“OMOD has been contacted by several estate agents who have expressed over time that there is discrimination/differential treatment when it comes to how financial institutions grant mortgages”. This is how the letter that Akhenaton de Leon, general manager of the Organization against Public Discrimination (OMOD), has sent to the government begins. Furthermore, he writes: “These brokers believe that the banks have seen an equal sign between poor security/liquidity, and ethnicity/race/country background”. De Leon tells news that he has spoken to sources who have had mortgage applications rejected, but experienced that acquaintances with the same type of education and finances have not been rejected by the same bank. – So why didn’t they get a loan in the first place? he asks rhetorically. De Leon hopes the government will do more research into the banks and their mortgage practices. Photo: Ine Julia Rojahn Schwebs / news De Leon elaborates on what OMOD wants from the government: – We are looking for knowledge. We are interested in knowing whether you are treated differently if your name is Ali or Ola when you apply for a mortgage. That is why de Leon wants the government to contribute to research into this, so that you get an overview of what the situation is like in Norway. – Through research we gain knowledge. Then we don’t have to discuss this based on claims. NHH professor sees the same Ola Honningdal Grytten is a professor at the Norwegian School of Economics in Bergen (NHH) and says that he has also seen that banks in Norway discriminate based on ethnicity and religion. Several times people with a religious or minority background have approached him after having their loan application rejected. – Given the same conditions as others, it is not as easy to get a loan. Grytten believes there is reason to believe that it is not unusual for banks to treat customers differently in a way that can be perceived as discrimination. – It is difficult to say whether it is conscious or unconscious, but it is happening, says Grytten. Ola Honningdal Grytten is professor of economic history at NHH. Photo: Trond Vestre / news He explains that it is about banks being afraid of losing money. – Then it may be that they have experienced default among individuals or individual groups. It can then be easy for banks to think that certain groups have a tendency to default. The banks can thus introduce a restrictive lending policy on the basis of ethnicity, which cuts everyone across the board: – Then it can become more difficult for a number of people to take out loans because others of the same ethnicity have defaulted on loans in the past. Grytten believes that the banks are aware that they are restrictive towards certain groups for fear of default, but that they are not aware that this can help discriminate against individuals. Finans Norge supports OMOD’s proposal In an e-mail to news, Finans Norge writes that they are not aware of discrimination against mortgage customers and that the banks’ credit models are based on objective financial criteria. They are the trade organization for Norwegian banks. But they share OMOD’s desire to research this further. – The Norwegian model is largely based on everyone having the opportunity to own their own home, which in turn requires the vast majority of people to have access to a mortgage. This is therefore a very important issue, says Tom Staavi, director of information at Finans Norge. – In order to grasp it and change any unfortunate results of practice, factual knowledge must be on the table. It will also be useful for authorities in future legislative work, and particularly with regard to future mortgage regulation via the mortgage regulations, Staavi continues. Information manager Tom Staavi supports OMOD’s proposal for research in this area. Photo: Hallgeir Aunan / news Grytten also supports OMOD’s proposal that this must be researched. He believes that the banks also benefit from this and that they must therefore be willing to cooperate with researchers by providing insight. He says he would be surprised if the research shows that there is no discrimination in Norwegian banks. – There has been some research into discrimination in working life. It has then become quite clear that minorities are discriminated against in working life. I will be very surprised if you do research on bank lending and do not come to the same conclusion. May lead to reactions In a letter to OMOD, the Ministry of Labor and Inclusion has replied that they will take up their proposal with the Ministry of Finance and the Ministry of Culture and Equality. State Secretary Stian Nyhus says that the government is working on a new action plan that will come in 2023. Photo: Steinar Nedkvitne / news State Secretary Stian Nyhus says to news that it is good that OMOD has addressed this issue. – We are working on a new action plan against racism and discrimination, and are incorporating the input on the need for more knowledge about the banks’ mortgage practices into this work. Nyhus explains that banks are required to practice good business practices. If they routinely or over time break good business practice, this could lead to reactions. – It is the financial institution’s responsibility to follow these rules, and the Norwegian Financial Supervisory Authority supervises that the rules are complied with. Hi! Have you experienced discrimination in the housing market, thoughts about the case you have read or tips for other things I should check out? Feel free to send me an email!
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Believes Norwegian banks discriminate based on ethnicity – news Culture and entertainment
