Holland6 at aol.com
04-06-2000, 06:46 PM
Jennifer:
Here in Pittsburgh, CRA has had an enormous impact on our neighborhoods.
Lending by 13 banks working in partnership with the Pittsburgh Community
Reinvestment Group (PCRG) has increased by 122.4% between 1991 and 1998 and
loan dollars have increased by 218.1% during the same period. In some
neighborhoods, the increases are incredible: in the Lower Hill District (a
low- and moderate-income African American neighborhood), bank loans increased
by 466.7% and loan dollars increased by 1,646.5% between 1991 and 1998.
In many neighborhoods, loan products that PCRG helped develop with our bank
partners have directly benefited residents, such as the Ain't I A Woman
Program, Housing Recovery Program, and the Purchase-Rehab. Product. One bank
showed a 1,000% increase in lending to African Americans over just one year
as a result of the Ain't I A Woman Program. In addition, PCRG worked with
our bank partners to open new branches in low-income areas--including the
first bank branch inside a Rite Aid store in the United States--and keep
others open to serve low- and moderate-income customers.
Fannie Mae has been aggressive in working with PCRG to develop new programs
that encourage homeownership, such as the Working Mortgage, the Underwriting
Experiment, and an African American Homeownership Initiative. One financial
institution took $4 million in city bond money to help write down interest
rates on the Underwriting Experiment--that's an increase from $1.4 million
from last year. In addition, the Federal Home Loan Bank offers down-payment
assistance of up to $5,000 for homeowners. Neighborhood Housing Services of
Pittsburgh (the first NHS in the United States) provided credit counseling
that resulted in more than $10 million in mortgage loans in 1999.
Here in Pittsburgh, whole neighborhoods are springing back to life because of
innovative and committed bank participation. But problems still exist.
PCRG has noticed the rise of subprime lending in Pittsburgh. Five of the top
ten lenders in Pittsburgh are subprime lenders or institutions not covered by
CRA. In some African American neighborhoods, subprime lenders are the number
one lender, beating out industry giants PNC, Mellon, and National City.
Foreclosures have also increased by 112% between 1995 and 1999. Despite
these problems, PCRG is working with our 13 bank partners to address the
issue comprehensively and reverse the destructive predatory lending trends.
Without CRA, low- and moderate-income and African American neighborhoods in
Pittsburgh would not have had a second chance. To PCRG and the entire
Pittsburgh region, the value of CRA has been more than $4 billion in
reinvestment over the last twelve years (and that's a conservative estimate).
As far as we are concerned, this is just the beginning.
We'd be more than happy to talk with you further about reinvestment
initiatives here in Pittsburgh or take you on a tour so you can see
first-hand the amazing redevelopment of Pittsburgh's low- and moderate-income
neighborhoods.
-Dan Holland
Executive Director
Pittsburgh Community Reinvestment Group
PO Box 99367
Pittsburgh, PA 15233
412.322.6053
fax: 412.322.5767
This post transferred from the cdb-l mailing list
Here in Pittsburgh, CRA has had an enormous impact on our neighborhoods.
Lending by 13 banks working in partnership with the Pittsburgh Community
Reinvestment Group (PCRG) has increased by 122.4% between 1991 and 1998 and
loan dollars have increased by 218.1% during the same period. In some
neighborhoods, the increases are incredible: in the Lower Hill District (a
low- and moderate-income African American neighborhood), bank loans increased
by 466.7% and loan dollars increased by 1,646.5% between 1991 and 1998.
In many neighborhoods, loan products that PCRG helped develop with our bank
partners have directly benefited residents, such as the Ain't I A Woman
Program, Housing Recovery Program, and the Purchase-Rehab. Product. One bank
showed a 1,000% increase in lending to African Americans over just one year
as a result of the Ain't I A Woman Program. In addition, PCRG worked with
our bank partners to open new branches in low-income areas--including the
first bank branch inside a Rite Aid store in the United States--and keep
others open to serve low- and moderate-income customers.
Fannie Mae has been aggressive in working with PCRG to develop new programs
that encourage homeownership, such as the Working Mortgage, the Underwriting
Experiment, and an African American Homeownership Initiative. One financial
institution took $4 million in city bond money to help write down interest
rates on the Underwriting Experiment--that's an increase from $1.4 million
from last year. In addition, the Federal Home Loan Bank offers down-payment
assistance of up to $5,000 for homeowners. Neighborhood Housing Services of
Pittsburgh (the first NHS in the United States) provided credit counseling
that resulted in more than $10 million in mortgage loans in 1999.
Here in Pittsburgh, whole neighborhoods are springing back to life because of
innovative and committed bank participation. But problems still exist.
PCRG has noticed the rise of subprime lending in Pittsburgh. Five of the top
ten lenders in Pittsburgh are subprime lenders or institutions not covered by
CRA. In some African American neighborhoods, subprime lenders are the number
one lender, beating out industry giants PNC, Mellon, and National City.
Foreclosures have also increased by 112% between 1995 and 1999. Despite
these problems, PCRG is working with our 13 bank partners to address the
issue comprehensively and reverse the destructive predatory lending trends.
Without CRA, low- and moderate-income and African American neighborhoods in
Pittsburgh would not have had a second chance. To PCRG and the entire
Pittsburgh region, the value of CRA has been more than $4 billion in
reinvestment over the last twelve years (and that's a conservative estimate).
As far as we are concerned, this is just the beginning.
We'd be more than happy to talk with you further about reinvestment
initiatives here in Pittsburgh or take you on a tour so you can see
first-hand the amazing redevelopment of Pittsburgh's low- and moderate-income
neighborhoods.
-Dan Holland
Executive Director
Pittsburgh Community Reinvestment Group
PO Box 99367
Pittsburgh, PA 15233
412.322.6053
fax: 412.322.5767
This post transferred from the cdb-l mailing list