Community Development Banking List
09-13-2010, 04:46 PM
Original message from: jsilver@ncrc.org
Late last week, NCRC released its latest report:
Safe and Sound Lending in Neighborhoods:
An Examination of the Community Reinvestment Act at work in Washington,
DC and Houston, TX
Study Found CRA Softened the Blow to Prime Home Lending in Two Large
Metro Areas
During the 2006 through 2009 time period, CRA-covered institutions (i.e.
banks) had prime home lending levels that were more stable than
non-covered CRA institutions.
Data Showed CRA Needs Expansion and Strengthening
Also, consistent with Federal Reserve research, CRA-covered institutions
were considerably less likely to issue high-cost and risky loans in
geographical areas on their CRA exams than non-CRA covered mortgage
companies (this finding applied to Houston and DC--as well as
nationally). While the study reveals the benefits of CRA, it also shows
the need to strengthen CRA. In both metro areas, CRA-covered banks
exhibited disparities in small business lending and bank branching
across race and income-level of neighborhood.
Conclusions
The report concludes that the types of disparities seen in DC and
Houston can be addressed through a stronger CRA that:
* is expanded to cover non-bank lenders,
* increases the geographical areas under CRA, and
* places greater importance on small business lending and branch
services covered under CRA.
Link to Study
For a copy of the study and press release, see the home page of NCRC's
web page (http://www.ncrc.org) ('http://www.ncrc.org)') or click:
http://www.ncrc.org/images/stories/mediaCenter_reports/ford_nhood%20anal ('http://www.ncrc.org/images/stories/mediaCenter_reports/ford_nhood%20anal')
ysis-final.pdf
NCRC
Josh Silver
Vice President of Research & Policy
National Community Reinvestment Coalition (NCRC)
727 15th Street, NW, Suite 900 | Washington, DC 20005
TEL:(202) 464-2708 | FAX:(202) 628-9800 | www.ncrc.org
Tweet/follow us: http://www.twitter.com/ncrc ('http://www.twitter.com/ncrc')
Fan us: http://bit.ly/ncrcFBpage ('http://bit.ly/ncrcFBpage')
Watch us: http://www.youtube.com/user/reinvestmentworks ('http://www.youtube.com/user/reinvestmentworks')
Flickr us: http://www.flickr.com/photos/fairlending/ ('http://www.flickr.com/photos/fairlending/')
Follow us: http://feeds.feedburner.com/NationalCommunityReinvestmentCoalition ('http://feeds.feedburner.com/NationalCommunityReinvestmentCoalition')
The information in this email, and any attachments, may contain confidential information and is intended solely
for the attention and use of the named addressee(s). It must not be disclosed to any person(s) without authorization.
If you have received this communication in error, please notify the sender immediately.
Please consider the environment before printing this email.
Late last week, NCRC released its latest report:
Safe and Sound Lending in Neighborhoods:
An Examination of the Community Reinvestment Act at work in Washington,
DC and Houston, TX
Study Found CRA Softened the Blow to Prime Home Lending in Two Large
Metro Areas
During the 2006 through 2009 time period, CRA-covered institutions (i.e.
banks) had prime home lending levels that were more stable than
non-covered CRA institutions.
Data Showed CRA Needs Expansion and Strengthening
Also, consistent with Federal Reserve research, CRA-covered institutions
were considerably less likely to issue high-cost and risky loans in
geographical areas on their CRA exams than non-CRA covered mortgage
companies (this finding applied to Houston and DC--as well as
nationally). While the study reveals the benefits of CRA, it also shows
the need to strengthen CRA. In both metro areas, CRA-covered banks
exhibited disparities in small business lending and bank branching
across race and income-level of neighborhood.
Conclusions
The report concludes that the types of disparities seen in DC and
Houston can be addressed through a stronger CRA that:
* is expanded to cover non-bank lenders,
* increases the geographical areas under CRA, and
* places greater importance on small business lending and branch
services covered under CRA.
Link to Study
For a copy of the study and press release, see the home page of NCRC's
web page (http://www.ncrc.org) ('http://www.ncrc.org)') or click:
http://www.ncrc.org/images/stories/mediaCenter_reports/ford_nhood%20anal ('http://www.ncrc.org/images/stories/mediaCenter_reports/ford_nhood%20anal')
ysis-final.pdf
NCRC
Josh Silver
Vice President of Research & Policy
National Community Reinvestment Coalition (NCRC)
727 15th Street, NW, Suite 900 | Washington, DC 20005
TEL:(202) 464-2708 | FAX:(202) 628-9800 | www.ncrc.org
Tweet/follow us: http://www.twitter.com/ncrc ('http://www.twitter.com/ncrc')
Fan us: http://bit.ly/ncrcFBpage ('http://bit.ly/ncrcFBpage')
Watch us: http://www.youtube.com/user/reinvestmentworks ('http://www.youtube.com/user/reinvestmentworks')
Flickr us: http://www.flickr.com/photos/fairlending/ ('http://www.flickr.com/photos/fairlending/')
Follow us: http://feeds.feedburner.com/NationalCommunityReinvestmentCoalition ('http://feeds.feedburner.com/NationalCommunityReinvestmentCoalition')
The information in this email, and any attachments, may contain confidential information and is intended solely
for the attention and use of the named addressee(s). It must not be disclosed to any person(s) without authorization.
If you have received this communication in error, please notify the sender immediately.
Please consider the environment before printing this email.