s bank’s denial rate disparities are excused by 

greater Than average outreach to mi,norities. NationsBirnc 

Mortgage Corp. in this MSA is no better: while also having a 

higher market share of loans to whjtes than tc African 

Ameriran:s, it has a denial rate disparity between African 

American:, and whites of 2.25-to-l. 

Nat I orwide, NationsBanc Mortgage Corp. (“NBC;” by far 

the largc?sl: of NationsBank Corp.‘:; HMDA-reporting mori.gage 

lenders; in 1996 had a higher than 2-to-1 denial rate 

disparit:! bet.ween African Americans and whites. A:; 

demonstrated below [in connecti.on / comparison’s to 

NationsRank’s EquiCredit’s 1996 lending in the same MSAs), 

NMC’s record in particular markets is much worse. For 

example, in the Dallas, Texas MSA lheadquart.ers cf 

protesLant Black Citizens for Justice, Law and Order) In 

199G, NationsBanc Mortgage denied 36% of applications from 

African Americans, and only 10% of appl.ications from whites, 

a denial rat~e disparity of 3.6to-l, much higher than the 

industry’s average in this MSA oft 1.89-to-l. Meeriwhile in 

this MSA. NaLionsBanc Mortgage had a higher mark?1 share of 

loans to whites than to African Americans - NNC’s outrageous 

6 
.l”l-o8-9El 13:07 P-10 

denial rate disparity is NOT explained by greater Lhan 

averaTe (or even average) outreach to African Anerjcans. 

In the San Antonio, TX MSA in 1996, NationsDanc 

Mortgage denied 50% of applications from African Americans 

and only 9i: of applications Prom whites, for a denial rate 

disparity of 5.56-to-l, much hj.gher than the industry 

average in this MSA of 1.57-to-l. Meanwhile in this MSA, 

NMC had a 3.5 times higher market share of loans :o whites 

than to Afr.ican Americans. In this MSA in 1996, NMC denied 

Hispanics 2. 11 times more frequently t.han whites (compared 

to an industry average i.n this MSA of 1.70-to-l), while 

having a 1.5 times higher market share of loans to whites 

than to Hispanics. Again, NMC's outrageous denial rate 

disparity is NOT explained by greater than average (or even 

average) outreach to African Americans. 

In the Austj~n, TX MSA in 1996, NMC denied 21:~ of 

applicatiol:s from Hispanics, versus only 85 of applications 

from white:, for a denial rate disparity of 2.61-:0-l, while 

making 3!>& loans to whites and only 35 to Hispxics (and 

only 20 3 African Americans), entirel,y inconsisrent with 

the demo.grdpt1ic.s of (and other lenders' lending ir!) t.his 

MSA. 

In the E: Paso-Dona Ana County (TX-NM) MSA in i996, 

NationsH,3!lc Mortgage denied 24.i of applications from 

Hispanic::;, while denying only lo? of applicatio:s from 

white:;, For a denial rate disparity of 2.4, higher than the 

industry average in this MSA (less than Z-to-l). These 

disparil..ie:; are not explained by greater than average 

outreilch tact minorities: in this MSA, hwT?c had a hiyher market 

share of loarls to whites than to Hispanics, as did 

Natiorl:;IJank of Texas, N.A.. 

111 t:t,e Washington, D.C. MSA in 1996, NationsRank, N.A. 

denied 4:!.? of applications from African Americans, and only 

19'( of applications from whites, for % denial rate di~sparity 

of 2.21, hj.gher than the industry average in this MSA (less 

than ."-tL)-1). NationsBanc Mortgage was even worse in this 

MSA: it dc?rlied African Americclns 4.2 tines more frequently 

than whil,~es, while having a 3.2 5j. market share of loans to 

whites, and only a 1.665 market share of loans Ilr~ African 

American:;. The denial rate disparities are not cxslained by 

any greater tharl average (or even average) outreach to 

people of' color. 

t * * * * 

Natlor.sCredit, despite heioq a rr.ajor mortgage and home 

equity lender, refuses to report H+lDA data. While in some 

7 
J",-oI3-98 13:07 

1 

P. 11 

markets 1CP and its affiliates are reviewing Ndtii,nsCredit's 

lendinq by recorded mortgages, and while some leqal 

newspapers report lis pendens (see, e.g., New York Law 

Journal of May 28, 1397, reporting NYC lis pcndens o? / for 

NationsCredit Home Equity Services Corp.), it is diIficult 

withwt HM3A data to conduct the type of analysis set forth 

infra as to EquiCredit. ICF maintains that NationsCredit is 

violating HMDA. Most recently, ICP has been infor~med, by a 

HUD representative, that the FRB is responsible for the 

KMDA-re;orcing (and KMDA compliance) all of BHC 

subsidiaries, and has been directed to FRB HMDA conpliance 

staff. More forthcoming (on NationsCredit/fair lending)- but 

consider the following comparison of NationsBanc Mortgage 

Corp./s normal interest rate lending versus NationsBank's 

EquiCredit's high interest rate lending, in the same MSAz 

and etates, making out a prima facie case (or raising a red 

flag) of pricing discrimination and disparate treatment 

within the current NationsBank Corporation: 

