Recent News
"Lawmakers and representatives of the community development financial institutions, or CDFIs, bemoaned potential obstacles and cuts to government funding of those institutions during a Senate Banking Committee hearing.
A Biden administration proposal to overhaul the certification process for CDFIs — as well as potential cuts to the CDFI fund proposed by some Republican lawmakers — came under fire at a Senate Banking subcommittee hearing on Tuesday. Lawmakers on both sides of the aisle were broadly supportive of the public mission of CDFIs, and pushed back on any incursion into their... Read more
On October 17, the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Housing, Transportation, and Community Development met to conduct a hearing entitled, 'How Community Development Financial Institutions Promote Housing and Economic Opportunity.'
The witnesses included representatives of CDFIs focused on serving rural and native communities. CDBA member United Bank (AL) was called out by Senator Britt (AL) as an example of CDFI excellence. Senator Britt begins speaking at 01:21:03 in the linked video above.
"Just one remarkably memorable event in Darrin Williams' lifetime, in this case flying into his hometown on Air Force One with the president of the United States, Williams' wife and 6-month-old child on board, for a national celebration to recognize the Little Rock Nine and the 40th anniversary of the desegregation of Central High in Little Rock, would probably be enough for most folks. Williams has a closet full of such memorable encounters not unlike that leading up to his current role as chief executive officer of Little Rock's Southern Bancorp, a $2.5 billion institution with plans to... Read more
"Though banks have recently been churning out their highest profits in more than a decade, there's trouble brewing beneath the rosy performance metrics, according to the consulting firm McKinsey.
The threat is largely tied to the ongoing shift of balance-sheet activities and transactions away from traditional banks to nonbank institutions, McKinsey warns in its 2023 annual review of global banking. That migration has gained such scale that banking is now at 'a tipping point' that could 'fundamentally alter the nature' of the industry, the McKinsey report states."
"Community development financial institutions (CDFIs) are vital investors in cities across America, but could they have a greater impact if they better pulled in dollars from public finance sources?
As long-standing lenders with a mission, CDFIs specialize in providing loans to individuals, organizations, and businesses in under-resourced or disadvantaged rural and urban communities often underserved by mainstream banks. They also provide other forms of fair, responsible financing that further economic potential. CDFIs can also function as trusted intermediaries that invest in a... Read more
"CFPB recently analyzed the non-sufficient fund (NSF) fee practices of a number of banks and credit unions. NSF fees are charges that some financial institutions impose when they decline to make a payment from a consumer's account, like a check or electronic authorization, after determining the account lacks sufficient funds. NSF fees are distinct from overdraft fees, which financial institutions charge when they pay, rather than decline, a payment when the account lacks sufficient funds."
"The changing economic environment is opening a window of opportunity for banks and credit unions to put their artificial intelligence models for loan underwriting through a credit cycle.
The digital banking evolution in the past decade has significantly enriched data around consumer profiles and behaviors. It has incubated a group of financial technology vendors to develop AI underwriting models for banks and credit unions. Since most of them were established in a benign environment, early adopters are now looking to validate their AI models in the current dynamics with the... Read more
"To increase the public's awareness of deposit insurance and how it can protect people's money in the event of a bank's failure, the FDIC developed a national consumer campaign, 'Know Your Risk. Protect Your Money.' The campaign reaches people who may have lower confidence in the U.S. banking system or who are unbanked, as well as those who use mobile payment systems, alternative banking services and financial products that may appear to be FDIC-insured but are not."
"Members attending the American Bankers Association's annual convention in Nashville, Tenn., have elected new ABA officers and directors to serve on ABA's board for the 2023-2024 association year. The new officers are:
- CHAIR: Julieann M. Thurlow, president and CEO, Reading Cooperative Bank, Reading, Mass.;
- CHAIR-ELECT: John C. Asbury, chief executive officer, Atlantic Union Bancshares Corp., Richmond, Va.;
- VICE CHAIR: Kenneth Kelly, chairman and CEO, First Independence Bank, Detroit; and
- TREASURER: Carissa Rodeheaver, chairman, president and CEO,... Read more
"Today, the Consumer Financial Protection Bureau (CFPB) announced the appointment of new members to the Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council."
