Recent News
A guide released by the American Bankers Association contains communications strategies for publicizing housing impact stories, from press releases to social media posts. Among the topics covered in the guide: building relationships with local reporters; sending press contacts complete, concise news releases; issuing media advisories to attract attention for big announcements; submitting op-eds; engaging followers on social media; issuing fact sheets and making good use of photography. One bonus tip overlooked in the guide: Submit your... Read more
The Consumer Financial Protection Bureau has launched a new inquiry into the use of mobile financial services. As part of the inquiry, the Bureau is exploring how mobile technologies are impacting unbanked and underserved consumers with limited access to traditional banking systems. A recent study by the Federal Reserve found that one-third of cell phone users and more than half of smartphone users access their bank or credit union account through their devices. As part of its investigation, the CFPB has issued a... Read more
New real-estate crowdfunding sites offer individuals the chance to invest in everything from large developments to distressed mortgages. Many of the platforms were launched in the wake of the Jumpstart Our Business Startups (JOBS) Act of 2012, which eased restrictions on fundraising by small companies as well as restrictions on advertising investment opportunities to the general public. To date, the sites have raised more than $135 million in debt and equity for real-estate deals. Real estate is proving popular among crowdfunders because it is a tangible asset that people can look at and... Read more
"Spent: Looking for Change," a new documentary released online by American Express, is a Frontline-style exposé of the high costs of living outside the traditional financial system. The documentary makes its case by following four families who are unbanked or under-banked and must use alternatives like payday lenders, pawn shops and car title lenders. American Express hopes the documentary will initiate a coalition for solving the problems of people forced to use nontraditional financial services. The documentary is also part of American Express's... Read more
The Center for Financial Services Innovation organized a scavenger hunt earlier this month intended to give several dozen participants from the financial industry, non-profits and advocacy organizations first-hand experience of alternative financial services. Each group of four participants received two checks: a payroll check for $105 and a personal check for $15. Using only the proceeds, the groups completed a series of financial transactions including executing a money transfer, buying a money order to pay a bill, obtaining a prepaid debit card and inquiring into payday loans. "The... Read more
Biloxi resident William Magee's floorboards have been buckling dangerously since becoming waterlogged during Hurricane Katrina. But Magee will soon have brand new flooring thanks to a partnership of The First, A National Banking Association, Hope Community Development Agency and The Peoples Bank. The First and Peoples are members of the Federal Home Loan Bank of Dallas, allowing them to use FHLB Dallas' Special Needs Assistance Program (SNAP) grants to assist 17 income-qualified, special-needs homeowners with repairs. "We continue to use SNAP year after year because it... Read more
A Supreme Court decision that suggests limits on Native American tribes' off-reservation authority has triggered debate over whether online payday lenders who claim tribal exemptions to state law will be affected. The ruling states that although states cannot sue tribes, they could instead pursue individual members for offering loans that violate state laws, including those that restrict payday lending. Consumer advocates hailed the decision as a new tool for stopping online lenders who claim Native exemptions. But other analysts argue the ruling is limited because it does not address the... Read more
The redevelopment of a historic 126,000 square-foot building in Detroit's Capitol Park neighborhood is expected to be completed by the end of the year with $38.5 million in financing from a group including Urban Partnership Bank. The building will be turned into new office space for the Archdiocese of Detroit, 56 loft-style apartment units and first-floor retail. The financing is part of a public-private partnership made possible by federal New Markets and historic tax credits and state historic and brownfield tax credits. Beechwood, Ohio-based Liberty Bank NA, Chase Bank... Read more
Preston Pinkett, President and CEO of City National Bank, says the bank is continuing to recover from the financial crisis. Pinkett was brought in about three years ago to plot a new course for the bank, which has been operating under a consent order from the OCC since 2009. Although City National faces challenges in loans and deposits, Pinkett noted the bank's progress in reducing problem assets. "We do see light at the end of the tunnel, and it's not another train," he said. Pinkett is planning a private offering to raise more capital for the bank before the end of the... Read more
Payday lending trade group Community Financial Services Association of America has sued U.S. banking regulators, accusing them of pressuring banks to stop serving payday lenders. The complaint alleges that under the Department of Justice's Operation Choke Point, regulators at the Federal Reserve, FDIC and OCC have engaged in "a concerted campaign" to drive payday lenders out of business by pressuring financial institutions to terminate relationships with the lenders. According to the suit, more than 80 banks have cut off relations with payday lenders due to warnings that continued... Read more
