Philadelphia Bank Loans – OHCD Phila http://ohcdphila.org/ Wed, 23 Nov 2022 22:30:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://ohcdphila.org/wp-content/uploads/2021/06/icon-5-150x150.png Philadelphia Bank Loans – OHCD Phila http://ohcdphila.org/ 32 32 US banks with highest Texan ratios in Q3’22 https://ohcdphila.org/us-banks-with-highest-texan-ratios-in-q322/ Wed, 23 Nov 2022 22:30:35 +0000 https://ohcdphila.org/us-banks-with-highest-texan-ratios-in-q322/ The number of U.S. banks with an adjusted Texas ratio above 100% increased for the third consecutive quarter and reached its largest size since the second quarter of 2020. However, large amounts of unrealized losses in some banks’ available-for-sale portfolios – which impact tangible equity – appear to be responsible for the spike rather than […]]]>

The number of U.S. banks with an adjusted Texas ratio above 100% increased for the third consecutive quarter and reached its largest size since the second quarter of 2020.

However, large amounts of unrealized losses in some banks’ available-for-sale portfolios – which impact tangible equity – appear to be responsible for the spike rather than a serious credit slippage or a large regulatory capital shortfall. After excluding accumulated other comprehensive income, or AOCI, from tangible common equity, no U.S. bank had a Texas ratio above 100% as of Sept. 30, according to an analysis by S&P Global Market Intelligence.

S&P Global Market Intelligence defines the Texas adjusted ratio as non-performing assets plus loans past due 90 days or more — excluding defaulted government-guaranteed loans and other real estate held covered by loss-sharing agreements with the Federal Deposit Insurance Corp. – divided by tangible equity plus loan loss reserves. Provision for credit losses on off-balance sheet credit exposures is not included in loan loss reserves. A high Texan ratio does not necessarily imply potential default, but the ratio is a good measure of a bank’s ability to absorb future losses.


AOCI impacts Texas ratios in Q3

Changes in the values ​​of available-for-sale portfolios are captured in AOCI, but AOCI losses are not an immediate regulatory issue since regulatory capital rules allow most banks to add the book value losses to regulatory capital, Troutman Pepper’s attorneys wrote of the company. website.

However, “banks will need to remain vigilant of potential regulatory issues related to AOCI losses,” they added. “At some point, these AOCI losses may become a regulatory issue if the unrealized losses negatively impact a bank’s earnings rating or if the portfolio needs to be accessed for liquidity purposes and the unrealized losses must be carried out.”

Some investors have questioned whether banks may need to recognize unrealized losses to meet growing liquidity needs in the face of deposit outflows, Raymond James analysts wrote in a Nov. 14 note.

“If banks were forced to sell AFS/HTM securities to fund deposit outflows, these losses would be realized and flow through the income statement, in turn weighing on regulatory capital,” the analysts wrote. “While the forced sales of the HTM book are something of a black swan event, it’s not out of the realm of possibility. In fact, we’re hearing more and more investors factor it into their outlook for investment.”

While the AOCI losses do not create a capital problem for a stand-alone business, advisers suggested they may hamper some banks’ efforts to pursue a sale, such as with Republic First Bancorp Inc., based in Philadelphia.

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Thirteen U.S. banks and thrifts posted an adjusted Tex ratio above 100% in the third quarter, up from six in the previous quarter, and the third consecutive quarterly increase after a steady decline throughout 2021.

The US banking sector adjusted median ratio edged up for the second consecutive quarter to 3.14% in the third quarter, from 3.10% in the related quarter. The increase in the second quarter was the first quarter-over-quarter increase in two years.

For banks with Texan ratios above 100%, all but Monticello, Iowa-based Citizens State Bank had lower tangible capital balances in the third quarter due to unrealized losses on portfolios available at sales recorded during the quarter.

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Who’s on the list

Kaw Valley State Bank, based in Eudora, Kansas had by far the highest Texan ratio at 15,500% at the end of the third quarter, as its tangible equity fell into negative territory due to mounting unrealized losses in its available-for-sale portfolio. Securities accounted for 57.7% of Kaw Valley’s assets and nearly 85% of the institution’s securities were due for repricing or maturing in more than five years.

Rotan, Texas-based First National Bank and Tampa, Kansas-based Tampa State Bank rounded out the top three with 859.5% and 815.9%, respectively. Of the six banks that posted a Texan ratio above 100% in the second quarter, Tampa State Bank, Citizens State Bank and Farmers State Bank, based in Elmwood, Illinois, did not fall below the threshold of 100% in the third quarter.

Nine other banks had an adjusted ratio between 70% and 100% at the end of the third quarter, compared to seven in the second quarter. Among these banks, BancCentral NA based in Alva, Okla.; Monterey County Bank, based in Monterey, California; and Kentucky-based Peoples Bank & Trust Co. of Hazard posted ratios above the 100% threshold in the second quarter.