CDBA would like to recognize the achievement of the following member:
- Victor M. Ramirez, SVP, CRA and Fair & Responsible Banking, Beneficial State Bank (Oakland, CA) was appointed to the CFPB Community Bank Advisory Council
Congratulations, Victor!
Federal Reserve Governor Bowman:
"Today I will begin by discussing some of the research around community banks and the role they play in the U.S. banking system. I will then discuss how this research can inform policy, including by helping us be more sensitive to the unintended consequences of reform, and discuss how this perspective can be applied to the evaluation of bank mergers and acquisitions. Finally, I will mention a few additional areas where I think research could be valuable as an input to the rulemaking process."
A brief history of the early days of the New Markets Tax Credit:
"In early 2003, Bob Rapoza got a call from the Treasury Department.
The first round of new markets tax credit (NMTC) allocations–$2.5 billion worth–would soon be announced by the Community Development Financial Institutions (CDFI) Fund and Rapoza was head of the fledgling New Markets Tax Credit Coalition (NMTCC)."
"The number of pending home sales fell more than 7% between July and August, according to the National Association of Realtors. That drop was bigger than analysts had expected and the NAR says it was largely due to rising mortgage rates.
'While plenty of people want mortgages right now, rising rates restrict what they can afford,' said Dominik Mjartan, CEO of Optus Bank in South Carolina."
"Today, the Consumer Financial Protection Bureau (CFPB) released its annual report on residential mortgage lending activity and trends. In 2022, mortgage applications and originations declined markedly from the prior year, while rates, fees, discount points, and other costs increased. Overall affordability declined significantly, with borrowers spending more of their income on mortgage payments and lenders more often denying applications for insufficient income."
"WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced it is beginning a rulemaking process to remove medical bills from Americans' credit reports. The CFPB outlined proposals under consideration that would help families financially recover from medical crises, stop debt collectors from coercing people into paying bills they may not even owe, and ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes."
"On September 19th, the Consumer Financial Protection Bureau (CFPB) issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models. The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers. This means that creditors cannot simply use CFPB sample adverse action forms and checklists if they do not reflect the actual reason for the denial of credit or a change of credit conditions. This requirement is especially important with the growth of advanced... Read more
"In January 2022, Kenya Davenport accepted a position with Southern Bancorp to become its new chief of staff and work alongside a CEO, Darrin Williams, who had become a prominent mentor in her life, and create a platform for equality within the financial landscape.
'We've just been vigorously working every day to put our stamp on finally resolving the racial wealth gap,' Davenport said. 'That's our task every day, and we are fighting to make it a more level playing field for everyone in financial services and the financial industry.'"
"Thanks to an SBA loan through CDBA member Ponce Bank, Daniel Garcia, owner of the Caribbean food service company Salsa Caterers and Special Events, acquired an industrial building in the Bronx to expand his business after growing during the pandemic. Part of what made this acquisition successful was the shared sense of community between Ponce Bank and Salsa Caterers. 'I've met the president of the bank,' Garcia says. 'I can call a person who cares, who's from the community, who knew my history, knew my character, and advocated for us. You can't buy that.'"
"Congress is facing a perilous return from August recess with just weeks to pass a stopgap spending bill and serious differences between the Senate and House on overall fiscal 2024 spending levels and priorities. The fiscal year wraps up on Sept. 30, and Congress traditionally passes a short-term continuing resolution so it has more time to work on a bipartisan, bicameral agreement on the 12 annual spending bills.
The Senate has been writing its fiscal 2024 appropriations bills to the levels laid out in the debt limit law (PL 118-5) negotiated by President Joe Biden and Speaker... Read more
"Even though more students feel priced out of college entirely, there are efforts to improve access to higher education that seem to be working. In 2011, San Francisco made headlines when it became the first city in the nation to kick off a college savings account with $50 for every child entering kindergarten in the public school system. Now those students are about to enter college."