"High Cost Lending on Indian Reservations –Watch Out if You Are Buying a Home"

National American Indian Housing Council and the National Community Reinvestment Coalition- 030141

Abstract Number: 030141

July 2003

Between the months of March and June of 2003, the National American Indian Housing Council (NAIHC) and the National Community Reinvestment Coalition (NCRC) conducted a survey to ascertain the extent to which predatory lending occurs in tribal areas and to detect where abusive lenders are most prominent. NCRC's Home Mortgage Disclosure Act (HMDA) data was integrated with the survey results and included with the report. The survey revealed that 52% of respondents felt that lenders discriminated based on race and that Native Americans are twice as likely as Caucasians to receive high cost mortgage loans. The survey indicated that Native Americans in New Mexico were 6 times more likely than their white counterparts to incur high cost loans.

Other Considerable Findings of the Survey:

• 48.6% of survey respondents reported that predatory lending practices were common on tribal land, targeting first-time homebuyers and buyers of manufactured or mobile homes.
• 54% reported that consumers on reservations received loans with interest rates of 9% or more, with 15% being the average, and 30% the highest rate indicated.
• Reservations in New Mexico, South Dakota and North Dakota were reported to present the greatest amount of predatory lending, according to survey respondents.

NCRC and NAIHC have partnered together in efforts to fight predatory lending and to prevent future generations of Native Americans from becoming victimized by abusive lending practices. Mediation services have been offered as well as negotiations with lenders. When negotiations fail, legal action is taken and complaints are filed with the U.S Department of Housing and Urban Development against the lender. For more information on this study, access the report below as a PDF document.

Contact Information:

Rachel Maleh
National Community Reinvestment Coalition
733 15th Street, NW, Suite 540
Washington, DC 20005
Phone: (202) 628-8866
Fax: (202) 628-9800
rmaleh@ncrc.org

Additional Information:

• National American Indian Housing Council and National Community Reinvestment Coalition, "High Cost Lending on Indian Reservations – Watch Out if You Are Buying a Home: A Survey Report and Data Analysis by NAIHC and NCRC," June 2003. ( 1.2mb)

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