So far, the special lending programs have not lost money. In fact, they are generally outperforming conventional home loan portfolios. But banks say they anticipate problems when they try selling the loans, as has been recommended by the Federal Reserve Bank. The regulatory agency considers the loans too risky for a bank to hold until maturity. Still, many see an enduring commitment among some lenders.
Lenders say they believe a majority of loan recipients are black.
Trust Company Bank, First Atlanta and the AMC had no records available, but spokesmen predicted similar ratios. Loan recipients say their lives have changed. Now I don't have to pay someone else's mortgage. In general, there have been as many loan applicants rejected as accepted. Maurice Dukes has seen a lot of rejections, usually for credit reasons.