Comments on: Fixing CRA: More Emphasis on Community Development http://banktalk.org/2010/08/25/fixing-cra-more-emphasis-on-community-development/ Exploring the Finances of the Unbanked Tue, 22 May 2012 19:08:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: sdoggie http://banktalk.org/2010/08/25/fixing-cra-more-emphasis-on-community-development/comment-page-1/#comment-1852 sdoggie Fri, 03 Sep 2010 20:04:24 +0000 http://banktalk.org/?p=2609#comment-1852 Nan -- I could put you in contact with some people. E-mail me offline. Thanks, Adam Nan —

I could put you in contact with some people. E-mail me offline.

Thanks,

Adam

]]> By: Nan http://banktalk.org/2010/08/25/fixing-cra-more-emphasis-on-community-development/comment-page-1/#comment-1796 Nan Sun, 29 Aug 2010 00:51:45 +0000 http://banktalk.org/?p=2609#comment-1796 I am not sure if you have any but would you happen to have any advice for a small-medium size bank headquartered in downtown Los Angeles that only provides commercial or multi-family loans and most of them exceeding $1 million. We are also having a difficult time getting a large employee turn out in volunteering for services that are CRA qualified? Thank you. I am not sure if you have any but would you happen to have any advice for a small-medium size bank headquartered in downtown Los Angeles that only provides commercial or multi-family loans and most of them exceeding $1 million. We are also having a difficult time getting a large employee turn out in volunteering for services that are CRA qualified?

Thank you.

]]> By: Adam Rust http://banktalk.org/2010/08/25/fixing-cra-more-emphasis-on-community-development/comment-page-1/#comment-1792 Adam Rust Fri, 27 Aug 2010 15:50:26 +0000 http://banktalk.org/?p=2609#comment-1792 Nancy - that is an interesting comment. CD is a force for good in a lot of communities, provided that practitioners follow the intent of its framers. Right now, banks do get rewarded for CD lending. However, that cd lending is usually only a factor when a bank is on the margins between two possible CRA grades. If there's some question about the ultimate grade, then the CD makes a difference. The bank that was telling us about this issue is one that regularly makes an outstanding. They make a lot of good CD loans. At the same time, they realize that lending is really going to be driven by what they do for mortgages and small business loans. So, there's a disconnect between the ideal role of CD in CRA, and the existing guidelines for the CRA exams. Nancy – that is an interesting comment. CD is a force for good in a lot of communities, provided that practitioners follow the intent of its framers. Right now, banks do get rewarded for CD lending. However, that cd lending is usually only a factor when a bank is on the margins between two possible CRA grades. If there’s some question about the ultimate grade, then the CD makes a difference. The bank that was telling us about this issue is one that regularly makes an outstanding. They make a lot of good CD loans. At the same time, they realize that lending is really going to be driven by what they do for mortgages and small business loans. So, there’s a disconnect between the ideal role of CD in CRA, and the existing guidelines for the CRA exams.

]]> By: Nancy Thompson http://banktalk.org/2010/08/25/fixing-cra-more-emphasis-on-community-development/comment-page-1/#comment-1788 Nancy Thompson Thu, 26 Aug 2010 23:58:46 +0000 http://banktalk.org/?p=2609#comment-1788 It's important that banks be rewarded for loans and investments in community development corporations and other community-minded organizations, as these institutions can be helpful in disadvantaged communities. I hope CDCs and child care centers can be held to reasonable lending standards, comparable to those that would be applied to other non-profits, such as important health charities. I don't think it does community development any favor when organizations and homeowners default due to underwriting standards that were too lax. But by all means, banks should be rewarded for lending to non-profits not coming under one of the four banners listed. It's important that banks be rewarded for loans and investments in community development corporations and other community-minded organizations, as these institutions can be helpful in disadvantaged communities. I hope CDCs and child care centers can be held to reasonable lending standards, comparable to those that would be applied to other non-profits, such as important health charities. I don't think it does community development any favor when organizations and homeowners default due to underwriting standards that were too lax. But by all means, banks should be rewarded for lending to non-profits not coming under one of the four banners listed.

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