National Community Reinvestment Coalition & Lehman Brothers Partner to Promote Equal Access to Residential Credit & Sustain Homeownership

WASHINGTON, June 5 /PRNewswire/ -- The National Community Reinvestment Coalition, the nation's leading trade association of community organizations committed to fair lending and healthy and sustainable communities, and Lehman Brothers today announced a three year commitment by Lehman Brothers, the global investment bank, to celebrate and sustain homeownership for all Americans.

Lehman Brothers will contribute $1.25 million to support the National Community Reinvestment Coalition's direct service initiatives, including:

-- NCRC National Fair Lending Best Practice Campaign -- NCRC Consumer Rescue Fund Foreclosure Prevention & Homeownership Initiative (http://www.fairlending.com/). -- NCRC Academy Training Programs

"We are delighted to join forces with Lehman Brothers to work to expand and sustain homeownership for all Americans," stated John Taylor, President and CEO of the National Community Reinvestment Coalition. NCRC will use this support to ensure a robust financial service market that is free of discrimination, training and to provide a fresh start through our nationally celebrated Consumer Rescue Fund to homeowners who are at risk of default or foreclosure due to a change in circumstances or a problematic loan." Taylor further stated.

In connection with making the contribution, Lehman Brothers noted that it is committed to making home financing available to consumers by originating and purchasing sound residential mortgage loans to credit-worthy borrowers and by servicing such loans and engaging in collection activities related to such loans in a fair and equal manner. Lehman conducts its business in accordance with the Federal Fair Housing Act and Equal Credit Opportunity Act, and applicable state laws and prohibits differential treatment of applicants on the basis of their race or color, national origin, religion or creed, sex, marital status, familial status, handicap or disability, or age (provided the applicant has the capacity to contract), or the fact that all or part of the applicant's income is derived from a public assistance program, or has in good faith exercised any right under the Consumer Credit Protection Act. Lehman expects its brokers and correspondents to conduct their business in a similar manner.

To this end, Lehman Brothers does not prohibit origination or purchase of residential mortgage loans secured by specific types of properties or in certain geographic areas unless there is a significant underwriting, compliance or documentation issue relating to that type of property or location or if, in the judgment of Lehman Brothers, it results in an unacceptable risk to Lehman Brothers.

Lehman Brothers understands that some lenders have prohibited the origination of loans secured by particular property types, including restrictions on loans made on row house properties, properties located on Indian reservations and properties used as group or elder care homes. Lehman Brothers does not restrict the origination or purchase of such loans, provided they satisfy applicable underwriting criteria and all of the standard conditions to residential mortgage lending can be met, including a valid appraisal on the property and improvements which are affixed to the property.

The National Community Reinvestment Coalition applauds Lehman Brothers' contribution and affirmation of its policy. John Taylor, President and CEO of the National Community Reinvestment Coalition, noted: "Lehman Brothers' commitment to fair lending celebrates the dream of homeownership by ensuring that residents of row homes -- which are primarily found in inner cities of the East Coast and Midwest -- Native Americans, persons with disabilities and residents of all neighborhoods, including tribal lands enjoy equal access to credit. We trust that other lenders and securitizers with more restrictive policies will follow the lead of Lehman Brothers."

NCRC is a nonprofit founded in 1990 to ensure all Americans who can afford to borrow can get a loan. It has 640 dues-paying members in every state. For additional information about NCRC please visit http://www.ncrc.org/.

Lehman Brothers (NYSE: LEH) , an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit the firm's Website at http://www.lehman.com/.