INDIANAPOLIS (WISH) — The Fair Housing Center of Central Indiana blasted mortgage lender BMO Harris for not doing enough for Black Americans in Indianapolis. Last year, their study found the lender approved only 13 loans for Black Americans compared to 122 loans for White Americans in the city.

The nonprofit also found BMO Harris had the fifth-worst denial rate for Black applicants at 55%.

“This has been a long-term trend with a number of lenders, but in particular BMO Harris, which has been significantly under performing where their peers are,” said Amy Nelson, executive director at Fair Housing Center of Central Indiana. “Whether that’s in their outreach in reaching people of color to even apply for mortgages, but also those that do apply. Do they receive mortgages?”

Fair Housing Center of Central Indiana’s mission is to provide affordable and accessible housing to all communities.

While the study revealed that there are other banks that have worse stats than BMO Harris, like The National Bank of Indianapolis and the U.S. Bank National Association, the Fair Housing Center wanted to highlight BMO Harris because of their commitment with the National Community Reinvestment Coalition. The national project is a $40-billion investment towards diversifying homeownership, and it started two years ago.

“We had concerns that unless they had specific metrics that they had to achieve to get them in line with their peers, that Indianapolis wasn’t going to get the attention it needed,” Nelson said.

Nelson said the lender didn’t have specific stats in Indianapolis, and that’s why its hard for the organization see the housing inequality in Indianapolis.

A representative for BMO Harris provided the following statement:

“BMO is committed to bringing opportunities for affordable homeownership to families in Indiana and across our footprint. We continuously look for ways to increase outreach and support to minority borrowers.”

The company says they have a special purpose credit program that can assist with down payment for minority borrowers in Indy. That program, the spokesperson said, offers up to $13,000, and can be in addition with other programs that can provide nearly $30,000 in assistance, thereby increasing BMO’s mortgage/closed end lending to Black borrowers to 17% in 2024 (through August) in Marion County.

The spokesperson said they have 15 branches in Marion County, nine of which are located in or serving low-to-moderate income (LMI) communities.

Nelson fired back to say that just because the lender has locations in LMI areas doesn’t mean branches are located in predominantly neighborhoods of color. She said there were no BMO branches or mortgage offices in majority neighborhoods of color.

“It’s unsettling of course, but it doesn’t surprise me,” said Leslie Etienne, assistant professor and director of Africana Studies at IU Indianapolis. “Housing and place have long been a front of struggle in the Black experience.”

Etienne said businesses like BMO should look at the stats, change their practices, and reach out to the communities.

“One of the hallmarks of making it is the idea that you’re able to own your own home, your own car, anything like that,” Etienne said. “If you think about the impact of it, there’s a psychological piece, a historical piece. You have to think about. And quite frankly, the more home owners we have, the better off financially with the tax base.”

Historically, Black Americans have faced unfair housing practices, not just in Indianapolis, but nationally.

“The hope is that if you’re caught up in this report, that the intentionality as response is to change your practices and be more inclusive in how you operate,” Etienne said.