Hawaii keynote

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John Taylor's Keynote Presentation about Hawaii banking and community reinvestment

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  • Hawaii keynote

    1. 1. WELCOME
    2. 2. Banking and The Community WELCOME John Taylor- President & CEO - NCRCNovember 9, 2011 Hilo, Hawaii
    3. 3. Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    4. 4. What Makes a Neighborhood Poor? Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    5. 5. What Makes a Neighborhood Poor? Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    6. 6. What Makes a Neighborhood Poor? Sure, the lack of Poor people? resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    7. 7. What Makes a Neighborhood Poor? Sure, the lack of Poor people? Bad educational system? resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    8. 8. What Makes a Neighborhood Poor? Sure, the lack of Poor people? Bad educational system? resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? Is it the lack of decent and affordable housing? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    9. 9. What Makes a Neighborhood Poor? Sure, the lack of Poor people? Bad educational system? resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? Is it the lack of decent and affordable housing? If only we got more I got it, it’s No question housing is federal money or if only most people’s number the state did more? If they would just fund the lack of jobs cost and if you are paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    10. 10. What Makes a Neighborhood Poor? Sure, the lack of Poor people? Bad educational system? resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? Lack of Government Is it the lack of decent and Funding? affordable housing? If only we got more I got it, it’s No question housing is federal money or if only most people’s number the state did more? If they would just fund the lack of jobs cost and if you are paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    11. 11. What Makes a Neighborhood Poor? Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why arethey poor? Poor neighborhoods sure that contributesAnd how come so manylive in the same are the direct result of theproximity? private financial services sector determining that such neighborhoods do not fit into the bank’s If only we got more federal money or if only business plans No question housing is most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    12. 12. What Makes a Neighborhood Poor? Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    13. 13. What Makes a Neighborhood Poor? Sure, the lack of resources for adequate staffing, books, facilities, special needs,Well yes, but why are sure that contributesthey poor?And how come so manylive in the sameproximity? We ought to make a law against that If only we got more No question housing is federal money or if only most people’s number the state did more? cost and if you are If they would just fund paying too much of your my organization more Yeh, that too, but why income for that, well it we could solve this the lack of jobs, becomes hard to break problem. Really? why the lack of out of poverty. Certainly gov’t funds affordable housing, of good schools? Why is everybody here poor or near poor?
    14. 14. I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    15. 15. So let’s create a law together that we can get congress to pass that would address this problem I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    16. 16. I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    17. 17. Banks ought to have an obligation to loan to all credit worthy borrowers I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    18. 18. Banks have an obligation to loan to all credit worthy borrowers I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    19. 19. Banks have an affirmative obligation to loan to all credit worthy borrowers I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    20. 20. Banks have an affirmative obligation to address the credit needs of all credit worthy borrowers I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    21. 21. Banks have an affirmative obligation to address the credit needs of all credit worthy borrowers, consistent with safety and soundness I’m sorry but one thing nags at me. Do you think people will understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    22. 22. Banks have an affirmative obligation to address the credit needs of all credit worthy borrowers, I’m sorry but one thing nags at me. Do you think people will consistent with safety and soundness, including understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    23. 23. The Community Reinvestment Act Passed by the U.S.Congress and signed by President Carter in 1977: Banks have an affirmative obligation to address the credit needs of all credit worthy borrowers, I’m sorry but one thing nags at me. Do you think people will consistent with safety and soundness, including understand what we mean by “ credit worthy borrowers all” Do you think they’ll get that we’re talking about including low and moderate income neighborhoods low and moderate income neighborhoods? Lets be clear about this.I like that. That obligation part I like this a lot, I love to get this One thing that bothers meOught to doesn’t seem doesn’t quite cut it. We law passed about this is I don’t wantvery strong... need strengthen that part banks to make unsustainable I THINK WE NAILED IT,lets change that to to make sure they Except one thing bothers me. loans or unsafe or unsound ET’S PROPOSE IT TO“have to” understand we want them It’s not only about loans, it’s loans. CONGRESS, WHAT DO to be assertive or about ser vices, investments, Do you think we need to make YOU SAY. affirmative in this every type of credit need. that clear in this law we’re I have some news for you: obligation, so let’s add, say, So lets change the “loans” to creating? the word “affirmative”. actually meeting “credit needs” Lets
    24. 24. So How’s CRA working in Hawaii?
    25. 25. So How’s CRA working in Hawaii?Let’s Look at a Sample of Home Mortgage Lending in Honolulu
    26. 26. So How’s CRA working in Hawaii? Let’s Look at a Sample of Home Mortgage Lending in Honolulu First we’ll look at how all lenders are doing in LMI areas, then we’ll take a closer look at these three banks:Bank of Hawaii Central Pacific Bank USAA Federal Savings Bank 10750 Robert F McDermott Fwy130 Merchant Street 220 South King Street San Antonio, TX 78288-000Honolulu, Hawaii 96813 Honolulu, Hawaii 96813
