Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
A new online payment platform from City National Bank of New Jersey aims to disrupt the foreign currency payment space. Using the platform, businesses will be able to easily pay foreign counterparties in virtually any currency with transparent and low-cost fees. The platform will also be made available as a white-label solution for other community banks. The service is being developed under a partnership with international financial services company Clearshift Group and specialized small business investment company East Coast Capital Holdings. "This venture is an example of how the combination of Fintech companies and banks could ease payment processes, reduce fraud, save users money, promote financial planning, and ultimately move the giant financial industry forward," said Preston D. Pinkett III, Chairman and CEO of City National Bank.
The New York State CDFI Coalition, a group that includes New York City-based Spring Bank, is renewing its push for a state-level version of the CDFI Fund. Their advocacy started in the mid-2000’s and succeeded in establishing the New York State CDFI Fund. But the agency has never received any actual funding, the victim of a perfect storm that included Governor Eliot Spitzer’s resignation and the 2009 financial crisis. A state fund would not only expand award coverage for the state’s CDFIs -- it would also provide match funding for federal CDFI Fund award applications. The Coalition is now advocating for an appropriation of $15 million. “It’s been a long process. I think we’re getting close to the point where there’s support within the legislature and the governor’s office,” says Melanie Stern, director of consumer lending at Spring Bank.
The Federal Reserve Bank of San Francisco has terminated its order to cease and desist on L.A.-based Broadway Financial Corporation, parent company of Broadway Federal Bank, F.S.B. Broadway has operated under the order since 2010. The OCC had lifted its own consent order from the bank in November 2015. CEO Wayne Bradshaw commented, “This decision by the FRB, along with the OCC’s decision in November, officially [recognizes] that Broadway has re-established its position as a safe and sound financial institution. In addition, these decisions tacitly acknowledge the success that our team has achieved in generating profits, eliminating problem assets, re-building a quality loan portfolio and strengthening our capital structure.”
The President has released his FY 2017 budget, proposing a total of $245.9 MM in CDFI Fund appropriations. That would represent a $12 million increase over the fund’s FY 2016 appropriations. Significantly, the budget proposes $19 million in funding for the Bank Enterprise Award (BEA) Program, marking the first time in many years the president’s budget has not proposed eliminating the program. The budget also includes a new program aimed at promoting responsible small dollar loan products. The new program would make $10 million available as grants for loan loss reserve funds and as technical assistance for small dollar loan programs.
Sunrise Banks has received the Best Cause Advocacy/Awareness award in the 2015 PR Daily Corporate Social Responsibility awards. The award is in recognition of a brand journalism campaign that Sunrise created to promote the work of local nonprofit, Newgate School. Newgate is a nonprofit, tuition-free automotive technical school located in the Twin Cities. They offer autobody and auto mechanics training for unemployed or under-employed adults. Sunrise worked with Twelve-Plus media to create a short video highlighting Newgate’s mission and history that was launched alongside a robust social media contest and campaign to promote Newgate School and their work.
David Reiling, social entrepreneur and CEO of St. Paul based Sunrise Banks was recently named as one of the Trust Across America-Trust Around the World Top Thought Leaders for 2016. The awards program celebrates professionals who are transforming the way organizations do business. This is Reiling’s third consecutive year being named to the list. “[This year's honorees] inspire organizations to look more closely at their higher purpose...to create greater value for, and trust from all of their stakeholders, and understand trust is a ‘hard currency’ with real returns,” said Trust Across America-Trust Around the World CEO, Barbara Kimmel.
Boston, Mass.-based OneUnited Bank and the African American Film Critics Association are hosting their second annual “Money On My Mind: The Film & TV Industry” event. The event is part of an effort to reach out to Hollywood’s’ black community and encourage long-term wealth building by examining the multitude of opportunities behind the camera and behind the scenes in the entertainment industry. The event will feature discussions by some of Hollywood’s most powerful black TV and Film players. “OneUnited Bank is honored to partner with AAFCA on this annual event to expand awareness of opportunities to make money in the entertainment industry,” states Teri Williams, President & COO. “We are always looking for creative ways to promote financial literacy.”
Seaway Bank & Trust has filed a lawsuit against Urban Partnership Bank alleging wrongdoing over a mortgage portfolio of more than 1,500 home mortgages with a face value of $154 million. The dispute started late last year when Urban Partnership sold more than 1,500 mortgages originated by its predecessor, ShoreBank, to Seaway. The deal unraveled and Seaway now claims Urban Partnership won’t return a security deposit of several million dollars. At issue was how quickly Urban Partnership wanted Seaway to assume the loans. Seaway said that its bid specified a 120-day period before it could assume the mortgages. But Seaway was informed it needed to take over the loans in 15 days. According to the complaint, the marketing firm in charge of the deal then transferred the security deposit to Urban Partnership without telling Seaway.
The CDFI Fund is tentatively planning to release the Notice of Funds Availability (NOFA) and applications for the FY 2016 CDFI Program FA and TA and Native American CDFI Assistance Program (NACA Program) in mid- to late February 2016. The CDFI Fund also announced it will conduct application workshops across the country to help applicants better understand the programs and the application process. Workshops are tentatively scheduled for Feb. 24, 2016 in Minneapolis, Minn. at the Federal Reserve Bank of Minneapolis; March 8, 2016 in Washington, D.C. at the CDFI Fund’s headquarters; and March 21, 2016 in Atlanta, Ga. at the Federal Reserve Bank of Atlanta.
Beneficial State Bank has launched a new impact website to spread the word about the positive effect they’re having on their communities. The bank unveiled the new site at the same time as it appointed its first Chief Impact Officer, Erin Kilmer Neel, who will lead the bank’s impact department. The impact department fosters a beneficial ecosystem that includes collaborating with other banks, engaging with community members, informing and assisting businesses, and cultivating a new sustainable economy. “The launch of the Impact Website collects in one location reporting on our lending, the outcomes of that lending, our corporate practices, and our commitments toward a New Economy,” said Kat Taylor, Beneficial State Bank Co-CEO and Co-founder. “We are honored to help bank customers co-create that New Economy as best we can.”