A recent analysis by the Federal Reserve Bank of Minneapolis has found that the rate of community bank consolidation has not increased despite the rising cost of regulation. Instead, researchers found the current consolidation rates to be in line with historical trends. In June 2013, the Minneapolis Fed forecasted a decline of 325 community banks by June 2014; the actual decline was 114. That translates to an annual rate of decline of 3.5%, only slightly above the 3% annual decline which characterized the last... Read more

The National Community Investment Fund's Banking Industry Annual Report finds the CDFI banking sector leads the rest of the banking industry in both amount of lending in low income areas and number of branches in low income communities. The analysis found that CDFI Banks provide 58.7% of their home mortgage lending to distressed communities, while non-CDFIs provide 23.8%. CDFI banks locate 75% of their branches in distressed communities, compared to 50% for non-CDFIs. The report also noted the increasing health of the sector, finding that 52 of the 75 CDFI Banks included in their analysis... Read more

New York City Mayor Bill de Blasio has announced $8.2 billion in public funds for a 10-year housing plan aimed at providing affordable homes to thousands of low- to middle-income residents. The mayor intends to require developers to include affordable units in residential projects being developed in newly rezoned areas around the city. Mr. de Blasio said that with $2.9 billion in state and federal money and more than $30 billion the city expects to attract in private funds, the projected investment to... Read more

A U.S. grand jury has subpoenaed a company that the Federal Trade Commission has said is at the center of a deceptive payday lending scheme. The grand jury is looking at possible violations of statutes covering wire fraud, money laundering and racketeering. The FTC lawsuit accuses the companies and Tucker of deceptive practices, including failing to disclose to borrowers the true costs of loans and falsely threatening consumers with arrest or prosecutions if they failed to pay. In a complaint filed in April 2012, the FTC said AMG and its allegedly related companies operate online payday... Read more

As the peer-to-peer lending industry matures, the big financial firms peer-to-peer had set out to bypass have come to dominate the industry's investor pool. More than 80 percent of the loans issued on peer-to-peer marketplace Prosper went to those firms. The big players’ entry runs counter to the original notion of the sector as a populist alternative to the high stakes world of Wall Street. The original investors are now outgunned by the cash-rich, algorithm-wielding financial firms. Like high-frequency trading, peer-to-peer lending has become a game of speed. The dynamics taking shape —... Read more

In remarks to the Independent Community Bankers of America 2014 Washington Policy Summit, Fed Chairwoman Janet Yellen addressed the regulatory challenges they face. She said the Fed would "tailor" the regulator's oversight of community banks to ensure they don't face an unfair burden. Yellen also said the Fed is working to use technology make examinations of community banks less disruptive and burdensome. She also adressed the role she sees for community banks in the economy. "I believe a healthy financial... Read more

A collaboration of public and private partners in Mississippi County, Arkansas, including Southern Bancorp, has culminated in the unveiling of the county’s first Delta Bridge Project Strategic Plan. The Delta Bridge Project is a community-led initiative aimed at revitalizing the county’s social and economic sectors. “We’re excited to be part of this new phase in Mississippi County’s social and economic growth,” said Steve Jones, Senior VP of Programs for Southern Bancorp Community Partners. “Southern Bancorp has seen the impacts firsthand that the Delta Bridge Project can... Read more

The Western Independent Bankers Association has named Community Bank of the Bay winner of its annual Community Bank of the Year award. The award highlighted the San Francisco Bay Area bank’s newly redesigned Bay Area Green Fund, which attracts capital and deposits that are exclusively loaned to local environmentally sustainable projects and companies. The association also praised the bank’s sponsorship of local nonprofit Mindblown Labs, which has included three years of free office space. Mindblown teaches underserved students at two Oakland high schools app development,... Read more

Mortgage rates are likely to rise under any plan that would overhaul Fannie and Freddie. Lawmakers face a key dilemma: requiring successors to Fannie and Freddie to hold more capital could reduce the risk of future taxpayer losses, but would also raise borrowing costs. The Senate bill would require successors to maintain a 10% capital cushion. Fannie estimates that would cause rates to rise by around 0.5 and 1 percentage points from current levels, though borrowers with weaker credit could see rates rise by more than 3 percentage points. Freddie estimates rates will rise by 0.1 and 0.6... Read more