In the Albuquerque, NM in 1996, NationsBanc Morl.gaqe denied 

42i of morr:cgage applications from Hispanics, and only 14?' of 

applicatiori:; from uhites (a denial rste disparity of 3-to1). NMC originated 24 loans to whites, and only I to 

HispanIcs This comment will call loans to the protected 

class (Xispanics or African Americans] divided by ioans to 

whites the "Index."' NMC's Index in this MSA in 1'296 was 

0.292. Meanwhile in this MSA, the higher interesi rate 

EquiCrcdit originated 43 1oap.s to Hispanics, and 59 loans to 

whites -~- Index of 0.860, 2.95 times higher than NXC's. NMC 

disproportionately denies people of color; NationsEank's 

EquiCrw~~r disproportionately targets people of color for 

higher Interest rate credit. 

In the Atlanta GA ISA in 1996, NationsBanc Mortqige denied 

17% oi nwrtqage applications from African Americans, and 

only ?i. of applications from whites (a denial rate disparity 

of 2.431. NMC originated 2,211 loans to whites, ;~nd 54; to 

Africa:: Americans. NMC's Index (see supral in tt.is MSA in 

1996 was 0,245. Meanwhile in this MSA, the higher interest 

rate F:qu:.Credit originated 80 ioans to African Americans, 

and 71 loanz to whites -- Index of 1.127, 4.6 times higher 

than NK c 

In tile Augusta GA MSA in 1996, NatlonsBanc Mortgdqe detr.ied 

If):, of wrtgage applications from African Americans, and 

' The rati<> between NMC's Index and NationsBank's 

QuiCredit'3 Index, calculated for each market analyzed 

ahove, csn be viewed as / called the "Disparity :or 

Targeting~) Index". 

8 
only Ei, of applications from whites (a der.ial rate di.sparity 

of 2.36). NW originated 333 loans to whites, and only 78 to 

Africarl Americans. NMC's Index in this MSA in 1996 was 

0.234. Meanwhile in this MSA, the higher interest rate 

EquiCredit originated 19 loans to African Americans, and 14 

loans to w!lites -- Index of 1.357, 5.8 times higher than 

NMC'S. 

In the Bakersfield CA MSA in 1996, (obviously relevant to 

this proposed merger), NationsBanc Mortgage made :I0 loans to 

whites, and only one to a Hispanic, Index of O.lOOJ. 

Meanwhile, EquiCredit made four loans to Hispanics and eight 

to whites, Index of 0.500, five times higher than NMC's. 

In the Baltimore, MO MSA (in NationsBank's CR4 assessment 

area) in 1996, NationsRanc Mortgage denied 17% of mortgage 

applicati,ons from African Americans, and 1l:j of applications 

from whites (a denial rate disparity of 1.55 -- !iee infra). 

NMC originated 695 loans to whites, and only 112 to African 

Americans. NMC's Index in this MSA in 1996 was 0.161. 

Mear,whiLe in this MSA, the hiqhcr interest rate EquiCredit 

originated 174 loans to African Americans, and 171 ioans to 

whites -- Lndex oft l.Olf?, 6.3 times higher than WiC's. 

EquiCrcd~it reported the same 11%) denial rate for African 

Ameri.:an,; and whites, contrary to NMC's denial rate 

disparity r,f 1.55-to-l. 

In tht Buffalo NY Msn in 1996, NatjonsBanc originated 61 

loans to whites, and only one loan to an African American. 

NMC'S Index in this MSA in 1996 was 0.013. Meanwhile in 

this MSA, Lhe higher interest rate EquiCredit originated 52 

loans to Afri~can Americans, and 62 loans to whites -- Index 

of O.rc36 I 66.3 times higher than NMC's. 

In the Charleston SC MSA (in NationsBank's CKA assessment 

area] in 1996, NationsBanc Mortgage denied 338 of mortgage 

applications from African Americans, and only 7: of 

applicilL.ons from whites la denial rate disparity uf 3.71). 

NMC oriqinated 915 loans Lo whites, and only 63 to African 

American:;. NMC's Index in this MSA in 1996 was 0.063. 