    27. 27. FIRST - ALL LENDERS - Are they affirmativelymeeting the mortgage credit needs of allHonolulians (sic) are they lending in LMI areas?
    28. 28. Let’s Look at the Bank of Hawaii
    29. 29. Let’s look at Central Pacific Bank
    30. 30. And finally, USAA Federal Savings Bank
    31. 31. USAA Federal Savings Central Pacific Bank Bank of Hawaii
    32. 32. • USAA Bank offered a considerably lower percentage of loans to Asians than all lenders as a group. o USAA issued 14% of its loans to Asians, while all lenders as a group made 54% of their loans to Asians. • Asians make up 48% of the households in Honolulu, yet received only 14% of USAA’s loans. • In contrast, USAA made 55% of its loans to whites, while all lenders as a group made only 24%. • Native Hawaiians received 4% of USAA’s loans, while all lenders as a group made 9% of their loans to this group. • Low-and-Moderate Income (LMI) borrowers received just 10% of USAA’s loans, while all lenders as a group provided 23% of their loans to LMI borrowers.Bank of Hawaii: • Bank of Hawaii offered a lower percentage of loans to Native Hawaiians than all lenders as a group. o The bank issued 6% of its loans to Native Hawaiians, while all lenders, as a group, made 9% of their loans to the same group. o Native Hawaiians make up 17% of the households in Honolulu. • Bank of Hawaii can probably do a better job of providing loans to LMI households in proportion to their population. o The bank issued 22% of their loans to LMI borrowers, while all lenders as a group provided 23%. o LMI households make up 39% of the households in Honolulu. • Bank of Hawaii does a good job of making loans to Asians. o The bank issued 59% of their loans to Asians, while all lenders, as a group, made 54%.Central Pacific HomeLoans: • Central Pacific HomeLoans offered a lower percentage of loans to Native Hawaiians than all lenders as a group. o Central Pacific issued 6% of its loans to Native Hawaiians (similar to Bank of Hawaii), while all lenders, as group, made 9%. o Central Pacific did a better job serving LMI borrowers. It made 25% of its loans to LMI households, while all lenders as a group made just 23%.
    33. 33. So how can CRA change this scenario?
    34. 34. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)
    35. 35. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.
    36. 36. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.*New CFPB - new sheriff in town -will write rules on collecting data, enforcing fair lending laws, even has a special office for older Americans.
    37. 37. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.*New CFPB - new sheriff in town -will write rules on collecting data, enforcing fair lending laws, even has a special office for older Americans. *It’s all about working in Coalition - CRA coalitions work - PNC example
    38. 38. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.*New CFPB - new sheriff in town -will write rules on collecting data, enforcing fair lending laws, even has a special office for older Americans. *It’s all about working in Coalition - CRA coalitions work - PNC example *Meetings with lenders, defining credit needs, documenting those meetings
    39. 39. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.*New CFPB - new sheriff in town -will write rules on collecting data, enforcing fair lending laws, even has a special office for older Americans. *It’s all about working in Coalition - CRA coalitions work - PNC example *Meetings with lenders, defining credit needs, documenting those meetings *Celebrating when a bank does more in LMI areas, commenting on when they perform poorly - let the public know who is lending to LMI Hawaiians and who is not - a Community Lending Scorecard
    40. 40. So how can CRA change this scenario? *Banks tested/examined every two-three years on: Lending,Servicing and Investments. Bank examiners have listen to you.The CRA requires that each insured depository institutions record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institutions application for deposit facilities, including mergers and acquisitions. CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)*Data available on what banks are doing. New from Dodd-Frank is small business data - NCRC does this for you.*New CFPB - new sheriff in town -will write rules on collecting data, enforcing fair lending laws, even has a special office for older Americans. *It’s all about working in Coalition - CRA coalitions work - PNC example *Meetings with lenders, defining credit needs, documenting those meetings *Celebrating when a bank does more in LMI areas, commenting on when they perform poorly - let the public know who is lending to LMI Hawaiians and who is not - a Community Lending Scorecard *Create a linked deposit program - city ordinance
    41. 41. How Cities Can PursueResponsible Banking:Model City Ordinance to Create Community ReinvestmentRequirements for Depository InstitutionsOctober 2010MODEL CITY ORDINANCE WHEREAS, The practices and products (such as loan and investment products) of financial institutions have a measurable impact on the City’s tax base, quality of life and overall economic viability and competitiveness; and WHEREAS, Economic viability and competitiveness comes from strengthening, and providing opportunities within all areas of the City; WHEREAS, financial institutions receive deposits and other forms of investments and accounts from City residents; BE IT RESOLVED, therefore, that in return for the privilege of safeguarding and investing the community’s wealth and doing business with the City, the financial institutions have a continuing and affirmative obligation to serve the credit and other financial needs of all communities, including and especially minority and low- and moderate-income communities, consistent with safety and soundness. The City shall assess financial institutions’ performance in meeting community needs and use this assessment as a factor in its decision to place municipal deposits in financial institutions and conduct other business with financial institutions.
    42. 42. Get involved with The National Community Reinvestment Join NCRC www.ncrc.org Thank you

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