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Given Square 1's CRA Results, Regulators Should Hold Up Its Merger with PacWest

Adam Rust's picture

Posted June 1, 2015

Square 1 Bank holds more deposits in Raleigh-Durham than any other bank. Given that, they should be held to a high standard for their Community Reinvestment Act obligation. From a purely quantitative perspective, they have done what their regulators asked. But even a simple review of that track record shows that their impact has been minimal. Until PacWest shows that it can do better, the FDIC should block this merger.

Upper Income African-Americans Moving into FHA Loans

Adam Rust's picture

Posted December 17, 2010

More home buyers are seeking mortgage loans backed by FHA guarantees.

I have been looking at lending patterns in my own community - Durham, North Carolina - and the 2009 numbers paint an interesting picture that suggests a dual marketplace. One group - white and Asian borrowers - continues to eschew the FHA program in favor of conventional loans. Another, made up almost entirely of African-American borrowers, is turning to the FHA program. What is more interesting is the extent to which the sudden switch is unaffected by borrower income. Even well-off African-Americans are flocking to FHA.

I ran a chi-square that sorted borrowers by their race or ethnicity and by their incomes. Incomes were separated

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