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Excluding AOCI

With AOCI removed from tangible equity, no bank posted a Texan ratio above 100%. Outside of AOCI, Security State Bank of Kenyon, based in Kenyon, Minn., had the highest Texan ratio at 75.4%.

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Biggest Takeaway Midterm: The Economy Is Stronger Than We Thought https://ohcdphila.org/biggest-takeaway-midterm-the-economy-is-stronger-than-we-thought/ Thu, 10 Nov 2022 18:00:00 +0000 https://ohcdphila.org/biggest-takeaway-midterm-the-economy-is-stronger-than-we-thought/ The day after the midterms, I was at a small business client, and of course everyone was talking about the results and how the Democrats had done much better than expected. A woman, Linda, said something that really caught my attention. She said she voted for Lt. Gov. John Fetterman (D-Pa.) because of his stance […]]]>

The day after the midterms, I was at a small business client, and of course everyone was talking about the results and how the Democrats had done much better than expected.

A woman, Linda, said something that really caught my attention. She said she voted for Lt. Gov. John Fetterman (D-Pa.) because of his stance on abortion. Another person, David, said the same thing and that he was also concerned about some of the more radical Republicans. I’ve heard similar stories from other employees discussing their vote, ranging from a mistrust of former President Trump to concerns about voting rights. But you know what hasn’t been mentioned? The economy.

Linda earns around $50,000 a year. David does much the same. Aren’t they the ones most affected by a “slowing economy”, “high inflation” and “declining markets”? You would think so. You would think they would be so upset with what is happening to their wallets that they would vote for a change.

But no, those people didn’t vote with their wallets this time. Their concerns were other non-economic issues. Why? Because if there’s one conclusion that resonated the most mid-term, it’s this: maybe the economy isn’t so bad.

Take my client, a 150-person manufacturer in New Jersey. 2022 has been a profitable year for them. They have added employees and are looking for more. They bought equipment and stocks. They raised prices and were also the beneficiaries of price increases. They’ve done so well this year that we had to increase their estimated tax payments so they wouldn’t be hit with a big bill in January. Sure, they’re concerned about the outlook for 2023, but it’s not uncommon to have a good year and look to an uncertain future.

And what about their employees? We read that inflation is at 8.2% and food and gasoline prices have “soared”. But, according to recent data from payroll company ADP, employees and their clients have seen an average salary increase of 7.7% over the past year. And those who took part in the “Great Resignation” by changing jobs were rewarded with an average 15% increase in salary.

Given these numbers, it seems like most employers are struggling to keep their employees on par with inflation. You can’t blame them. With unemployment so low and job vacancies so high (another reason workers don’t seem so worried about the economy), companies need to do everything they can to retain their best talent.

I live in downtown Philadelphia. The restaurants here are busy. Walnut Street retail stores claimed the vacancies that hit our mall after the 2020 riots. More and more people have returned to their office buildings (or are working from home on a hybrid schedule). Diners overflow from expensive Broad Street steakhouses. The airport, like the two dozen other airports I’ve traveled to in the past six months, is packed with travelers, which should come as no surprise given that the Transportation Security Administration reports that the number of air travelers is even or above pre-pandemic levels. More than a few hotels I have stayed at have been fully booked.

And yes, the price of gas is higher. But it’s not the 1970s, when my dad’s car had 27 gallons per mile. It may cost more to fill, but this tank goes much further thanks to the fuel efficiency of today’s cars.

So where is the recession? GDP grew by 2.6% this quarter. Household wealth, although affected by the market downturn, remains at historically high levels, as does consumer spending. Commercial real estate is enjoying its “biggest revival in years”, according to a recent report. Manufacturing is down, but the service sector now employs more people than before the pandemic and remains strong. The stock market has fallen, but when is the stock market a reliable indicator of the economy? Small business confidence fell slightly in October for the first time in four months. The real estate sector is suffering due to rising mortgage rates and a dizzying increase in housing stock. But let’s say 2020 and 2021 were banner years and also hope these realtors saved a few bucks from there.

Instead of relying on polls that dubiously measure “optimism” and “confidence,” I discovered that there was no better place to get a gauge on the economy than by examining real bank data. And the data, as of September 30, is good.

Wells Fargo CEO Charles Scharf said “retail and business customers remain in a strong financial position.” JP Morgan Chase CEO Jamie Dimon, who isn’t exactly an economic optimist, admitted that consumers are “in good health” as “plentiful job openings and still abundant household savings for the instant kept credit card spending high and bad debt low.”

All is not rosy. Interest rates are rising, inflation remains stubbornly high, the tech industry is collapsing, capital is harder to come by, and companies seem to be gearing up for big layoffs. Due to a global economic slowdown, volatile energy prices, a war in Ukraine, and ongoing pandemic-related supply chain issues, many economists are predicting a recession in 2023.

But let’s face it, right now the economy doesn’t look that bad. If it were bad, we would see many more voters like Linda and Dave more concerned about their bank accounts than about abortion or the right to vote. This did not happen in these mid-terms.

