Recent News
The Office of the Comptroller of the Currency (OCC) is soliciting comments on proposed rules to rescind the Community Reinvestment Act (CRA) rule issued in 2020 and replace it with rules adopted jointly by the Federal banking agencies in 1995, as amended. This action facilitates the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions. The proposed rules would apply to all national banks and all federal and state savings associations. Comments must be received on or before October 29, 2021.
Rising two stories, the gray steel framework of BNA Bank's downtown Tupelo location is in its early stages. When complete, the 18,000-square-foot building will be home to the New Albany-based bank as well as a couple of other tenants. Bank officials, joined by city of Tupelo and Lee County officials and others, had a ceremonial groundbreaking Tuesday at the site on West Main Street next to the railroad tracks. "We've done well in those years," CEO Bo Collins said. "Northeast Mississippi is our golden spot on earth. We feel like it's a diamond in the rough." With some $678 million in assets... Read more
The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced $5 billion in New Markets Tax Credits today that will spur investment and economic growth in low-income urban and rural communities nationwide. A total of 100 Community Development Entities (CDEs) were awarded tax credit allocations, made through the calendar year (CY) 2020 round of the New Markets Tax Credit Program. The 7 CDBA member banks receiving awards were Central Bank of Kansas City, The Harbor Bank of Maryland, Peoples Bank, Legacy Bank & Trust, Sunrise Banks, Southern... Read more
The Consumer Financial Protection Bureau (CFPB) proposed a new rule designed to help small businesses gain access to the credit they need and deserve by increasing transparency in the lending marketplace. This rule, mandated by Congress in the Dodd-Frank Act, would, if finalized, require lenders to disclose information about their lending to small businesses, allowing community organizations, researchers, lenders, and others to better support small business and community development needs. Under the proposal, lenders would be required to report the amount and type of small business credit... Read more
Detroit-based First Independence Bank, one of only 18 Black-owned full-service banks in the country, has filed an application to open a branch in the Twin Cities. The first branch is set to open in November. Five banks in the Twin Cities—Bank of America, Bremer Bank, Huntington Bank, U.S. Bank, and Wells Fargo—are each supporting First Independence Bank's arrival with capital, research, marketing, and other services to assure its start-up and long-term success. Gov. Tim Walz welcomed the news. "In Minnesota, we know that a strong economy is an equitable economy, and the opening of First... Read more
FUND Community Institute is conducting a research project on community development strategies. We welcome all CDFIs to participate in our survey at the link provided. Please feel free to reach out with any questions and thanks in advance for your participation.
First Eagle Bank delivered a new dream bedroom to Harry, a 13-year-old Bartlett teen battling cancer. Harry was diagnosed with leukemia in February 2021 and has spent much time in and out of the hospital. The Hanover Park based bank partnered with Illinois based charity Special Spaces Chicagoland to create Harry's dream bedroom in a single day. "Children battling cancer spend endless hours in their room, it was an honor to be involved in sponsoring and creating a safe space for Harry during such a challenging time," said Gene Khalimsky, Vice President at First Eagle Bank. Khalimsky is well... Read more
Six Black banks — including four of the nation's largest — have joined a new digital platform by Citi. The action could help the banks increase lending to African American entrepreneurs. According to a news release, the banks are part of a consortium linking with Bridge built by Citi, a bank-led, digital meeting place that connects businesses seeking loans up to $10 million. The "first-of-its-kind platform is aimed to expand access to capital and financial services to Black small business owners. The platform launched by Citi matches local and regional banks with local small businesses... Read more
Black folks are turning to cryptocurrencies as a new path to wealth at a higher percentage than the general population, according to USA Today. An estimated 23 percent of Black Americans own cryptocurrencies, like bitcoin, compared to 13 percent of the general population, the newspaper reported, based on surveys by Harris Poll. Black people are not alone. The survey found that marginalized groups disproportionately own crypto. About 25 percent of the LGBTQ community and 17 percent of Hispanics are in the crypto market, compared to 11 percent of white Americans. What many in those groups... Read more
Residents and businesses in Choctaw County will soon have a new choice for their money matters. On Monday, August 16, the Bank of Kilmichael held a groundbreaking ceremony at the site of its future home in Ackerman. The bank will be a 2,400 square-foot building which will include two oversized drive-up lanes and an ATM. The bank of Kilmichael is a full-service facility specializing in loans, along with business and personal accounts. Ackerman Mayor Dale Reid said the new bank will offer a lot for local residents. "To have the Bank of Kilmichael come to Ackerman and build a building to... Read more
