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Journal Article
Nonprime loans: a view from the local level
This article presents information on the location of subprime and Alt-A mortgages ("nonprime" loans) in the five states within the Federal Reserve Bank of Chicago?s district (Illinois, Indiana, Iowa, Michigan, and Wisconsin). The purpose is to identify the zip codes and communities most affected, or at risk of being affected, by foreclosures. We present a series of maps that show the zip codes with the highest numbers and highest concentrations of subprime and Alt-A loans, as well as the past-due and foreclosure rates in these neighborhoods. For illustration purposes in the print version ...
Journal Article
The impact of poverty on the location of financial establishments: evidence from across-county data
The location of bank branches is an important issue for consumer advocates and other groups that monitor access to financial services for low- and moderate income people. The proximity of banks and their branches to the places where people live and work is one basic element of mainstream financial access. The ability of people to choose from an array of financial products, especially those offered through the banking system, is fundamentally related to the economic well-being of a community.
Journal Article
Do hispanic neighborhoods in Chicago promote or hinder homeownership opportunities?
Hispanics are one of the fastest-growing populations in the nation, yet they have one of the lowest rates of homeownership of all racial/ethnic groups. For a large proportion of Hispanic immigrants, particularly those from Mexico and other Latin American countries, housing needs remain critical. Researchers have found that Latino immigrants living in metropolitan areas are much more likely to live in crowded and severely inadequate housing and/or to experience a severe housing cost burden. While homeownership may not be the answer for all immigrants, it is an important aspect of the social ...
Newsletter
Insurance and wealth building among lower-income households
In the summer of 2007, the Federal Reserve Bank of Chicago convened four focus groups to explore the connections between insurance, the process of wealth building and preservation, and financial access for low- and moderate-income consumers. This article examines the findings from those focus groups.
Journal Article
Savings account usage by low- and moderate-income people in the Chicago Metropolitan Area
Holding a savings vehicle with mainstream financial institutions carries several benefits including asset building opportunities, secure storage of income, a cushion against unforeseen financial events and the ability to establish or maintain a positive credit history. To better understand the demand for savings products among low- and moderate-income (LMI) people, the Federal Reserve Bank of Chicago sponsored a series of savings behavior questions in the 2001-2002 Metro Chicago Information Center?s annual household survey. Our findings offer evidence that lower-resource consumers accumulate ...
Journal Article
Resource Utilization among Black Small Business Owners in Detroit: Results from a Questionnaire
One of the most important ways for small businesses to access capital is through connections to resource networks. Business networks are the set of arrangements and information platforms that business owners use to increase exposure and sales, gain knowledge of their markets, develop financial management skills, and familiarize themselves with sources of financing. Networks can also connect people to other service providers, such as nonprofit organizations and professionals that support business owners through technical and financial training, referrals, legal services and procurement ...
Journal Article
The evolving roles of mission-focused financial intermediaries and mainstream financial institutions in community development finance
In 2005, the Federal Reserve System and the Aspen Institute?s Economic Opportunities Program launched a national conference series to explore the state of the community development finance industry. A further goal was to document lessons and practices primarily from the for-profit sector, and introduce organization, productand industry-level innovations to increase the impact of community development financial institutions (CDFIs) and other community development organizations. Prior research by Moy and others formed the basis for the series. This research showed that environmental changes ...
Journal Article
Minority-Owned Banks and Their Primary Local Market Areas
In this article, we analyze the experience and performance of MDIs in their primary local service areas in recent periods, including before, during, and after the 2008 financial crisis. We provide a review of the sector, highlighting key policies and initiatives pertaining to and affecting these institutions, and provide a brief review of previous research. We document trends in the sector, including: 1) the characteristics of the locations where MDIs tend to do business; 2) the changing landscape of MDIs in terms of openings, closings, and mergers by ethnic ownership; and 3) the performance ...
Newsletter
Developing small businesses and leveraging resources in Detroit
On October 16?17, 2012, the Federal Reserve Bank of Chicago, the Michigan Bankers Association, and the New Economy Initiative for Southeast Michigan co-sponsored a symposium that brought together business experts, business owners, policymakers, funders, and bankers to address the issues of small business credit and financing in Detroit.
CDFIs: Crucial Partners in the Public Finance Ecosystem
Community development financial institutions (CDFIs) are vital partners with state and local governments in projects aimed at assisting communities of people with low and moderate incomes (LMI communities) across the United States. Serving as intermediaries between public, philanthropic, and private sources of capital, CDFIs help deploy resources to improve economic opportunity in these communities. Government entities at all levels (federal, state, and local) work with nongovernmental actors, and CDFIs have been such partners, particularly for investments related to infrastructure as well as ...