The Community Reinvestment Act (CRA) and Bank Branching Patterns
This paper examines the relationship between the Community Reinvestment Act (CRA) and bank branching patterns, measured by the risk of branch closure and the net loss of branches at the neighborhood level, in the aftermath of Great Recession. Between 2009 and 2017, there was a larger decline in the number of bank branches in lower-income neighborhoods than in more affluent ones, raising concerns about access to mainstream financial services. However, once we control for supply and demand factors that influence bank branching decisions, we find generally consistent evidence that the CRA is ...
Stuck in Subprime? Examining the Barriers to Refinancing Mortgage Debt
Despite falling interest rates and major federal policy intervention, many borrowers who could financially gain from refinancing have not done so. We investigate the rates at which, relative to prime borrowers, subprime borrowers seek and take out refinance loans, conditional on not experiencing mortgage default. We find that starting in 2009, subprime borrowers are about half as likely as prime borrowers to refinance, although they still shop for mortgage credit, indicating their interest in refinancing. The disparity in refinancing is driven in part by the tightened credit environment ...
CRA lending during the subprime meltdown
Improving evaluation and metrics in youth financial education
The Federal Reserve Bank of San Francisco, the Take Charge America Institute at the University of Arizona, and the Federal Reserve Bank of Minneapolis invited a small group of researchers and practitioners to discuss how to improve the evaluation and metrics of youth financial education programs. The meeting focused specifically on youth ? which we defined as individuals under the age of 25 ? in an effort to distinguish this effort from others that have discussed financial education research more broadly. The goal for the meeting was to help create a research agenda that would move the field ...
Moving beyond mission: effectively funding the nonprofit organization
Nonprofits are struggling to meet increased demand for services at the same time that their sources of funding have declined. The need to rethink nonprofit capital structure is greater than ever.
The Neighborhood Stabilization Program: strategically targeting public investments
Launched in 2008, the Neighborhood Stabilization Program (NSP) provides localities with federal funding ? about $7 billion to date ? to help mitigate the negative spillover effects of foreclosed and distressed properties. Since this funding is small compared to the scale of the foreclosure crisis and the level of need, the program relies on a strategy of geographic targeting, concentrating investments where the market needs public dollars to stabilize. Through case studies of Los Angeles and Cleveland, this article shows how NSP grantees are using data about the local housing market to tailor ...