There was a time not long ago that community development financial institutions and minority-owned banks struggled to find the capital needed to increase financial inclusion, catalyze growth and reduce inequality in low- to moderate-income communities across the United States. Today, though, the sector has the opportunity to scale up by increasing total assets by a factor of 10 — and commensurately increase the impact in LMI markets. Everything changed last year when the Black Lives Matter movement helped local and national leaders recognize the sector as an important agent of change in... Read more
23 partner organizations, including CDBA and CDBA member Virginia Community Capital, have lauched the Virginia CDFI Coalition. Earlier this year, the Virginia General Assembly passed a $10 million budget amendment that effectively created and funded the Virginia CDFI Fund, which is to be administered by the Virginia Department of Housing and Community Development (DHCD). The purpose of this fund is to support Virginia-based CDFIs and build their capacity to support communities and businesses across the state. In response to this opportunity, a majority of Virginia-based CDFIs has agreed to... Read more
The Board's Division of Consumer and Community Affairs (DCCA) is seeking to fill three positions that will each play a senior role in the development and implementation of Community Reinvestment Act (CRA) policy. Depending on the selected candidate's experience and qualifications, the Board will select candidates from the following job titles and grade levels: Supervisory Policy Analyst (FR 26); Sr. Supervisory Policy Analyst (FR 27); and Lead Supervisory Policy Analyst (FR 28). The positions work under the general supervision of the CRA Manager, exercising leadership and initiative in... Read more
Owning a home has long been one of the most effective ways to build wealth. But for many lower-income renters – especially for Black families and other people of color – the leap from renting to owning can seem nearly impossible. For many, one of the biggest obstacles to qualifying for a mortgage is insufficient credit history. Today, Fannie Mae is taking an important step forward to change that. We are making a groundbreaking update to our automated mortgage underwriting system, Desktop Underwriter®, to allow lenders to consider a history of recurring rent payments in assessing... Read more
The expanded child tax credit, signed into law by President Biden in March, is an unexpected windfall to many families. For banks, it represents both a short-run test and a longer-term opportunity. The test is that many unbanked households are having trouble accessing their funds in a timely manner, and the Biden administration is asking banks to be part of the solution. On the flip side, parents who do have bank accounts are likely to want advice on what to do with the sudden influx of cash, offering banks a unique customer engagement opportunity. "I think that there's a substantial... Read more
Virginia Community Capital Bank in Richmond prizes the clean energy lending program it launched five years ago. But as a small community development financial institution, it lacked the resources to find socially minded depositors at the scale it wanted to fund its solar loans. Ando, a challenger bank that focuses on sustainability, is finding them instead. The San Diego fintech has the trappings of a typical neobank: no monthly fees, early direct deposit and interest rates that grow in exchange for referrals. But its mission is to fund clean energy, sustainable agriculture and other green... Read more
Quontic Bank, a community development financial institution in New York, has made a name for itself as an innovator. It was the first U.S. bank to have a bitcoin rewards card; it pays 1.5% back in bitcoin rewards for every debit card transaction. The bank has other products in the works, including a ring that can make debit card purchases. The $1.4 billion-asset Quontic also has been expanding its mortgage business. It is using a new method of underwriting that allows people in good credit standing but with low incomes to afford a home; 70% of its home loans are made to such customers. In... Read more
As the COVID-19 pandemic began to rattle businesses nationwide and the federal government launched its Paycheck Protection Program, businesses in Maryland and beyond struggled to process their applications. The PPP program was launched in April 2020, but some businesses said their applications were delayed — in part because they could not find banks that accepted applications, and many banks weren't set up to do so. John Lewis, president and chief operating officer of the Harbor Bank of Maryland, said his bank not only accepted PPP applications, but his employees went out of their way to... Read more
Community Bank of the Bay (CBB), a leading San Francisco Bay area commercial bank, has partnered with Numerated, the fast-growing fintech making business banking easy for financial institutions and their clients. With a reputation for being an innovative community bank, CBB will use Numerated's digital lending platform to meet business clients' growing demand for digital channels. CBB will leverage... Read more
No one can reasonably deny that when the overall economy gets a cold, low- and moderate-income individuals and neighborhoods get the flu, largely through no imprudence of their own. History proves that lower-income families, particularly those comprising people of color, get fired first and rehired last. As a result, no matter how hard they work to save, they're almost always left a step behind. The Great Recession was a clear example: While a range of big banking institutions were given taxpayer bailouts, more modest communities were left with a Sisyphean boulder. As we emerge from the... Read more