Since the most recent housing crisis, many loan modification programs were developed to protect financially struggling households from foreclosure. Based on several unique loan-level data sets, a newly released Federal Reserve study reports novel empirical evidence on how homeowners manage their credit before and after receiving modifications. This study demonstrates that interventions designed to improve household balance sheets could have a direct and sizable impact on borrower financial outcomes.
Kat Taylor, CEO of Beneficial State Bank, makes an impassioned case for an overhaul of banking sector regulations to ensure that the industry aligns with the values of corporate social responsibility in this opinion piece in the San Francisco Business Times.
The question of how to develop a national or statewide banking strategy to assist the black community is of the utmost importance. This article in the American Banker promotes a solution that involves cooperation between federal regulators such as the Federal Reserve, Office of the Comptroller of the Currency and the FDIC to work jointly with black-owned banks to make the largest impact.