How Banks Meet Community Needs

first_img Previous: GSEs Launching Uniform Mortgage-Backed Securities Next: Home Equity Among Retirees  Print This Post The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / How Banks Meet Community Needs Subscribe How Banks Meet Community Needs The Community Reinvestment Act (CRA) is headed for changes by The Treasury and will relook at reinvestments of banks towards supporting community needs through initiatives such as fair mortgage lending, affordable housing development, small business lending, and similar activities. In the light of these proposed changes to the CRA, the California Reinvestment Coalition (CRC) conducted a survey of California banks and CRC member organizations to understand the impact of the CRA and its role in building a community where banks meet community needs.“Our research shows that the CRA plays an important role in ensuring that banks meet community credit needs. Banks should do more to fulfill their responsibilities to the communities they operate in,” said Paulina Gonzalez, Executive Director of the CRC. “The Treasury Department should encourage banks to work more closely with community groups, for example, to require banks to develop written CRA plans that outline win-win reinvestment strategies.”The survey found that banks that responded to CRC had lent over $27 billion towards community development in 2016 and had over $31 billion in total CRA activity. However, when it came to meeting communities’ needs in California, banks with above $50 billion in deposits statewide lagged behind their smaller peers.CRC-negotiated agreements led to more reinvestment in communities, the survey indicated, with banks that signed such agreements reinvesting twice as much in communities as banks without such agreements.The survey also included responses from communities, non-profits and other groups serving those communities. This group of respondents said that they appreciated CRA’s role in its ability to direct resources towards their work and to dialogue with banks and regulators about how banks could best meet their community’s needs. In terms of where banks could improve their outreach, this group of respondents said that they would like to see banks better fulfill their responsibilities towards communities. Radhika Ojha is an independent writer and copy-editor, and a reporter for DS News. She is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her masters degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha, also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Houston, Texas. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 28, 2018 1,673 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily The Week Ahead: Nearing the Forbearance Exit 2 days ago Tagged with: Affordable Housing Banks Communities Community Reinvestment Act CRC HOUSING Mega Banks mortgage Mortgage Lending The Treasury Share Save in Daily Dose, Featured, Government, Journal, News Affordable Housing Banks Communities Community Reinvestment Act CRC HOUSING Mega Banks mortgage Mortgage Lending The Treasury 2018-03-28 Radhika Ojha About Author: Radhika Ojha Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img

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