Meanwhjic! in this MSA, the hiqher interest rate Eq::itredit 

originated 10 loan? to Africaa Americans, and 15 loans to 

whites --- Index of 0.667, 9.67 times higher than WC's, 

In the Charlotte NC MSA (in NationsBank's CR.8 assessment 

area - NatIonsBank's headquarters MSA) in 1996, NaKionsRanc 

Mortgage denied 16% of mortgage applications from Afrj.can 

Americaris, and only '7; of applications from white:; (a denial 

rate disparity of 2.29). NMc originated 2,207 loans Lo 

whites, tind nnl~y 290 to African Americans, NMC's Index in 

this MSA in 1996 was 0.135. Meanwhile in this MSk, the 

higher interest rate EquiCredit originated 53 loans to 

Y 
Jul-08-98 13:oa 

! 

P.13 

African Americans, and 83 loans to whites -- Index uf 0.639, 

4.73 times higher than NMC's. 

In the Charlottesville VA MSA (in NationsBank's Crux 

assessment area) in 1996, NationsBanc Mortgage denied 22% of 

mortgaqe applications from African Americans, and only 9% of 

applicaLions from whites (a denial rate disparity of 2.44). 

NMC originated 234 loans to whites, and only 27 'ca Airican 

Americans. hiC's Index in this MSA in 1996 was P.115. 

Meanwhile in this MSA, the higher interest rate EquiCredit 

originated 4 loarks to African Americans, and 8 loan:; to 

whites -- Index of 0.500, 4.35 times higher than NK's. 

In the Chicauo IL MSA in 1996, NationsBanc Isortgage denied 

258 of mortgage applications from Hispanics, and 1Y:' of 

applicatioxs from African Americans, and only 8* cf 

applications from whites. NMC's denial rate disparity for 

HispJnics was 3.13; for African Americans i.t was 2.35. NMC 

oriqinated 1,080 loans to whites, and only 37 to Hispanics 

and only 33 to African Americans. In this MSA in 1996, 

NMC's Index for Hispanics wax 0.034, for African Americans 

it was 0.0'31.. Meanwhile in this MSA, the higher ir:I.erest 

rate Eq:liCr,edit originated 345 loans to African Americans, 

32 to H,ixpanics, and 164 to whites -- ~Indcx for African 

Americail!i cf 2.104, 67.9 times higher than NMC's.: Inciex for 

Hispanic!; of 0.195, 5.7 times higher than NMC's. 

In the Cincinnati OH in 1996, NationsBanc Mortgage 

origii1arod i69 loans to whites, and only THREE to African 

ivneriun::; . NW's Index in this MSA in 1996 was C.0~18. 

Meanwhile in this MSA, the higher interest rate EqJiCredit 

originattxi 8 loans to African Americans, and 54 loans to 

whites --- Index of 0.148, 8.22 times higher than NMC's. 

In the Cleveland OH MSA in lYY6, NationsBanc Mortgage denied 

20% Of mortgage JppliCJtiOns from African AmeriCans, and 

only 7': of appli~cations from whites la denial rate dl,sparity 

of 2.P6). NMC originated 251 loans to whites, and only 12 to 

African Americans. NMC's Index in Lhis MSA in 1996 was 

0.048. Meanwhile in this MSA, the higher interest rate 

EquiCreciit originated 191 loans to African Americans, and 

154 loarlz to whites -- Index of 1.240, 25.8 times higher 

than NMc's. 

In the Dallas TX MSA (in NationsRank's CRA assessment Jrea) 

In 1996, as partially analyzed supra, NationsRanc Mortgage 

denied ?f..!. of mortgage appiications from Africa!1 Americans, 

and only I@:, of applications from whites (a denial rate 

disparity of 3.60). NMC originated 91'7 loans to whij.tes, and 

only 7'1 to African Americans. NMC's Index in this XSA in 

1996 was O.rlH4. Meanwhile in this MSA, the higher interesl 
rate EquiCredit originated 7 loans to African Americans, and 

13 loans Lo whites -- Index of 0.538, 6.40 times higher than 

NMC'S. 

In the Danville VA MSA (in NationsBank's CRA assessmL'1It 

area) in 1996, NationsBanc Mortgaqe denied 11% of mortgage 

applicatioils from African Americans, and only 5';, of 

applications from whites (a denial rate disparity of 2.20). 

NMC originated 50 loans to whites, and only 8 to African 

Americans. NMC's: Index in this MSA in 1996 was 0.160. 

Meanwhile in this MSA, the higher interest rate EquiCredit 

originated G loans to African Americans, and 5 loans to 

whites -- Index of 1.200, 7.5 times higher than NMC's. 

In the Dayton OH in 1996, NationsBanc Mortgage originated 

111 loans to whites, and only THREE to African Americans. 

