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DUKAKIS HITS AT BOSTON BANKS' LENDING BIAS

Gov. Michael Dukakis (D) outlined a plan this week to fight discrimination in mortgage lending, including stricter enforcement. The plan followed a report by the Federal Reserve Bank of Boston last month that found Boston's black neighborhoods received 24 percent fewer home loans than white neighborhoods.

``The Federal Reserve Bank study should be the concern of every fair-minded citizen of Massachusetts,'' Governor Dukakis said.

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The first steps announced by Dukakis will target state-chartered banks in Boston and other urban areas for tougher evaluation of compliance with federal and state statutes.

The governor's proposals would mandate participation by all lenders in a review-board process that resolves disputes over the denial of mortgages. It would add people from outside the industry to each board. Currently, participation by lenders is voluntary.