Gene Marks is the founder of The Marks Group, a small business consulting firm. He frequently appears on CNBC, Fox Business and MSNBC.

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Black anti-Semitism is not uncommon. It’s rooted https://ohcdphila.org/black-anti-semitism-is-not-uncommon-its-rooted/ Sun, 06 Nov 2022 15:41:00 +0000 https://ohcdphila.org/black-anti-semitism-is-not-uncommon-its-rooted/ Chicago Bulls vs. Brooklyn Nets – Credit: Getty Images Ronnie Lee refused eat pork. “The pork”, he said, “was unclean”. My older cousin was never particularly religious. In fact, the only time I remember Ronnie Lee in the pews of a church was for various family funerals and weddings, where he often came dressed to […]]]>

Chicago Bulls vs. Brooklyn Nets – Credit: Getty Images

Ronnie Lee refused eat pork. “The pork”, he said, “was unclean”.

My older cousin was never particularly religious. In fact, the only time I remember Ronnie Lee in the pews of a church was for various family funerals and weddings, where he often came dressed to perfection with a very shiny Stacy Adams and a brimmed fedora hat. silk adorned with a peacock. feather like he was heading to a Player’s Club ball. Once, a few days after someone smeared a hail of buckshot on his back during a failed robbery, he hobbled into Aunt Gerald’s house in search of a hot plate and a warm bed. We never found out who the actual victim was, as Ronnie Lee was sometimes the one stealing. Between the women, the drugs and the stints in prison, he managed to father 11 or 12 children at last count.

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Under-educated and prone to conspiracy theories, when he had a little booze in him, he poked fun at “staged” moon landings and the blight of the Reagan-era economy from the front porch. He was right about Reagan, but he thought the Jewish people controlled everything from the World Bank to the Great Ethiopian Famine. For him, Jew was a verb most often used to describe negotiating a price, deceiving a customer, or predatory high-interest loans. “They have too much power,” he said. “We are the lost tribes of Israel.”

Over the years, he was so often drunk that a Georgia judge made him hand over his truck’s license plates. His mom, my aunt, loved him dearly even though she thought his view of the world was poppycock. “Get out of here with that noise, Ronnie Lee,” she said.

Ronnie Lee was just this crazy uncle who had to be suffered if not pitied. After refusing vaccinations against COVID-19, he died a few years ago with his children by his side. But the deep-rooted anti-Semitism he nurtured throughout his adult life lives on.

For the past few days, with the Brooklyn Nets suspending him and Nike cutting ties with NBA star Kyrie Irving, I’ve been wondering if I might need to throw away the brand new pair of high-tops that I bought for my granddaughter. I couldn’t help but think that the proselytizing of the Australian-born first draft pick was a lot like Ronnie Lee’s. Then there is Kanye West. A self-proclaimed genius and free-thinker, the artist now known as Ye has compared himself and the financial bombardment he endures to George Floyd and Emmett Till. After apologizing for blaming Floyd’s death on fentanyl, West said he knows what it’s like to have someone’s foot on your neck. In an Instagram post, he called his widespread condemnation and disgrace a “digital lynching” and likened it to the bankruptcy of his “social credit score”. The rapper, producer, fashion designer and now former chart-topping billionaire included a photo of a grossly disfigured Til, a 14-year-old who was lynched in 1955, in his coffin.

Twitter was on in disgust. I was struck, however, by the idea that some posters think that this form of black anti-Semitism is somehow new and rare. I can tell you, without pause or question, that is not the case. Far from rare, such bigotry and echoes of Black Hebrew Israelite anti-Semitism were and still are commonplace in many quarters. Equally important, however, is the cavalcade of voices – black people – ready to shout them out. But it resurfacing — from the mouths of celebrities and on social media like Tik Tok — is both infuriating and dangerous. I don’t have to go very far to find another Ronnie Lee. A few minutes of doom-scrolling will inevitably bring up another Kanye fan, who believes he’s being punished for “telling the truth” and wonders where the outrage was when he called slavery “a choice.”

What they lack is the well-documented and storied history of the alliance between blacks and Jews. Our struggle was theirs and theirs was ours. You see, there were two Jewish boys – Andrew Goodman and Michael Schwerner – in the car with James Chaney the day they were abducted and murdered in Philadelphia, Mississippi. They had come south from New York in 1964 during Freedom Summer to help register black people to vote. Not only did they bleed and die for the cause of human rights, but ultimately American Jews played a significant role in founding and funding some of the most popular civil and human rights organizations. most critics – NAACP, Southern Christian Leadership Council and the Student Nonviolent Coordinating Committee among which their.

“As early as the 19th century, Jewish merchants were virtually the only merchants in the South who addressed black customers as ‘Mr.’ and ‘Ms.’ and allowed them to try on clothes,” wrote Howard Sachar, author and professor of modern history at George Washington University.