NMC's Index in this MSA in 1996 was 0.027. Meanwhile in 

this &A, l.he higher interest rate EquiCredit originated 82 

loans to African Americans, and 151 loans to whites -- Index 

of 0.543, 20.11 times higher than NMC's. 

In the Detroit, MI MSA in 1996, NationsBanc Mortgage denied 

32% of mortgage applications from African Americans, and 

only 51 a f applications from whites (a denial rate disparity 

of 4-to-?) NMC originated 350 loans to whites, and only 12 

to African Americans. WC's Index in this MSA in 1996 was 

0.034. Meanwhile in this MSA, the higher interest rate 

EquiCredit originated 156 loans to African Americans, and 

29G lc,;a:is Lowhites -- Index @f 0.521, 15.5 times higher 

than NMC's. 

In the 

area) i 

whites, 

Fort worth TX MSA (in NationsBank's CRA assessment 

.II 1996, NationsBanc Mortgage originated 423 ioans to 

and only 17 to African Americans. NMC's Index in 

this MSI\ in 1996 was 0.040. Meanwhile in this MSA, the 

higher~ unterest rate EquiCredit originated 4 loans to 

African Americans, and 4 loaris to whites -- Index of 1.000, 

25 times higher than NMC's. 

In the Greensboro NC MSA (in NationsBank's CRA assessment 

area) jr, 1996, NationsBanc Mortgage denied 21Y, of mortgage 

applications from African Americans, and only 75; of 

applications from whites (a denial rate disparity of 3-to1). NW c>riginated 703 loans to whites, and only 122 to 

African Americans. NMC's Index j.n this MSA in 1996 was 

0.174. Meanwhile in this MSA, the higher interest rate 

EquiCredit oriqinnted 105 loans to African Americans, and 

191 loars Lo whites -- Index of 0.550, 3.16 times higher 

than NK'S. 

In the Greenville SC MSA (in NationsBank's CRA assessKent 

area) in 1996, NationsBanc Mortgage denied 27% of mortgage 

II 
appliczations from African Americans, and only 7% cf 

applications from whites (a denial rate disparity of 3.86). 

NMC originated 936 loans to whites, and only 67 to African 

Americans. NMC's Index in this MSA in 1996 Was 0.0X'. 

Meanwhile in this MSA, the higher interest rate EquiCredit 

originated 33 loans to African Americans, and 104 loans t0 

whites -- Index of 0.317, 4.4 times higher than NMC's. 

In the Hartford CT in 1996, NationsBanc Mortgaye originated 

eight l,>ans to whites, and none to African Americans. 

Meanwhile in this MS.\, the higher interest rate Equicredit 

originated 41 loans to African Americans, and 44 loans to 

white:;. 

In the Houston 'IX MSA in 1996, NationsBanc Mortgaqe denied 

179 of mortqage applications from African Americans, and 

only al :ef applications from whites. NMC's denial rate 

dispariLy' lor African Americans was 2.13. NMC originated 

603 loans to whites, and only 96 to African Americans. In 

this M:;.A in 1996, NMC'S Index was 0.160. Meanwhile in this 

MSA, th:? hiqher interest rate EquiCredit originated 9 loans 

to Afri.can Americans, and 15 to whites -- Index for African 

Ameri<:an:? of 0. 600, 3.15 times higher than NMC's. 

In the Jackson MS in 1996, NntionsBanc Mortgaqe originated 

39 loan; t.ti whites, and none to African Americans. 

Meanwhile in this MSA, the higher interest rate EyuiCcedit 

originated 52 loans to African Americans, anti 34 loans to 

whites. 

1n the Jacksonville FL MSA (in NationsBank's CRA assessment 

area.) iri 1996, NationsBhnc Mortgage denied 36?, olc mortgaqe 

applicatio!~s from African Americans, and only Y‘i of 

applications from whites (a denial rate dispari.ty of 4-toIl. NMC originated 208 loans to whites, and only five to 

African Americans. NMC's Index in this MSA in 1996 was 

0.024. Meanwhile in this MSA, the higher interest rate 

EquiCredit originated 16 loans to African Americans, and 29 

loans to whites -- Index of 0.552, 23.0 times higher than 

NMC’E. 

In the Kansas City MO MSA (in NationsBank's CRA assessment 

area) in 1996, Nationsaanc Mortgage denied 20% of mortgage 

applicd:ions from African Americans, and only 6? 3f 

appli(:;il:ions from whites la denial rate disparity of 3.33- 

to-l). NMC originated 388 loans to whites, and only four to 

African Awricans. NMC's Index in this MSA in 1996 was 

0.010. Meanwhi~le in this MSA, the higher i~nteres: rate 

EquiCredit vriqinated 25 loans to African Americans, and 60 

loans t.c whites -- Index of 0.417, 41.7 times higher than 

NMC'S. 

