A new approach to bank ratings would generate billions more for neighborhoods reeling from the pandemic
This white paper describes NCRC’s suggested rating system and discusses our forecasts of increased dollars for LMI neighborhoods.
Research
Posts about NCRC research.
Preliminary Analysis of 2019 HMDA Mortgage Lending Data
The Consumer Financial Protection Bureau (CFPB) released the 2019 Home Mortgage Disclosure Act (HMDA) data on June 24, 2020, detailing mortgage lending information from nearly all lenders in the United States. HMDA offers details on 9.3 million originations resulting from over 17.5 million applications.
Preliminary Analysis of 2019 HMDA Mortgage Lending Data Read More »
Same-Sex Couples and Mortgage Lending
Introduction The National Community Reinvestment Coalition has analyzed new data available to researchers for the first time to determine borrower patterns among same-sex couples, in comparison to different-sex couples. Our research question was, will same-sex couples pay higher closing costs and more interest on mortgage loans than different-sex couples? From our analysis of 2018 Home
Same-Sex Couples and Mortgage Lending Read More »
Study: Before COVID-19, a small number of booming cities struggled with gentrification. The rest simply struggled.
San Francisco was the most intensely gentrified city in America from 2013 to 2017, a new study found. But the emergence of COVID-19 exposed deep economic and social fault lines nationwide. While a small number of cities were booming, most were not.
Gentrification and Disinvestment 2020
Gentrification and Disinvestment 2020   COVID-19 struck a nation that was already mostly struggling. Do Opportunity Zones benefit or gentrify low-income neighborhoods?  Jason Richardson, Director, Research & Evaluation, NCRCBruce Mitchell, Ph.D., Senior Research Analyst, NCRCJad Edlebi, GIS Specialist, NCRC June 2020 EXECUTIVE SUMMARY COVID-19 exposed deep economic and social fault lines nationwide, with profound implications for
Gentrification and Disinvestment 2020 Read More »
Do CRA Ratings Reflect Differences in Performance: An Examination Using Federal Reserve Data
Key Findings Better outcomes on the retail lending test usually corresponded to higher ratings but the differences in performance were not as wide as expected Performance measures used to assess community loans and investments tended to indicate greater differences in bank performance across ratings categories This paper suggests the need for refining performance measures and
Limiting Interest Rate and Rate Spread Outliers in HMDA Data
The Consumer Finance Protection Bureau (CFPB) included a number of new datapoints in the 2018 release of the Home Mortgage Disclosure Act Data (HMDA), which came out in September 2019.
Limiting Interest Rate and Rate Spread Outliers in HMDA Data Read More »
Summary Fact Sheet on the OCC’s Final CRA Rule
The Office of the Comptroller of the Currency’s (OCC) final Community Reinvestment Act (CRA) rule released on May 20 would lessen the public accountability of banks to their communities by enacting performance measures on CRA exams that would be complex and opaque while at the same time over-simplifying how to measure bank’s responsiveness to local needs.
Summary Fact Sheet on the OCC’s Final CRA Rule Read More »
Racial Wealth Snapshot: Asian Americans and the Racial Wealth Divide
Download Infographic Introduction Asian Americans are the fastest growing racial group in the United States, and are predicted to be the nation’s largest immigrant group in 50 years.[1] Asian American is a racial category that includes Americans who are from or whose relatives are from a diverse group of countries: China, Korea, Japan, India, Pakistan,
Racial Wealth Snapshot: Asian Americans and the Racial Wealth Divide Read More »
Mortgages and Older Adults after COVID-19
Key Findings 30% of mortgages in 2018 went to older adults. 67% of older adults who took out mortgages were refinancing their homes and 68% of those used the mortgage to access the equity in their homes. Older borrowers were Whiter than younger borrowers. As with younger borrowers, there are racial disparities in interest rates
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CFPB, FHFA Establish New Borrower Protection Program to Respond to COVID-19 Pandemic
This month, the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) announced the new Borrower Protection Program that streamlines consumer protection oversight of mortgage servicers through new data and information sharing between the program sponsors as they respond to the coronavirus pandemic.
CFPB, FHFA Establish New Borrower Protection Program to Respond to COVID-19 Pandemic Read More »
CFPB Provides Advice, Guidance on COVID-19 Resources
In a confusing and scary time, the CFPB is a source for unbiased and informed information on a variety of financial hurdles that families can expect to face in the coming months.
CFPB Provides Advice, Guidance on COVID-19 Resources Read More »
COVID-19 Hits Black and Hispanic Businesses Hardest of All
We already know that Black and Hispanic-owned small businesses are severely under- represented in communities, and the COVID-19 pandemic will likely damage these businesses especially hard. In a report that should surprise no one, researchers with the JPMorgan Chase Institute found that businesses located in Black and Hispanic communities are less likely to have the cash
COVID-19 Hits Black and Hispanic Businesses Hardest of All Read More »
Proposed OCC and FDIC Geographic Analysis of Home Mortgage and Small Business Lending: Permission to Decrease Lending for the Largest Banks?
Executive Summary The proposed changes to the Community Reinvestment Act (CRA) released by the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) would radically reconfigure the testing criteria for banks.  A new testing regime would assess low- and moderate-income (LMI) home mortgage and small business lending with a demographic comparison
The CRA Evaluation Measures Would Allow Banks to Relax their Retail Lending to LMI Borrowers and Communities
The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have proposed changes that would dramatically alter the Community Reinvestment Act (CRA) examination of banks. Their proposal would create a metric, called the CRA evaluation measure, that would be the dominant measure for determining a bank’s rating. As long as a