In 1954, the work of Dr. Kenneth Clark, a black sociologist, who demonstrated the impact of segregation on black children, was presented to the Supreme Court in the landmark case Brown v. Board of Education, commissioned by the American Jewish Committee.

Philanthropist Julius Rosenwald, in partnership with Booker T. Washington, helped establish more than 5,000 schools for black children and contributed funds to approximately 20 historically black colleges and universities (HBCUs). Rosenwald wanted to sow generations of freethinkers, young men and women who could chart our destinies and grow wealth for centuries. To achieve this, he knew that access to a valid education was essential.

The Rosenwald-Washington pattern has continued through the decades as black and Jewish leaders join arms to fight for social justice. The Black-Jewish Alliance of the Anti-Defamation League in Philadelphia was formed to fight racism and anti-Semitism in 2017. The Black/Jewish Coalition of Atlanta came together in 1982 to campaign for renewal voting rights law.

In the 1960s, the rise of black nationalism fanned the flames of anti-Semitism in black communities. They did it from within. Along with its empowering messages of self-sufficiency, black nationalism broke with nonviolent Kingian theologies and attempted to shred the social compact between blacks and Jews. For the separatists, their own influence depended in part on their ability to close the relationship, push Jews out of dark spaces and reject the organizations that welcomed them.

History was never Ronnie Lee’s forte and I’m sure he’s never heard of Rosenwald and wouldn’t know Huey Newton or Stokely Carmichael if they rose from the dead and danced on MLK Drive. Unquestionably, Kanye and Kyrie suffer from the same dilemmas. They are, in many ways, attached to the bastard theological diatribes of Minister Louis Farrakhan – which, presumably, Ronnie Lee picked up while serving time for armed robbery in the Illinois State Penitentiary in early 1970s. Farrakhan, perhaps the most prominent black anti-Semite of the modern era, according to the ADL, “frequently denies that Jews have a legitimate claim to their religion and to the land of Israel, claiming that Judaism is nothing more than a ‘deceptive lie'”. ‘ and a ‘theological fallacy’ promoted by Jews to strengthen their control over the US economy and foreign and domestic policy.

That Kanye grew up in Chicago, a short distance from the Nation of Islam’s world headquarters, no one should forget. NOI was formed in Detroit before moving to Chicago and branched out throughout the Midwest before expanding to places like Oakland, New York and Baltimore. A young Kanye, who grew up in south Chicago — a 15-minute drive down Southshore Drive from the home of NOI leader Elijah Muhammad — would have had a front row seat. Five hours away, in southeastern St. Louis, black separatism has also reached our tables. I grew up hearing about “white devils” and “stolen” land.

“The Holy Land does not belong to a white Arab or a white Jew. You are settlers on our land,” Farrakhan said in a 2017 interview with a Chicago radio station. “We are the original owners of this part of the earth and you have driven us all out and taken our place… But now God has come and we come to claim what is ours.”

However, you don’t have to live in the Midwest to be infected with its poison and ignominy. These teachings have been swirling through our streets across the country, by word of mouth, for about 50 years and counting.

Irving, who is unsurprisingly also a flat terror, last Thursday tweeted a link to the film Hebrews to Negroes: Wake Up Black America, which accuses Jews of worshiping Satan and plotting world domination. For this, West called him a “true”.

Ironically, our own ancestors – Ronnie Lee’s and mine – are also of Jewish descent. Mary Helfner, the paternal grandmother of her father Albert and her aunt Josie, was a Jewish woman from Henrico, Arkansas. And my father’s family is from Judah, Solomon and Jenni Levi, who were Hungarian Jews. But the ties that unite us should not be only blood. After all, the very first anti-immigration laws this country ever passed were based on a xenophobic backlash against Jews fleeing Nazi Germany and other parts of Europe. Many emigrated to Saint-Louis where we lived. The so-called Great Replacement theory — the white nationalist trope espoused by the Tiki Torch-wielding miscreants in Charlottesville, Virginia — has been used to justify the murder, looting and maiming of Jews and black people.

We cannot afford to be manipulated into gutting that solidarity by baked-in-prison theologies or being servants of white supremacy. Our job is to keep calling it and shouting it, no matter who indulges in the filth of anti-Semitism. No matter what other gifts they may have to entertain us, we can’t let go. We can’t be hypnotized by the Klieg lights, the roaring fans in the stands or the latest bop on the radio. While Farrakhan himself doesn’t command the multitudes he once did, sadly his message surely does. What makes Kanye and Kyrie so dangerous and smart is that there are thousands of young black boys who see them, see their success and their wealth, and believe them. We can’t let this fester for another 50 years. We can’t let our kids think it’s okay. You have to make it hard for hate to get out of bed in the morning and find another way to go to the bank.

