Homeownership at high cost : foreclosure risk and high cost loans in California
The relatively low rate of mortgage default and foreclosure in California in recent years obscures the fact that many Californians have high-cost home loans that they cannot afford. High cost loans are particularly common in low-income and minority communities, suggesting that those who can least afford it are paying the most for credit. In communities where high cost lending is more prevalent, so is the prevalence of households that are defaulting on their mortgage. Homeownership may be coming at too high a price for these households and communities.
Understanding community development needs through the CRA performance context
Community development efforts to revitalize low- and moderate-income neighborhoods should begin with an appropriate understanding of the needs and opportunities present within these communities. This sentiment is especially true of banks looking to fulfill their Community Reinvestment Act (CRA) obligations. A truly responsive and innovative CRA program should begin with the ?performance context,? or knowledge about the bank?s local markets, including the needs of the community as well as the opportunities that exist within the local network of resources and organizations. This paper attempts ...
What can we do to help? Adopting age-friendly banking to improve financial well-being for older adults
This paper explores age-friendly banking products and services that better protect and preserve the assets of an aging population. In order to examine the unique financial needs and increase the financial well-being of low-income older adults, the California Coalition for Rural Housing (CCRH) partnered with the National Community Reinvestment Coalition (NCRC) to conduct an intensive study of over 400 low-income tenants living in subsidized senior housing. CCRH and NCRC recommend that banks develop more affordable banking products for seniors on fixed-incomes, assist customers in applying for ...
Creating a marketplace: information exchange and the secondary market for community development loans
There is a lack of information exchange between community development lenders and capital investors that limits the growth of a secondary market for community development assets. This obstacle limits the ability of community development lenders to tap into the virtually endless capital resources of the secondary market, thereby limiting the valuable services these organizations provide to underserved communities.
Staying at Home: The Role of Financial Services in Promoting Aging in Community
Older adults are indicating a desire to live and grow old in their own homes and communities. Yet there are often numerous barriers and threats to aging in community, as many communities lack a comprehensive community model. With a focus on financial institutions and utilizing the concept of Age-Friendly Banking, this paper explores the economic security of older adults and ways to improve older adults? ability to live safely in their own homes and communities as long as possible. Investing in age-friendly communities can prove beneficial to both communities for all ages and financial ...
Enhancing New Markets Tax Credit pipeline flow: Maintaining a continuous deal flow in spite of funding gaps and market volatility
Kevin Leichner examines New Markets Tax Credit (NMTC) performance during the Great Recession and provides recommendations for maintaining deal flow to support the NMTC project pipeline and overcome financing gaps. Between 2002 and 2009, the Federal government allocated $26 billion worth of NMTC to support community development projects. Based on new data from the respondents to a Winter 2010 Center for Community Development Investments survey as well as three case studies, NMTC stakeholders are finding their NMTC portfolios are outperforming other investments. At the same time, however, their ...
The Rise of Underemployment: Supporting the Needs of Low-Income Workers
In 2016, the Federal Reserve Bank of San Francisco held a series of roundtable discussions across the Western states to examine drivers of the recent rise in involuntary part-time employment and the impact it has on lower-income households. This paper summarizes existing research on the topic of underemployment, discusses themes that surfaced during the locally focused meetings, and proposes ways to address the underlying causes through solutions that build on the interrelated nature of housing, jobs, transportation, and child care.
CRA collaboratives and the San Joaquin Valley
California?s San Joaquin Valley is one of the nation?s most impoverished areas. Recent developments such as the foreclosure crisis and the Matosantos decision have heightened the Valley?s needs, and there is also evidence that the Valley is beginning to garner more attention from financial institutions and federal regulators. These developments create an opportunity for community-based organizations (CBOs) and financial institutions to work together in a mutually beneficial way. This paper describes how stakeholders have successfully collaborated to increase reinvestment in other locales, ...