Executive Summary
The Second Annual Credit Union Research Colloquium was held November 10–11, 1993 at the University of Virginia. The objective of both colloquiums has been to stimulate an informed dialogue between and among academic researchers and credit union practitioners. The 1993 Research Colloquium was entitled Lending: Key to Growth and Survival. This colloquium covered a series of issues. This monograph reports the proceedings of the sessions devoted to issue of lending discrimination. The focus on the papers and the discussion was on what we know about this issue and what type of additional research would promote informed decisions.
What is this research about?
Bonnie Guiton Hill (Dean, McIntire School of Commerce) began the colloquium with introductory comments. Professor Robert Schweitzer, (University of Delaware) presented a paper that surveys the professional literature and discussed where we stand after 25 years of research on lending discrimination. Following the presentation of his paper, Thomas J. Hughes (President and CEO of Navy Federal Credit Union) discussed the issue from the viewpoint of a CEO whose credit union is actively engaged in the mortgage lending and Professor Harold Black (University of Tennessee) discussed the issue from an academic viewpoint, as well as that of someone who has been actively involved in consulting on this issue with financial institutions and governmental agencies. In the next session, Professor Robert A. Eisenbeis (University of North Carolina) suggested topic areas for additional research leading to informed policymaking, and Professor Robert W. Johnson (Purdue University) presented a report on current research that takes an innovative look at credit-granting criteria.
What are the credit union implications?
Lending is a critical topic for Congress, the Federal Reserve, and consumers' groups. If all vestiges of discrimination from the lending process are not eliminated, then more regulations will be implemented to rectify the situation. Only a clear understanding and solid information on these issues will lead to formulating the "right" public policy.
The report is sponsored by the Center for Financial Services Studies at the University of Virginia, McIntire School of Commerce, the Center for Credit Union Research at the University of Wisconsin-Madison, School of Business, and Filene Research Institute.