Goldie Taylor is the author of a forthcoming memoir, THE LOVE YOU SAVE, which will be released in January 2023 by HarperCollins/ Hanover Square Press

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What is a payday loan and other types of predatory loans? https://ohcdphila.org/what-is-a-payday-loan-and-other-types-of-predatory-loans/ Thu, 03 Nov 2022 09:01:17 +0000 https://ohcdphila.org/what-is-a-payday-loan-and-other-types-of-predatory-loans/ Financial watchdog groups have raised concerns about predatory lenders taking advantage of low-income Americans who need cash fast as soaring inflation squeezes consumers. So what is predatory lending? Predatory lending imposes unfair or abusive loan terms on borrowers, including triple-digit interest rates and tight repayment terms. Meanwhile, a “fair” loan guarantees the same lending opportunities […]]]>

Financial watchdog groups have raised concerns about predatory lenders taking advantage of low-income Americans who need cash fast as soaring inflation squeezes consumers.

So what is predatory lending?

Predatory lending imposes unfair or abusive loan terms on borrowers, including triple-digit interest rates and tight repayment terms. Meanwhile, a “fair” loan guarantees the same lending opportunities to all consumers, including low-cost loans for those with good credit scores, according to federal guidelines.

A predatory lender can also persuade a borrower to accept abusive terms through deceptive, coercive, exploitative or unscrupulous actions, according to Orlando-based debt.org, an online site that provides advice from financial experts. An example is lenders targeting borrowers with credit problems or who have recently lost their jobs.

Predatory lending practices can also include fraudulent, deceptive and unfair tactics that lenders use to “trick” consumers into loans they cannot afford, according to the U.S. Attorney’s Office for Eastern Pennsylvania, who cites high mortgage costs as contributing to borrowers who cannot keep their homes in good repair.

A person rides a scooter past a check cashing and payday loan store on March 11, 2022, in downtown Los Angeles.
PATRICK T. FALLON/AFP via Getty Images

The Center for Responsible Lending, a North Carolina-based nonprofit research organization working to end predatory lending, released a study in late September that looked at the “persistent harms of high-cost installment loans.” , a form of predatory lending that includes “rental” bank loans. The group says it found that predatory lending had a greater impact on people of color and low-income people.

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Black Families Fall Further Behind in Homeownership | New https://ohcdphila.org/black-families-fall-further-behind-in-homeownership-new/ Sat, 22 Oct 2022 19:30:00 +0000 https://ohcdphila.org/black-families-fall-further-behind-in-homeownership-new/ Some cities and states are trying to boost black homeownership, which has fallen to a 60-year low even before the economic turmoil caused by the COVID-19 pandemic. Black home ownership fell in 2019 to 40.6%, down from the 2004 peak of 49.7%. The rate has rebounded somewhat since then, but advocates remain appalled at how, […]]]>

Some cities and states are trying to boost black homeownership, which has fallen to a 60-year low even before the economic turmoil caused by the COVID-19 pandemic.

Black home ownership fell in 2019 to 40.6%, down from the 2004 peak of 49.7%. The rate has rebounded somewhat since then, but advocates remain appalled at how, decades after the 1968 Fair Housing Act, black families are still struggling to become homeowners at the same rate as their white peers.

“To see Black homeownership lower than the previous generation is shocking, given what previous generations have faced,” said Janneke Ratcliffe, vice president of the Urban Institute’s Housing Finance Policy Center. of Washington, DC.

The persistence of redlining, the Great Recession, gentrification and the growing number of homes reclaimed by investors have all contributed to a growing disparity between black and white homeownership, which is greater now than ever before. it wasn’t in the early 1960s, before the 1968 Fair. Housing Act and other civil rights legislation.

The Urban Institute works with cities in a dozen states and the District of Columbia on strategies to restore black homeownership. Among them are financial assistance for black homebuyers to help cover down payments and closing costs, and support for current homeowners facing foreclosure.

The gap between white and black homeownership rates is wider today than it was in 1960, when housing discrimination was rampant and legal, according to data from the US Census Bureau. In 2022, 74.6% of white households owned their homes, compared to 45.3% of black households, a difference of more than 29 points. In 1960, the homeownership rate for whites was 65% and that for blacks 38%, a difference of 27 points.

Recent complaints against banks accused of denying loans to buyers in predominantly black and Hispanic neighborhoods illustrate the barriers that exist.

Last month, for example, New Jersey-based Lakeland Bank set up a $12 million homeownership fund as part of a settlement with the US Department of Justice, which had accused of redlining. The bank has not admitted wrongdoing, but it has agreed to increase mortgage lending in communities of color following a seven-year federal investigation into its lending practices.

Over the past year, the Justice Department has negotiated similar settlements with lenders in Houston, Memphis and Philadelphia.

Earlier this month in Washington, D.C., Mayor Muriel Bowser, a Democrat, unveiled a plan that aims to add 20,000 black households to the city’s homeownership ranks by 2030. Among other strategies, the city will use $10 million to create a public-private fund that would make homes more affordable for Black families; helping residents transfer their homes to their children and heirs; and expedite zoning and permitting for affordable housing.

