The Journal Times from Racine, Wisconsin • 35

2F Nation 3F Movies 4F the Journal Times SUNDAY November 15, 1992 SECTION i home off their own If? State banks don't face the surprise PAUL J. HOLLEY Business Editor w.w 1 111 5 'I 1 1 rrM-rmX I Class helps family ge: their dream A few weeks ago, would-be president Ross Perot raised a lot of eyebrows with his prediction of a "December surprise." Perot claimed that when new, more stringent federal banking rules kick in Dec. 19, regulators would swiftly close a lot of banks. Stories by PAUL HOLLEY Business Editor 4 i i 4 Try as they might, Irene and Joseph Urick just couldn't make the break from renting to home ownership. "We'd been renting for years and years and were never able to buy a home," said Irene, 32, a receptionist at the Community Action Agency.

"We had enough When that happens, the country could be in bad he warned. Toby Sherry, Wisconsin of banking, isn't spooked by Perot or anybody ON THE STREET Doit Si rilit? i. -I V-: I AjMrV CHARLES S. VALLONE Jouma Times A The Urick family gathers at the table for dinner. With the together a package to buy their first home.

From left are, Mathew, help of the Community Homebuyers Class, they were able to put 3, Joseph 11, Joseph Irene, and Anthony, 9. First of a three-part series to make our monthly payments, but couldn't come up with a down payment." That all changed in May 1991, when Irene and Joseph, 31, a construction worker, enrolled in the first Community Home Buyers Class. In August of that year, the couple and their three sons, ages 11, 9 and 3, moved into their very own three-bedroom home on North Green Bay Road in the Town of Caledonia. The Community Home Buyers -Class is an educational program co-sponsored by the Racine County Housing Authority, Community Action Agency, Salvation Army, Heritage Bank and Trust, Family Services, Racine Mutual Housing Association, Center for mortgage that will fit their needs. Eight families have purchased homes after completing the Community Home Buyers Class.

"We thought we'd just find a place and buy it. But, there was much more to it," said Irene Urick. "People just don't know what you have to do." For the Uricks, the home ownership path meant carefully budgeting their money. Irene said their annual income dropped to about $30,000 for about 18 months while illness kept Joseph from working. The family's cash flow eventually recovered but they didn't have a handle on where the Community Concerns, Wisconsin Natural Gas Co.

and Wisconsin Electric Power Co. Participants attend eight hours of instruction held over two Saturdays. Volunteers teach budgeting, mortgage financing, negotiations and what's behind the barrage of paperwork when a home is purchased. Graduates learn if they can qualify for a home loan. If they can't qualify, they find out what they can do to improve their financial picture.

Participants are encouraged to shop around among lenders and lending programs to find a you're buying something that big and knowing that you'll paying for it for a long time to come." Yet, the Uricks are glad they bought. "Everybody's so much happier all the way around," said Irene. "The boys have room to run and play. We have a garage, a shed and a yard. "Every chance I get, I tell people about the class." Community Home Buyers Class sessions are held about six times a year.

Information about upcoming sessions is available from the Racine County Housing Authority (636-3405) or the Community Action Agency (633-1883). money was going. "We'd get the money and go do it," she said. "Now, we budget for everything haircuts, insurance, the newspaper, every little thing that you never think of." Today, the Uricks' monthly house payment is triple the $240 they once paid in rent. But Irene said by carefully managing their money, the family has been able to handle the expense.

They've even been able to apply extra money to their home loan. "We were really scared about going from a rental to buying and making the payments," she said. "I think it's scary to know that else. He rushed out a press release stating that Wisconsin's 444 banks aren't on the endangered species list. To be specific, the new regulations refer to banks with equity capital of 2 percent or less of total assets.

Banks that fall into that "critically undercapitalized" category may be closed immediately, starting Dec. 19. "We have no banks in Wisconsin, state or national, that have an equity capital ratio of less than 2 percent," Sherry said in a statement. "It's going to be an awfully quiet December in Wisconsin." In fact, a federal banking official quoted by Sherry says there are fewer than 50 institutions throughout the country that face potential closure because of undercapitalization. Perot may not be entirely off base, however.

The billionaire's home state of Texas is among the places with eligible "December surprise" banks. AN UPDATE. Towne Pizzeria handed its president and co-founder, Will Lepeska, a nice birthday gift two weeks ago. The fledgling company's three pizza outlets all turned a profit. Towne, which opened in August, bakes and sells pizzas from tiny kitchens at Racine's Paradise Lanes and in bowling centers in Lake Geneva and Waukegan, 111.

Lepeska says the one day of profitability was nice and he's hoping for more. Towne has marketed its free-standing pizza kitchens to bowling centers but Lepeska is also looking at a school, a shopping mall, an industry and possibly a portable unit. "Essentially, we're on target," he says. BUILDING PLANS. CJW an area beer distributor, hopes to build an warehouse and office, just south of the corner of Chicory Road and South Memorial Drive in Mount Pleasant.

The project is waiting for site plan approval. MORE NAME GAME: The name changes just keep on coming. The latest is Peacock Jewelry, 335 Main St. The business is now known as Peacock Boutique. ANOTHER LOCATIONi Ray and Colleen Biddle, operators of Sunshine Sweet Shop, 3115 15th have opened a second shop in West-gate Mall near ShopKo.

In addition to hand-dipped chocolates and other goodies, the mall location has a lunch counter serving soups and sandwiches. Your contributions to "On The Street" are welcome. Write me In care of the Journal Times, call me at 634-3322 or lax items to 631-1702. Minority activists seek new ways to boost lending, home ownership 'i. M' I Community activists find the list of active community lenders is short.