I2 
.3”1-08-98 13:09 

In the Los Angeles CA MSA in 1996, NationsBanc Fortqage 

originated 1,251 loans to whites, and only 126 to Hjspanics 

and only 24 to African Americans. In this MSA in 1996, 

N?K's Index for Hispanics was 0.101, for African Americans 

it was 0.019. Meanwhile in this MSA, the higher interest 

rate EquiCredit originated 26 loans to African Americans, 39 

to Hisp3:lic:s, and 24 to whites -- Index for African 

Amer~icilns Iof 1.083, 57.0 times higher than NMc's; Index for 

Hispanizzs of 1.625, 16.1 times higher than NMC's. 

In the Memphis TN MSA (in NationsBank's CRT+ Jsscssment area) 

in 1996, NationsBanc Mortgage denied 18% of mortqage 

applicaciocs from African Americans, and only 8$ of 

applications from whites (a denial rate disparity of 2.25- 

to-l). NMC originated 176 loans to whites, and only 65 to 

African Americans. NMC's Index i.n this MSA in 1996 was 

0.369. Meanwhile in this MSA, the higher inter~est rate 

EquiCredit originated 248 loans to African Americans, and 52 

loans to whites -- Index of 4.769, 12.9 times higher than 

NMC'S. 

In the Nashville TN MSA (in NationsBank's CRA assessment 

area) it> 1996, NationsBarK Mortgage derlied 20% oft mortqaye 

Jpplical:ior!s from African Americans, and only 6% of 

applications from whites (a denial rate disparity of 3.33- 

to-l). NMMC originated 1,525 loans to whites, and o:lly 712 to 

ATrlcJn mcricans. NMC's Index in this MSA in 1996 was 

0.047. Meanwhile in this MS?,, the higher interest rate 

F.quiCrrdit originated 101 loans to African IL%ericans, and 

102 loan:; to whites -- Index of 0.555, 11.9 times higher 

than NMC's. 

in the New York NY MSA in 1996, NationsBanc Mortqage 

originated 31 loans to whites, and only two to Hispanics and 

only 7 1.0 African Americans. In this MSA in 1996, NMC's 

Index for Hispanics was 0.065, for African Americans it was 

0.226. Meanwhile in this MSA, the higher interest rale 

EquiCr'cdit originated 10 loarls to African Americar:!;, 3 to 

Hispanics, and 8 to whites -- Index for African Arrericans of 

1.250, 5.5 times higher than NMC's; Index for Hisp';lnics of 

0.315, 5.8 %imes higher than NMC's. 

In the Norfolk VA MSA (in NationsBank's CP.A assessnent area) 

in 1496, NationsBanc Mortgage denied 202 of mortgaye 

applications from African Americans, and only 7!. '3 

applications from whites (a denial rate disparity of 2.86- 

to-l). WC originated 988 loans to whites, and only 100 to 

African Americans. NMC's Index in this MSA in 1996 was 

O.lCJl. Meanwhile in this MSA, the higher interest rate 

EquiCr,edit originat~ed 4: loans to African Americans, and 21 

13 
loans IXJ whites -- Index of 2.000, 19.8 times higher than 

NMC'S. 

In the Oakland cA MSA in 1996, NationsBanc Mortgage denied 

33% ot mortgage applications from African Americans, and 

only 15?: of applications from whites (a denial rate 

disparity fif 2.2-to-11. N?iC originated 923 loans to whites, 

and only 3i3 to African Americans. NMC's Index in this MSA 

in 1996 was 0.033. Meanwhile in this MSA, the higher 

interest rate EquiCredit originated 27 loans to African 

Americans, and 23 loans to whites -- Index of O.YG4, '29.2 

times higher than NMC's. 

In the Philadelphia PA MSA in 1996, NationsBanc Mortgage 

oriqinated 209 loans to whites, and only seven to African 

AmeGicans. In this MSA in 1996, NMC's index was C.C33. 

Meanwhile,in this MSA, the higher interest rate EquiCredit 

originated 218 loans to African Americans, and 51 to whites 

-- Index for African Americans of 1.083, 129.5 times higher 

than NMC'S. 

In the Phoenix AZ MSA in 1996, NationsSanc Mortgage 

originated 446 loans to whites, and only nine to Hispanics 

and only two to African Americar.s. In this MSA ir: 1996, 

NMC's Index for Hispanics was 0.020, for African Americans 

it was '1.004. Meanwhile in this MSA, the higher inrerest 

rate Eql:i.Credit: originated 14 loans to African Americans, 41 

to Ilizp,3nics, and 198 to whites -- Index for African 

Americar1.s cf 0.070, 1'1.5 r:imes higher than NW's; Index for 

Hispanics cf 0.207, 10.3 times higher than NMC's. 

