News
Beneficial State Foundation has launched its Underwriting for Racial Justice Lender Pilot Program, a two-year endeavor composed of 20 diverse lenders focused on dismantling racially-inequitable underwriting practices in the financial industry and increasing capital access and wealth for people of color. CDBA member Texas National Bank is also participating. The pilot program aims to create new lending criteria for lower-income U.S. borrowers who have historically faced higher barriers to obtaining financing.
A key strategic partner is Stratyfy, a bias-mitigation firm that has twice been highlighted by CDBA's Product Development Committee and was a guest presenter at the 2022 Peer Forum. Stratyfy and Beneficial State Foundation recently announced a partnership to leverage AI to promote equitable lending practices.
Beneficial State Foundation has launched its Underwriting for Racial Justice Lender Pilot Program, a two-year endeavor composed of 20 diverse lenders focused on dismantling racially-inequitable underwriting practices in the financial industry and increasing capital access and wealth for people of color. CDBA member Texas National Bank is also participating. The pilot program aims to create new lending criteria for lower-income U.S. borrowers who have historically faced higher barriers to obtaining financing.
A ket strategic partner is Stratyfy, a bias-mitigation firm that has twice been highlighted by CDBA's Product Development Committee and was a guest presenter at the 2022 Peer Forum. Stratyfy and Beneficial State Foundation recently announced a partnership to leverage AI to promote equitable lending practices.
Optus Bank and Carver State Bank are quoted in a Marketplace article discussing banks' hesitation around Commercial Real Estate Loans despite office building sitting empty.
The CFPB released its Fair Lending Annual Report to Congress , describing their fair lending activities in enforcement and supervision; guidance and rulemaking; interagency coordination; and outreach and education for calendar year 2022.
Per Politico, DOJ's review of bank mergers will refocus its enforcement of American legal precedence by limiting big bank mergers to maintain as much competition as possible. The goal is to revive the DOJ's practice of issuing competitive factors reports. Going forward, the DOJ will look, for example, "to ensure that customers have the ability to choose among different types of lenders, such as retail banks, small business banks, and large- and mid-size business banks in any transaction."
Lillous Ann Shoemaker, president and general counsel of Magnolia State Bank, was recently appointed to The Federal Deposit Insurance Corporation Advisory Committee on Community Banking, which was established in 2009. Shoemaker is the first Mississippian to serve on the Advisory Committee.
The NFL announced $78 million in borrowing from 16 MDI's and CDFI's, 10 of which are CDBA members. The NFL is establishing relationships with diverse financial institutions to provide new economic opportunities typically only available to larger financial institutions and to increase the diversity of its banking partners. Additionally, the new business opportunities will help fund growth, increase investment back into the communities they serve and create broader visibility for the institutions themselves.
Several large banks and other companies and foundations have secured $1 billion of committed deposits for financial institutions that focus on underserved communities, but organizers say those efforts are still in their early stages.
CDBA Advocates for Environmental Justice in Marginalized Communities
The African American Alliance of CDFI CEOs (The Alliance) is excited to announce that Community Development Bankers Association (CDBA) has joined the Community Builders of Color Coalition (The Coalition). Together with CDBA, The Alliance and other Coalition members will fight for equity in the EPA’s administration of the Greenhouse Gas Reduction Fund (GGRF), advocating that at least 40% of awarded capital benefit disadvantaged communities, mainly minority and low-income populations that have been disproportionately impacted by the effects of climate change.
After an introduction through CDBA, Optus Bank partners with CNote's Impact Cash Program in order to increase deposit levels and elevate its visibility. "Impact Cash was exactly what Optus was looking for," said Dominik. "Finding a new source of deposits that came from impact-minded corporations at low cost balanced the equity investments we received and allowed us to turn out more investments into the community to create impact."