News
A recent GAO report assesses the status of the Community Development Capital Initiative (CDCI). Created in 2010, CDCI is a TARP program intended to help mitigate the effects of the financial crisis on underserved communities. As of March 31, 2016, the Department of the Treasury had 76 percent of the original CDCI investment outstanding and 57 institutions remained. Many of the remaining institutions are financially healthy and likely will be able to repay the investment before dividend and interest rates increase in 2018. In some cases, however, the increase will likely force institutions to reduce community development lending. Currently, Treasury officials have no plans to alter the terms of the program, but plan to continue meeting with CDCI participants to discuss winding down the program.
Partners for the Common Good (PCG) has released a new version of its CapNexus deal matching platform. CapNexus facilitates effective business relationships between capital seekers and capital providers by acting as a clearinghouse for ideas, experts and services. The new platform features an updated interface, refined search functionality and new promotional opportunities. It is free to sign up for CapNexus and start posting opportunity and deals. For more information about CapNexus membership, to request a demo or to learn more about promotional opportunities, please contact Carla Mannings and manningsc@pcgloanfund.org
San Diego start-up Employee Loan Solutions is working with St. Paul-based Sunrise Banks to help workers who live paycheck to paycheck take out small-dollar loans. Their TrueConnect program offers short-term loans — ones that carry a high interest rate but are still cheaper than typical payday loans. Sunrise Banks was the first company to offer TrueConnect loans to its own employees. It conducted a yearlong trial starting in late 2013 at the request of federal bank regulators, who then approved the program. "Like any employer, we think we pay our employees well, so why would they need this product?" bank President Nichol Beckstrand said. "What we found is a lot of people need it."
CDFI Bank Quontic Bank in New York has begun originating "Lite Doc" loans that feature streamlined income documentation requirements. But the new product also has stringent down-payment and credit score requirements, unlike no-doc, low-doc and stated-income mortgages from the early 2000s. The mortgages take advantage of Quontic’s CDFI status, which exempts the bank from the ability to repay and qualified mortgage rules. The exemptions were put in place to allow CDFIs to continue existing loan programs directed at underserved communities that might not meet the new, more stringent standards, said Jeannine Jacokes, chief executive of CDBA. “When the rule came out, many were concerned that the rules would not allow them to do the lending they had previously done,” Jacokes said, and ultimately the CFPB “didn’t want to disrupt our models that have worked well.”
Thanks to a Special Needs Assistance Program (SNAP) grant from the Federal Home Loan Bank of Dallas and RiverHills Bank, Port Gibson, Miss. Resident Julia James was able to repair her roof and restore the foundation of her 80-year-old home. For years, James watched water drip through the ceiling of her bedroom and fill up the buckets she put out to catch the rain. James, who is on a fixed income, could not afford the critical home repairs on her own. In February 2016, she received a SNAP grant totaling $4,935. RiverHills Bank Senior Vice President David Blackledge acknowledges the important role SNAP grants play in the community. "SNAP grants help us make this community better and stronger," Mr. Blackledge said. "As a community bank, our goal is to serve this community, and we need programs like SNAP to do that."
CDBA member Beneficial State Bank seeks a social media and digital content manager to build and manage the foundation's social media profiles and presence in close collaboration with the bank’s marketing team. The content manager is expected to write smart, effective, emotionally compelling content for various media.
On Saturday June 4th more than 20 Pan American Bank employees participated in NeighborWorks Day 2016. Pan American Bank team members joined with the residents of the 900 block of N. Drake Avenue in West Humboldt Park to beautify the neighborhood through rehabbing, home repairs, painting and landscaping projects.
The event is hosted annually by Neighborhood Housing Services, an organization dedicated to its mission of encouraging homeownership, assisting with home improvements and increasing energy-efficiency as well as affordability.
“Through NeighborWorks Day, Pan American Bank employees worked side- by-side with neighborhood residents to celebrate and beautify West Humboldt Park,” said Kelly Pearson, NHS Chicago Resource Development Associate, Foundation and Corporate Relations. “This work makes a lasting physical impact to revitalize the neighborhood and builds community pride house by house, block by block.”
Pan American Bank, which has five offices around Chicagoland, values its relationships with clients, communities and colleagues and has been a partner of NHS since 2009.
CDBA member City National Bank of New Jersey has several open positions.
Impact and CRA Officer
The impact and Community Reinvestment Act (CRA) officer delivers, manages and reports on the bank’s social impact strategy and CRA compliance. This role is responsible for developing and implementing the bank’s impact strategy by managing all aspects of impact tracking and reporting to internal and external constituents including investors.
Information Security Officer
The information security officer has overall responsibility for the development, implementation and maintenance of information security. This position manages quality control and reporting and ensures compliance with policies and laws and collaborates with risk partners on information security critical priorities.
Sunrise Banks is sponsoring a Habitat for Humanity house via their #WelcomeHome project. Sunrise is the first Twin Cities company of its size ever to sponsor their own house. Working with donors and sponsors, the bank hopes to raise $75,000 for the house and recruit volunteers to physically build the house. In the past, Sunrise worked on the E-House, a project that allows entrepreneurs and businesses that are too small to sponsor houses individually to participate in a homebuilding project collectively. “Everyone at Sunrise is thrilled to finally get to work on our Habitat House. It’s even more special that we’re joined by many of our community partners to build a house in our own neighborhood,” said Sunrise Holding Company President and Interim Bank President Nichol Beckstrand.
The Nduom family, a group of Ghanaian-American investors, has invested $9 million into Illinois Service Federal Savings & Loan Association, one of the last black-owned banks in Illinois. Brothers Chiefy and Kweku Nduom said the family plans to overhaul the Bronzeville lender, trying to put the bank's close call with failure behind it. Their father, Papa Kwesi Ndoum, is now chairman of the bank. Now that Illinois Service is better capitalized, it plans to focus on its technology, loan portfolio and to reconnecting with its neighborhood. Illinois Service, which remains under regulatory scrutiny, still must confront the challenge of dealing with a portfolio in which 13.4 percent of its loans are seriously delinquent.