In the Raleigh-Durham NC MSA (in NationsBank's CRT\ 

assessment area) in 1996, NationsBanc Mottqaqe denled 203 of 

mortgayf? applications from African Americans, and only 5% of 

applicaticns from whites (a denial rate disparity of 4-k1). NMC originated 944 loans to whites, and only 171 110 

African Arrericann. NMC's Index in this MSA in 1996 was 

0.139. Meanwhile in this MSA, the higher interest rate 

EquiCredit origiE.ated 28 loans to African Americar.5, and 21 

loans 1.o whites -- Index of 1.333, 7.2 times higher than 

NMC'S. 

In the Richmond VA MSA (in NationsBank's CKA asses!;ment 

<area) in 1996, NationsBanc Mortgage denied 23% of mortgage 

applications from African Americans, and only 71 of 

applications from brhites (a denial rate disparity of 3.29- 

to-l). hMC originated 1,010 1oar.s to whites, and only 198 to 

African Americans. NMC’s Index in this MSA in 1996 was 

0.196. Meanwhile in this MSA, the higher intesesL rate 

EquiCredit originated 31 loans to African Americans, and 46 

14 
loans Lrl whites -- Index of 1.978, 10.1 times higher than 

NMC's. 

In the Riverside CA MSA in 1996, NationsBanc Mortgage 

originated 113 loans to whites, and only 11 to Hispanics and 

only seven to African Americans. In this MSA in 1936, NMC's 

Index for Irispanics was 0.143, for African Americans it was 

0.059. Meanwhile in this MSA, the higher interest rate 

EquiCredit originated 14 loans to African Americans, 19 to 

Hispanics, and 44 to whites -- Index for African Americans 

of OJ18, 5.4 Limes hiyhcr Ghan NXC's; Index for Hispanics 

Oft 0.432, 3.0 times higher than NMC's.. 

In the Roanoke VA MSA (in NationsBank's CRA assessment area) 

in 1996, NationsBanc Mortgage denied 12% of mortgage 

applications from African Americans, and only S'i, or 

app.,lii:aitiulss fromwhites (a denial rate disparity of 2.4-to1). NMC originated 275 loans to whites, and only 13 to 

African Americans. NMC's Index in this MSA in 1936 Was 

0.047. Meanwhile in this MSA, the higher interest rate 

EquiCreciit origir\ated 3 loans to African American!:. and 9 

1oar.s 1.1, whites -- Index of 0.333, 7.1 times higher than 

NMC'S. 

In the Sacramento CA MSA in 1996, NationsBanc Mortgage 

original_rd 634 loans to whites, and only 24 to Hispanics and 

only pi? tc African Americans. In this MSA in 1996, NMC's 

Index for llispanics was 0.037, for African Americans it was 

0.013. Meanwhile in this MSA, the higher interest rate 

EquiCredit oriyinated 3 loans to African American:;, 4 to 

Hispanics, and 31 to whites -- Tndex for African Ame.ricans 

of 0.09', 5.1 times higher than NMC's; Index for Xispanics 

of 0.3?1, 3.5 times hiqher than PiiC's. 

In the St. Louis MO MSA (in NationsBank's CRA assessment 

area) iri 1996, NationsBanc Mortgage originated 363 loans to 

whites, and only eiyht to African Americans. NMC's Index in 

this MSA in 1996 was 0.022. Meanwhile in this M!;A, the 

higher- interest rate EquiCredit originated 191 loa:ls to 

African Americans, and 288 loans to whiles -- Index of 

0.663, SO.1 times higher than NMC's. 

In the San Diego CA MSA in 1996, NationsBanc Mortqage 

origLnatcd 522 loans to whites, and only 12 to Hispanics and 

only six tn,African Americans. In this MSA in 1936, h?K's 

Index cc.r Hispanics was 0.023, for African Americans it was 

0.011. Meanwhile in this MSA, the higher interest rate 

EquiCredit originated three loans to African Americans, 

seven tc Hispanics, and 14 to whites -- Index for African 

Americans of 0.214, 90.9 times higher than NMC's; Index for 

Hispar.ic‘s of 0.500, 22.7 times higher than NMC's. 

IS 
. 

.Ju,-08-98 13-11 

In the Santa Fe NM in 1996, NatiorlsBanc Mortgage originated 

:l6 loans t.3 whites, and only one to a Hispanic household. 

NMC's index in this MSA in 1996 was 0.063. Meallwhile in 

this MSA, the higher interest rate Equicredit originated 5 

loans to Hispanics, and 5 loans Vo whites -- Index of 1.000, 

15.9 times higher than NMc's. 