“We know that if we can close that gap, we can increase black wealth in our city,” Bowser said at an Oct. 3 news conference. “We know that’s the way to pass on generational wealth.”

Brittany Freeman of Washington, D.C., speaking at Bowser’s press conference, said she grew up in transitional housing for homeless people in the district and got help from the government before graduating from college and using a city-sponsored down payment and closing cost assistance to purchase a home.

“Home ownership is possible, and I’m definitely my ancestors’ wildest dream,” Freeman said.

Down payment assistance is the most important help black homebuyers need, Ratcliffe said. With longer histories of homeownership, white families are more likely to financially help their children buy homes, she said.

Some of the Washington, DC strategies target all families, regardless of race. Others, such as bridging loans to prevent foreclosure and money for renovations, are targeted specifically at black homeowners. The task force that made the recommendations has asked for a legal review to make sure these preferences are legal. The mayor’s office did not respond to Stateline’s inquiries about the status of that review.

Republican U.S. senators have opposed similar national policies, announced in June by the Federal Housing Finance Agency, to help black and Latino buyers.

“Discrimination based on skin color is simply wrong. It remains true even when intended to benefit minorities,” wrote a dozen GOP senators in a July letter.

Black homeownership in the District of Columbia improved 1 point to 35% last year, down 3 points from 2010.

Black homeownership has not declined in all states over the past decade, and it has declined faster in some states than in others. Between 2010 and 2021, the percentage of black residents who own their homes increased by 3 points in New York and Delaware and by 2 points in South Carolina and Illinois, according to the Census Bureau’s American Community Survey.

Over the same period, black homeownership fell 3 points in Mississippi, Ohio, Tennessee, and Texas, as well as in the District of Columbia.

Last year, the city with the smallest black-white homeownership gap was Jersey City, New Jersey, a high-rental city where white homeownership was 32%, compared to 25% for black households. Detroit (59% to 50%) and Philadelphia (58% to 48%) also had relatively small gaps.

Recent price increases have made housing more unaffordable for black buyers, relative to their incomes, in California, Oregon and Utah, said Nadia Evangelou, senior economist at the National Association of Realtors, a trade group that has studied race and home affordability in a report this year.

The most affordable states for black families were Kansas, Maryland and West Virginia.

In Tennessee, the Housing Development Agency is working with mortgage bankers on the Convergence Memphis program, which aims to increase black homeownership in the Memphis area with more affordable housing and financial education. Organizers worked with the Urban Institute on the plan, according to Katie Fallon, senior policy officer at the institute. The group also contributed to Bowser’s plan.

Convergence Columbus in Ohio, which also worked with Urban, has similar goals and includes the Ohio Housing Finance Agency. An expansion to Philadelphia is planned for next year.

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Tina Kotek is a housing champion, a friend of work and an enemy of Phil Knight https://ohcdphila.org/tina-kotek-is-a-housing-champion-a-friend-of-work-and-an-enemy-of-phil-knight/ Thu, 20 Oct 2022 21:00:00 +0000 https://ohcdphila.org/tina-kotek-is-a-housing-champion-a-friend-of-work-and-an-enemy-of-phil-knight/ Editor’s Note: This is part of our series featuring the top three gubernatorial candidates, Republican Christine Drazan, Democrat Tina Kotek, and unaffiliated candidate Betsy Johnson. Since announcing her intention to run for governor last year, Tina Kotek has been in a strong position. With nearly a decade as one of the most powerful politicians in […]]]>

Editor’s Note: This is part of our series featuring the top three gubernatorial candidates, Republican Christine Drazan, Democrat Tina Kotek, and unaffiliated candidate Betsy Johnson.

Since announcing her intention to run for governor last year, Tina Kotek has been in a strong position.

With nearly a decade as one of the most powerful politicians in the state, the former House speaker was consistently considered the frontrunner in a Democratic primary that included state treasurer Tobias Read and — for a brief period — New York Times columnist Nicholas Kristof. Her practical win in that race only solidified her credentials as a contender to beat this year.

But Kotek’s surefire position at the front of the pack seems less certain lately. Polls show Republican Christine Drazan even with, or possibly ahead of, the Democrat. Oregon’s race is poised to be perhaps the nation’s closest gubernatorial contest this year for two main reasons: Voters are angry at the status quo under Democrats, and the unaffiliated candidate Betsy Johnson has muddled the political calculations of the state with her well-funded game for the electoral milieu.

Despite all that, it’s been 40 years since Oregon put a Republican in the governor’s mansion. Betting against Kotek, who could become the nation’s first open lesbian governor if she wins, could still be a shaky decision.

It’s a transplant



Kotek grew up in York, Pennsylvania, a conservative county seat about two hours west of Philadelphia. She excelled in school, layering in numerous sports and extracurricular activities in addition to academics, and was accepted into the prestigious Georgetown University.

Democratic gubernatorial candidate Tina Kotek speaks to supporters during election night at Revolution Hall on May 17, 2022 in Portland, Ore.

