Nancy Ryan, executive director of the Cambridge Women's Commission and an Area 4 resident, says she believes that low-income buyers are paying the price for risky loans banks made in the 1980s.

"With all of the risky loans [banks] have put out, the people who are paying the price are low income folks who are scrutinized more closely and who have to pay bigger down payments," Ryan says.

Ryan, who lives on a street on which nearly all the home are owner-occupied, said she hopes to see greater opportunity for investment in the future.

While large, mainstream bank may feel the pressure to maximize profits more than the pressure to stabilize neighborhoods, another kind of financial institution has found a marketing niche in servicing specific populations that might otherwise be ignored.

Borrowers who prefer not to finance their home purchase in the traditional manner may choose to mortgage their home through a credit union.

The Cambridge Portuguese Credit Union has been handling the banking needs of the city's Portuguese community for 65 years.

Alfred W. Ricci, the credit union's president, says borrowers may choose to become members of the credit union because all of his staff speak Portuguese, or because they feel they will not be discriminated against.

"In a perfect world, Portuguese Blacks, and Haitians would be treated just like anybody else," Ricci said. "Unfortunately that doesn't always happen."

In an imperfect world, banks must balance their shareholders' interest in making profits with the civic responsibility--and federal requirement of equitable lending. That's a difficult task for the moment, the short-term profit interests appear to have the upper hand.