Tn the Tucson AZ MS4 in 1996, NationsBanc Mortgacje 

originated 75 loans to whites, and only two to Hispar.ics and 

only one to an African American. In this MSA in 1991,, NMC's 

Index for Hispanics was 0.027, for African Americans it was 

0.013. Meanwhile in this MSA, the higher interest. l-ate 

EquiCredit originated six loans to African Americans, 20 co 

HIspanics, and 32 to whites -- Index for African Americans 

of 0.188, 14.5 times higher than NMC'S: Index for Hispanics 

of 0.625, 23.1 times higher than NMC's. 

In the T&a OK MSA (in NationsBank's CRA assessmenl. area) 

in 1996, NztionsBanc Mortgage @riginated 124 loans to 

whites, and only one to an African American. NW's Index in 

this MSA in 1996 was 0.008. Meanwhile in this WA, the 

higher interest rate EquiCredit originated 21 1oa:ls tc 

African Americans, and 44 loaris to whites -- Index of 0.477, 

59.6 times tligher Lhan h%C's. 

In the Washinqton DC HSA (in RationsBank's CRA assessment 

area1 in 1996, partially analyzed above, NationsBanc 

Mortgag,? derlied 21" of mortgage applications froir. African 

?,meri canii, and only 5" of applications from whites (a denial 

rate di:<par1ty of 4.2-to-l). NMC originated 2,851 ln;lns to 

white:;, and only 442 to African Americans. NPlC's Index in 

this MSA in 1996 was 0.155. Meanwhile in this MSA, the 

higher interest rate EquiCrediL originated 100 loans to 

African Americans, and 48 loans to whites -- Index of 2.083, 

13.4 timas higher than NMC's. 

In the Wilmington DE MSA in 1996, NationsBanc Mortqilge 

originated 36 loans to whites, and only two to African 

Americans. NMC's Index in this MSA in 1990; was 3.056. 

Meanwhilf: in this XSA, the higher interest rate EquiCredit 

origiriatrd 54 loans to hfricar. Americans, and 77 loans to 

whites -.- Index of 0.701, 12.5 times higher than h?K':r. 

In the Wilminqton NC MSA (in NationsRank's CRA assessment 

area) ir, 1996, NationsBanG Mortgaqe oriqinated 202 loans to 

whites;, and only nine to African Americans. NMC'S Icdex 

l;;z ;(,;~~a) in thi., - MSA in 1996 was 0.045. Meanwhii~e in 

S , the h~igher interest rate EquiCredit orlqinated 4 

loans kc African Americans, and 15 loans to whites --. Tndex 

of 0.267, S.Cj times higher than NMC's. 
The above analysis makes out a prima facie case (and/or 

red flag) that NationsBank Corp., through its normal 

interest. rate lenders including NationsBanc Mortgage and 

through its higher interest rate lenders, including 

EquiCrcdit [and Nationscredit) are engaged in lending 

discrimination, including pricing discrimination. On this 

record, the FBB must conduct on-site fair lending 

examinations of EquiCredit, NationsCredit and NMC. On the 

current record, this meqa-merger proposal, which wonld 

expand NatlonsBank Corp.'5 practices, must be denied. 

ICP can be reached at (718) 716-3540. 

17 
July 10, 1998 

My name is Regina Blosser. I am board secretary for the Oceanview Merced 

Heights - Neighbors in Action. We are a public safety and neighborhood improvement 

organization in the Oceanview area of San Francisco. 

The Federal Reserve sent me a copy of the "Bank of America closure policy 

adopted by the Social Policy Corronittee of Bof A on September 14, 1993. 

I wish to read it to you, item by item, and then tell you how we perceive 

that, BofA does not follow its own closure policy. 

1. BankAmerica is obviously not corranitted to serving our community because it closed 

our only bank in the Ocean View district in March of 1997. 

2.BofA d~iLd not strive to do anything to minimize the negative impact in our community 

In fact, phone calls we make to the Comunity Development Department have not 

been returned most of the time. 

3. If there was a review and concurrence of the Corporate Community Development 

department, we were never shown any documentation of this review. We want to 

see this review. 

4 Again, we wish to see the review of the closure recorrmendations. We would like 

to see if this review includes the prediction of the negative impacts our merchants 

have experienced,such as loss of deposit and change making services and the time that 

neighbors must use in their day to go to a bank now. 

5. If there was an action plan to mitigate the adverse impacts on our community, 

we have not seen any representative or action from &&America since our branch 

closure in March of 1997. 

6. BankAmerica chose the Geneva-??ission branch to be the receiving branch. This 

branch is more than a mile away from our closed branch. Anyone dependent on public 

transportation must transfer to another bus to get there. A large freeway creates 

a barrier to access to this branch from our neighborhood. 