“She was not a troublemaker,” Kotek’s older sister, Susan Sprague, told OPB earlier this year. “Tina doesn’t settle for second place very well, and she can usually be first, both academically and athletically.”

But Georgetown was not a good choice. Kotek followed friends west to Eugene and the University of Oregon, where she majored in religious studies. Except for a few years in Seattle for college, she’s been in Oregon ever since.

Kotek won his first race for the state House of Representatives in 2006, after jobs at the Oregon Food Bank and Children First of Oregon.

She is all about housing and has been for years

No legislator in recent history has done more on housing. If elected, Kotek promises to do more.

Tina Kotek visits Arbor Lodge homeless shelter in North Portland on her last day as Speaker of the Oregon House of Representatives, January 2022.

Kristyna Wentz-Graff

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OPB

Tina Kotek visits Arbor Lodge homeless shelter in North Portland on her last day as Speaker of the Oregon House of Representatives, January 2022.

Under his leadership, Oregon became the first to have a statewide rent control bill, preventing landlords from raising rents above a certain percentage each year. She pushed through a measure allowing cities with more than 10,000 inhabitants to build duplexes and triplexes to increase the housing stock, despite neighborhood zoning restrictions. Most recently, she helped secure $75 million in public funds to turn motels into emergency shelter beds to increase the state’s bed supply for homeless people by 20%.

“We just need to take building a lot more housing more seriously,” Kotek wrote in response to questions from the OPB. “The aim will be to build enough housing to meet the needs of those currently homeless, to address the current housing shortage and to keep pace with future housing demand over the next decade.”

Kotek also pledged to close the racial homeownership gap by 20% by 2027.

Oregon has a history of discriminatory and racist practices, such as banks refusing loans, raising interest rates, and not renting or selling homes to people of color. Kotek said she would help increase installment assistance programs, crack down on discriminatory practices, and partner with culturally-specific organizations to reach BIPOC households across the state to close the gap.

She broke the record – and made enemies

Kotek became Speaker of the House in 2013, after helping Democrats win back a majority in the House. She did not give up the job until earlier this year, when she resigned to run for governor.

The nine-year stint marked the longest tenure of any speaker in state history — and Kotek did a lot during that time. As Democrats steadily widened their majority in the House, she helped pass major bills to fund schools, raise the minimum wage, expand paid vacations for workers, create new regulations on firearms, protection of access to abortion, etc.

Kotek’s supporters say she is a driven, driven leader who works hard to master the topic of any given political debate and can wear down reluctant parties.

Oregon House speaker Tina Kotek on May 18, 2021.

Kristyna Wentz-Graff

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OPB

Oregon House speaker Tina Kotek on May 18, 2021.

But not everyone is a fan. Towards the end of her term as president, Kotek saw growing criticism from moderate Republicans and Democrats that she had become too rigid and would seek success at any cost.

One example stands out: Last year, Kotek convinced House Republicans to stop using delay tactics by giving them an equal voice in the task of drawing new political maps once a decade. The deal meant the GOP would have veto power over any map it deemed biased in favor of the Democrats.

But when it became clear that the Republicans, led by Drazan, would do just that, Kotek quickly broke the deal. Democrats adopted their favorite cards despite concerns from Republicans.

Kotek’s opponents suggest this is a sign that she would not be a trustworthy negotiator if elected governor.

She criticizes the outgoing governor

At least she is now.

When Kotek launched her first gubernatorial campaign, she was extremely reluctant to hit on incumbent Governor Kate Brown, with whom she had worked closely as a speaker.

“I won’t tell the quarterback Monday morning what the governor went through,” Kotek said in January. “I mean, that’s a lot.”

But Kotek had a problem: Polls suggest Brown is the least popular governor in the country. And with many Oregonians clearly discouraged by rising homelessness, crime, and a state government that has repeatedly bungled major initiatives, Kotek increasingly felt the need to more forcefully push back against accusations that she is “Kate Brown 2.0”.

Democratic gubernatorial candidate Tina Kotek chats with voters during the Pancake Breakfast, a tradition during the Pendleton Round-Up in September 2022.

Democratic gubernatorial candidate Tina Kotek chats with voters during the Pancake Breakfast, a tradition during the Pendleton Round-Up in September 2022.

“Oregon can do great things,” Kotek told the Oregonian/OregonLive editorial board recently. “We haven’t had the leadership in our governor’s office over the past few years to make this happen and I’ve had enough.”

Kotek’s campaign was always based in part on the premise that Brown was not a competent administrator of state government. Her main commitment to the people of Oregon is that she would bring a firm hand and tight oversight to the many agencies under her authority as governor.

work loves it

Kotek stayed competitive in the most expensive race in state history with help from unions, progressive advocacy groups and National Democrats. The Democratic Governors Association is its largest donor, with nearly $6 million in contributions as of Oct. 18.

