In my neighborhood in the Philadelphia suburbs, there are financial institutions everywhere, of all kinds—global conglomerates, credit unions, community banks, and much else. Combining census data from 2010 and this useful tool from the National Community Reinvestment Coalition, my ZIP code has one physical bank branch for roughly every 1,500 people.
A new study by the National Community Reinvestment Coalition (NCRC) finds the same neighborhoods that were labeled “hazardous zones” and “redlined” by the government-sponsored Home Owners Loan Corporation (HOLC) in the 1930s are the ones most persistently suffering today from inequality and lack of investment.
Most Americans who acquired the first home in their lineage would not have been successful if the rules today applied to them then. A new OpEd from NCRC’s John Taylor.
Banks are moving away from lending to low- to moderate-income borrowers and borrowers of color, the National Community Reinvestment Coalition reported in an analysis of new data on mortgage lending from the Consumer Financial Protection Bureau.
“I think their agreement is no better or no worse than many of our agreements,” said Van Tol, chief executive of the Washington-based National Community Reinvestment Coalition. This was the seventh agreement with banks he has negotiated in two years.
A top federal bank regulator has floated no longer enforcing lending rules for the poor based on the locations of a bank’s physical branches, a change likely to be opposed by NCRC and other community groups.
Listen to NCRC’s Jesse Van Tol discuss the rise of banking deserts and important CRA news in Washington, DC.
The new branch locations will increase housing accessibility for low-income neighborhoods, according to Jesse Meisenhelter, spokesperson of NCRC.
What do Baltimore, Dallas, and Miami have in common?