7. Our conrmunity, the Oceanview district of San Francisco has a racially diverse 

and working class population. In the 1950's it became majority African American. 

Income levels on average are low by San Francisco standards because we have many 

retired and affordable housing residents. 

8. We have no other banks in the Ocean View district. The BankAmerica Corporate 

Community Development department could and can easily see that. 

9. We tried to help the branch stay open. We promised the district manager that 

we would find 900 new customers for the branch if it would only stay to give Us 

a chance. We stated in many'letters from our churches and organizations thaTthe 

branch was important to us and our merchants. We gathered petitions and protested 

publicly. Again, BankAmerica's evaluation was already made and the bank ev?,luatior. 

was not going to be changed by our efforts. 

10. The only level of service offered to us was to direct us to a branch a mile 

away. 
11. We suggested security service at the ATM's and we requested a shuttle for 

disabled and seniors to the receiving branch. These ideas were disregarded by 

bank executives. 

I am submitting a map with my testimony that shows all branches located in San 

Francisco. The green circles indicate a 5 mile distance from all branches. 

Blank areas are usually industrial, park land or residential with&o cmercial 

zone. You can see that many BankAmerica branches in our neighborhood commercial 

districts are less than one mile from each other. The red area is our neighborhood. 

The yellow lines show where tanks are so numerous that the street has 3 or more 

banks per block. Neighbors by the yellow lines complain that they would like 

to have something besides banks on their cormnercial strips. You will be able 

to see that our neighborhood, when compared to other parts of the city has less 

banking service than the rest of San Francisco. 

Numerous nonprofits have come to you to state their satisfaction with these banks' 

financing of their,programs. This is fine but the only thing our neighbors and 

merchants want is a bank! We feel no desire for charitable giving. 

Supervisor Jose Medina passed a resolution unanimously at our Board of Supervisors 

that urged the Bank of America to stay or find another bank for our neighborhood. 

The BankAmerica did not comply with his resolution because we have no bank. When 

the Mayor's Office of Economic Development suggested that Sterling Bank could 

move into the vacated BankAmerica branch building, Bof A refused to remove its 

ATM's so Sterling would not move in to the building. We have tried to find a 

credit union would serve our neighbors but the American Bankers Association 

lawsuit against credit unions won at the Supreme Court level has presently 

stopped our efforts to use a credit union. 

We want to take care of ourselves. We are trying to stop the decline of our 

neighborhood commercial district. We have asked our neighbors to make contacts 

with banks to invite them to open a branch on Ocean Avenue. So far no luck. 

Perhaps if BankAmerica had followed its own c:'losure policy, our neighborhood 

would be much better off today. 
Ji~-?2-?998 15: 31 FROM BFN( rJ= MZRICR a3246 TO 76-1 P.e2 

Bank of Anterka Branch Uosuti Policy 

September 1993 

~6) Bank of America is wmmltted t&providing aax& to bankin 

8 

nicas to all members of its 

community through both physical branches and tQkS0M’d urthermore, the Bank tin 

reasonably &ive to minimize any negative impact on the community. 

c3 

Review and ooncurrenca by Corporate Community Development must be an integral part of 

Caliiomiti Retail Banking’s branch dosure decision process. . 

fP 

nce a branch has been idefied for potential ctosure, a repfZSentatiVe imm Corpo& 

Community De)!elopment will review c&we recommendations to ensure that any potM% 

negative impacts on the co unities in Its serving area am identified and indud@ ins 

subsequent consideratio & action plan to mitigate any adverse impads on the 

community or its residents must be developed and integt-zzted into the closure plan prior to 

the final dosure decision being made, and approval given by Corporate Community 

Development’s senior officer. 

0 6 Community factors to be considered when a 

@? 

posed branch closure is being evaluated 

must include; distance to the receiving branc he economic and ethnic characteristics of the 

impacted oommuntie@he presence (or lack there of) of other financial service wmpan?es in 

the closing branch’s ~serving area, pending economic developrnefl activities, the effect on 

service levels pmvided the entire community, partiatlariy low- d moderateincome 

segments of the comtiunity, and other relevant consideration % ecause each branch is 

unique, each proposed closure is evaluated on the basis of its indiidual drcumstanms and 

performance. 

/;)- /O, PflOr to closing offices, Bank of America assesses the potential im 

- p”bn, 

on its ability to 

continue offering appropriate levels of service to the local community. ‘s assessment 

inctudes taldng into consideration information and ideas obtained from members of the 

community to minimize the impact of an off& closing. 

__ 

Adopted September 14.1993 by Sodal Policy Committee 

cratirdospl