The Batten Institute at the University of Virginia's Darden School of Business profiles Southern Bancorp of Arkadelphia, Arkansas for Forbes. “Rural America is facing increasing challenges in light of the accelerating banking exodus,” says Dominik Mjartan, Senior Vice President at Southern Bancorp and member of the CDBA Board of Directors. “In 30 percent of our markets we are the only bank in town that offers responsible financial services, including transactional accounts, consumer credit and residential mortgages... Without access to a wide range of financial services... Read more
Hundreds of student-run bank branches and credit unions are opening in schools across the U.S. The school systems hope the branches will help student employees build up their resumes and make money while building financial literacy and providing families access to safe credit. Union Bank has three student-run branches in California, all located in low-income neighborhoods. The bank spends up to $200,000 to build each branch, staffs them with managers and pays student employees stipends and scholarships. Union views the branches as part of their community service and doesn't expect them to... Read more
A new video shows David Reiling, Sunrise Banks CEO and CDBA Director, accepting the Good Leader Award at Minnesota Business Magazine's Community Impact Awards. The awards are intended to recognize leaders and businesses that have a real impact on their communities. The magazine recognized Mr. Reiling for his work in community development finance, highlighting his advocacy on behalf of underserved consumers including Hmong and Somali immigrant communities. "[Leadership] is really about being a servant to those that you lead," Reiling said. "We can accomplish bigger things... Read more
Chicago-based Urban Partnership Bank has announced it will add two new employees to its Detroit lending staff and raise its annual lending goal for small business, nonprofits and real-estate investors to $10 million. The bank has already loaned millions of dollars to Detroit-based businesses since opening its Midtown office in 2012. Borrowers in the city so far have included the owners of a 138-unit apartment building who needed a renovation loan and a snack-food manufacturer that revived an abandoned factory and will be creating 50 new jobs. "We're aggressively seeking... Read more
BCB Holding Company, Inc. shareholders have approved the company's merger into The First Bancshares, Inc. BCB is the parent company of Bay Bank, which will be merged with The First, A National Banking Association. The First has now received all regulatory approvals required to complete the merger, which is expected to become effective June 30. Hoppy Cole, President and CEO of The First, commented, “We are excited and look forward to welcoming the staff, shareholders and clients of BCB Holding Company, Inc. and Bay Bank to our team. The combination of these two service... Read more
A growing number of financial start-ups are being introduced, each hoping to usurp the giants of Wall Street by offering better services and lower fees. They see banking as a prime candidate for disruption because it tends to run on bloated, dated technology. Even applying for a loan can take weeks or months, an eternity in the on-demand world of tech innovation. But tech entrepreneurs have found starting a bank to be an arduous ordeal, made more difficult by a maze of regulatory requirements and drawn-out compliance processes. It also requires a tremendous amount of money. These... Read more
The FDIC's latest Quarterly Banking Profile includes a new section focused exclusively on community banks. Previously, detecting quarterly trends in community banking with the reports had been difficult because the actions of the largest banks distorted the results across the board. Although the FDIC counts 6,234 community banks, their trends were muted because they control just 14% of industry assets. Observers say the new section will further the debate over whether smaller banks should get regulatory exemptions. The report found... Read more
As part of Operation Chokepoint, U.S. officials have opened at least 15 civil and criminal investigations against banks and other payment-processing firms, according to newly released Justice Department documents. Operation Chokepoint, a Justice Department investigation into whether payment-processers helped enable fraudulent activity, has been criticized for punishing good actors along with the bad. Republicans say the government has pressured banks to stop handling payments for merchants deemed as high risk, including gun dealers, short-term lenders and credit-repair programs. Emily... Read more
A U.S. Supreme Court decision in a Native American tribe’s casino case could stop online payday lenders that attempt to circumvent state laws by claiming affiliation with Native American tribes. The Court decided the case of Michigan v. Bay Mills Indian Community in favor of the tribe, which argued that the state could not sue the tribe directly for its off-reservation gambling activities. But the Court took the opportunity to sanction other avenues for restricting illegal off-reservation activities, including filing lawsuits against individual tribal officials and employees. Consumer... Read more
Virginia Community Capital has released an annual report covering the impact of their lending over the past year. The bank's lending was up 19% in 2013 and $61 million in new loans were approved. Also included in the report: How VCC helped construction firm J.R. Caskey Grading & Excavation withstand the recession; a renovation project which converted Lynchburg, Virginia's aging Armstrong Elementary School into new affordable housing; the modernization of a struggling medical facility in Patrick County, Virginia; and financing for Classic Creations screen printing... Read more