We have had another instance of a person seeking conventional financing for a home in our area and again coming up against a blank wall.
Unless we, as a neighborhood and individuals, start complaining to these savings and loan companies, responsible people seeking a home in our area and those selling homes will have only one recourse, FHA financing.
This discrimination against our area must end! Therefore, we are urging every area resident who has money in any of the following savings and loan companies to write these companies and express your feelings. For that matter let your feelings be known even if you don’t have money in these companies.
The following is a listing of the companies which refused a loan for Joseph Flynn who with two friends is trying to buy a house on 6100 Washington. Both Jo and his two friends have steady jobs and if one would default on the loan the others would be liable. At no time were they refused on the basis of their credit rating. Instead at least one company led them to believe that their loan would be approved, so that they gave notice on their apartments. They have been seeking a 20 per cent loan since November.
They were refused at the following companies for the following reasons:
Mutual Federal — could not get past secretary, was told that company did not accept loans for this area.
Roosevelt Federal — The company approved their credit application and set out an inspector for the house. Since the company gave no notice of the visits, the inspector was not able to get into the house, but came back and reported that the house was in a terrible neighborhood. A bank vice president relayed this news and the refusal of the loan to Mr. Flynn.
Missouri Savings and Loan — The three seeking the loan paid the company $10 a piece to run a credit check which was approved. An inspector then went out to appraise the house. The company sent a three-line letter stating that they could not accept loan application and gave no reason for the refusal.
Cass Federal — Could not get past the first stages — no loans for this area.
The sequel to this sad story will be reported in the next issue. Meanwhile, write these companies.
Originally published in The Paper, February 1972.
Read this article in the original newspaper issue.
Original source: SD_Times1972_02.pdf, printed page 2.
