1 / 12

Donald Terry Vice-President Community Development Officer Northern California Region

Wells Fargo Overview: . Community Development Northern Cal. Region Social Responsibility Foundation Environmental Affairs Supplier Diversity Volunteerism Corporate Diversity. 1. What is CRA? . Adopted in 1977 In response to Red-lining practices Focus only on incomeNot race/ethnicityFede

craig
Download Presentation

Donald Terry Vice-President Community Development Officer Northern California Region

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Donald Terry Vice-President Community Development Officer Northern California Region

    2. Wells Fargo Overview: Community Development Northern Cal. Region Social Responsibility Foundation Environmental Affairs Supplier Diversity Volunteerism Corporate Diversity 1

    3. What is CRA? Adopted in 1977 In response to Red-lining practices Focus only on income Not race/ethnicity Federally Chartered banks (not state or Credit Unions) 2

    4. CRA Cont… Why do banks comply? (other than they have too…) Expansion: Mergers & New Branches Criticisms of CRA Some have argued that CRA was catalyst for subprime lending and the financial crisis. 3

    5. How are Ratings Determined? In past exams: Could Change… Primarily Focused on Urban MSAs High Population Density Full Scope MSAs (7 in California for WF) Likely less next time Day One Presentations Non-Full Scope MSAs Tier 1 Capital 4

    6. CRA Exam: Quantitative Lending (50%) Census Tracts & Individual Income Levels Metro Statistical Area HMDA, CD Lending, SBA… Community Development Investments (25%) Equity, Tax Credits… SBICs, NMTCs, LIHTCs, Micro/Alternative RLFs, EQ2s… Charitable Contributions Community Development Services (25%) Offering Financial Expertise to support LMI Skills Based Volunteerism 5

    7. CRA Exam: Qualitative Complex CRA Stories Innovative Never been attempted Exceptions made New Product Created Would not have happened Multiple components Grants, Investments, Lending, CD Services What are Banks Looking to fund? 6

    8. CRA Exam: Qualitative Examples Neighborworks – Sacramento Center Grants over $250,000 in last four years Investments EQ2s $250,000 down payment assistance RLF $750,000 REO/NSP Fund Board Service Volunteerism 1st Time Home Buyer Classes 7

    9. CRA Exam: Qualitative Examples Sierra Economic Development Corp. $250,000 EQ2 small business RLF Created partnership with Folsom and Rancho Cordova Chambers of Commerce Board Service Initial Grantor for 501c3 Business Education CBO Opening Doors Inc. $100,000 Technical Assistance Grant Created Kitchen Incubator Program Assisted in recruiting RLF Board Members Board Service 8

    10. How can UCD & Academia Help? Research beyond allocated resources No research is being done on impacts No research is being done by individual banks No research is being done by municipalities That might attract economic activity and jobs… 9

    11. How can UCD & Academia Help? No other Community Development Program on the West Coast University of New Hampshire closed LA Center Counter Criticisms of CRA 10

    12. Questions? 11

More Related