"If I had to name off a list of banks, it would be difficult," said Rodney Brooks, director of the Urban League of Racine and Kenosha. "We're not satisfied with the response overall." "I haven't seen anybody come forward and offer to help in terms of community reinvestment," said Pat Obernberger, director of the Southside Revitalization Corp. "We're here, and we're willing to work with any bank willing to work with us." Obernberger noted the present situation may soon change. She was asked to join Bank One Racine's community advisory committee and has been in touch with an official of Bank of Racine. George Stinson, president of the National Association for the Advancement of Colored People-Racine Chapter, said bank visits are on his agenda in the coming months.

Stinson said he and others in the minority community found resistance when they proposed that several local banks band together to create a small business loan pool. The NAACP's Fair Share Committee is now looking at ways to work with financial institutions to boost home lending. Racine's proximity to Milwaukee can be a liability in terms of community reinvestment, said Kevin Dunk of the Racine County Housing Authority. The federal Community Reinvestment Act requires banks and thrifts to document their lending programs and policies but out-of-town institutions seem to rely on their Milwaukee efforts to follow the law, he said. "I think the attitude of some is, 'We are in Racine simply because of our geographic Dunk said.

A few institutions stand out, activists say. Some examples: Bank of Elmwood won the NAACP-Racine Chapter's Industry Award in 1990. It also participates in the Personal Economics Program in which bank representatives share banking principles at local schools. Bank One Racine includes representatives from the Spanish Center and the Southside Revitalization Corp. on its community advisory committee.

The committee reviews the bank's outreach, marketing and lending efforts. Bank One has also distributed fliers printed in Spanish promoting its economy checking accounts and community loan program. The bank won the 1992 Industry Award from the NAACP-Racine Chapter. First Bank Southeast ran a banking services seminar with a biligual translator at the Spanish Center. The center's director, Tony Gomez, praised the bank and its president, Tom Daniels, for the extra effort.

"That's true outreach. That's what needs to be done," Gomez said. Firstar Bank Racine has held homebuyer education Mortgage applicants denied CHARLES S. VALLONE Journal Times Linda Ayala of. Bank One teaches classes and seminars on home buying at the Spanish Center and the Southside Revitalization Center.

Bank One prints home loan flyers in Spanish. White Black White Blacks Financial Institution applicants applicants denied denied Bank of Elmwood 50 2 12 0 Bank Ond Racina 162 7 3.7 0 First Bank Southeast 70 1 11.4 Heritage Bank and Trust 240 4 7.5 25 Bank of Racine 95 1 ,.3 Security Bank 233 5 7.3 20 Totals Averages 850 20 7.8 22.5 Heritage Bank and Trust drew praise for its'involvement in the Community Home Buyers Program, an 18-month-old educational program for borrowers. "I've got to give them credit. They're doing more than a lot of banks," said Dunk. programs through the Wisconsin Housing and Economic Development Administration.

WHEDA requires borrowers to attend classes on home buying, budgeting and other topics. Firstar also recently held an educational program at the Spanish Center. 'Applications from blacks wore withdrawn. SOURCE: Home Mortgage Disclosure Act Federal reports provided data for this housing series Car, truck sales up in November DETROIT (AP) Sales of domestically built cars and trucks soared 21.6 percent in early November, automakers reported. The gains provided new evidence that a slow economic recovery may be gaining strength.

Minivans, sport utility trucks and pickups were especially hot, contributing to a 44.6 percent increase in overall light truck sales. Car sales rose at a rate of 7.9 percent. The gains, announced Friday, came against extremely weak sales a year ago, making the increases appear particularly strong. A national study of 9,358 institutions showed the home mortgage rejection rate for blacks rose to 37.6 percent from 33.6 percent in 1990. For Hispanics, the rate climbed from 21.4 percent in 1990 to 26.6 percent last year.

Meanwhile, 17.3 percent of whites were turned down, up from 14.2 percent in 1990. The report, compiled by the Federal Reserve, said the HMDA data don't take into account factors such as applicant credit, employment history and debt loads. information from the county register of deeds office. The lenders and their main local offices are: Bank of Elmwood, 2074 Lathrop Bank One Racine, 500 Wisconsin First Bank Southeast, 10005 Northwestern Heritage Bank and Trust, 4001 N. Main Bank of Racine, 441 Main and Security Bank, 468 College Ave.

Seven institutions were originally reviewed, but errors were discovered in North Shore Bank's report. Bank officials said the mistakes were the fault of the government and revised reports would be in the banks. The revisions weren't available in time for this series. Special attention was paid to lending activity in the five county census tracts with the greatest concentration of minority population and the lowest incomes. Lending to whites, blacks, Hispanics, Asians and other groups was also compared.

All five tracts are in the city of liacine. p. September. The HMDA data for each metropolitan area is also filed at a central location. The designated public file for Racine County is the Racine City Clerk's office, 730 Washington Ave.

The information includes the numbers of loans granted or denied according to sex and race of borrowers and In which U.S. Census Bureau tracts the borrowers reside. The Journal Times looked at HMDA reports from the county's six busiest home lenders, based on This investigation of home lending involved documents required by the federal Home Mortgage Disclosure Act. Each year, financial institutions which make home loans must report their home-related lending activities to a central agency. The information is compiled in late summer and released to the public.

The HMDA reports for the previous year (in this case, 1991) are available for public inspection at each institution by late.