This national interest in a race in Oregon is notable and has been reflected in the Republican Governors Association’s support for Drazan. But Kotek has also won unprecedented support from one of its longtime allies: the Service Employees International Union.

The state’s largest labor group, the SEIU has long been a major supporter of Democratic candidates, including incumbent Governor Kate Brown. But with nearly $2 million spent supporting Kotek so far, the union has never been more invested in an Oregon candidate.

Kotek often presents herself as a friend of working families and said her values ​​align with SEIU, the Oregon Education Association and other left-wing labor groups. Critics accuse him of being too beholden to unions, a common criticism of Democratic politicians in Oregon.

Kotek also has a more personal connection to the union. His wife, Aimee, was once an employee of SEIU.

Phil Knight did not

Billionaire Nike co-founder Phil Knight has donated to political candidates in Oregon for years, but lately his donations have taken a turn.

While Knight used to give relatively small amounts to Democrats and Republicans, he recently expressed his displeasure with the status quo by giving huge sums to Republicans.

This year, Knight’s favorite candidate is anyone but Kotek.

Early in the race, he spent big on Johnson, bolstering his unaffiliated bid with $3.75 million. This is the most an individual has given to an Oregon candidate in the state’s history.

But now Knight has changed tack. With Johnson’s polls stubbornly low, he recently donated $1 million to Drazan, the Republican nominee. It is also donated $250,000 to the Republican Governors Association, Drazan’s largest donor this year.

Knight’s office did not respond to inquiries from the OPB about his political donations this year. But he responded to The New York Times, telling the paper in a recent interview that he considers himself “an anti-Tina person.”

Copyright 2022 Oregon Public Broadcasting. To learn more, visit Oregon Public Broadcasting.

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October 18 Booklet: Silver https://ohcdphila.org/october-18-booklet-silver/ Tue, 18 Oct 2022 12:20:55 +0000 https://ohcdphila.org/october-18-booklet-silver/ good tuesday morning. Just three weeks before election day. Weather PAJohntown | Mostly cloudy, chance of rain/snow, 42Mansfield | Mostly cloudy, 46Jenkinstown | Sunny, 55 Sound SportsPhillips | TUE vs. San Diego, 8:03 p.m.Flyers (2-0) | MAR vs. Tampa BayPenguins (2-0-1) | Montreal, 3-2 (OT)76ers (0-0) | MAR vs. BostonSyndicate | Conference Semifinals, GAME vs. […]]]>

good tuesday morning. Just three weeks before election day.

Weather PA
Johntown | Mostly cloudy, chance of rain/snow, 42
Mansfield | Mostly cloudy, 46
Jenkinstown | Sunny, 55

Sound Sports
Phillips | TUE vs. San Diego, 8:03 p.m.
Flyers (2-0) | MAR vs. Tampa Bay
Penguins (2-0-1) | Montreal, 3-2 (OT)
76ers (0-0) | MAR vs. Boston
Syndicate | Conference Semifinals, GAME vs. Cincinnati

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Featured story

1. Fetterman has more money in hand than Oz entering the home stretch

With three weeks to go before the controversial US Senate race in Pennsylvania, the Democrat John Fetterman has a considerable advantage over the Republican candidate Mehmet Oz in available campaign funds.

Fetterman has $4.2 million in hand, according to documents filed with the Federal Election Commission, after raising more than $22 million in the third quarter.

Oz has $2.5 million in the bank after racking up $9 million over the same period and contributing $7 million out of his own pocket. (Philadelphia Investigator)

Related

Fetterman receives more and smaller donations. Oz supported by personal loans and outside expenses. “Democratic Senate candidate John Fetterman continues to raise and spend far more money than his Republican counterpart, Mehmet Oz. But spending by outside groups has kept Oz competitive this fall.” (WESA)

Behind Oz’s Crime Attacks, There’s One for Philadelphia’s Suburbs. “An impeachment vote against Larry Krasner, the Philadelphia prosecutor, underscores the power of an issue that works against Lt. Gov. John Fetterman.” (NY Times)

Fetterman’s options: divulge more about his health or let innuendo fill the void. “In the absence of hard facts from medical professionals, they can’t help but make their own amateur assessments based on the clues they can glean from his public appearances. This may not be to Fetterman’s advantage. (TIME)

What to know about the 2022 PA nominees for Senate and Governor. “Here’s everything you need to know about John Fetterman, Mehmet Oz, Josh Shapiro and Doug Mastriano before November 8.” (Philadelphia plaintiff)

Courts

2. GOP goes to court again for PA mail-in ballots

“State and national Republican parties are suing again in Pennsylvania in an effort to prevent certain mail-in ballots — those without the voter’s handwritten date on the return envelope — from being counted in November, when voters elect a new governor and U.S. senator. .
The GOP filing late Sunday went straight to the state Supreme Court, with just three weeks until Election Day. The court does not have to seize the lawsuit. (AP)

Related

Republicans want PA Supreme Court to stop counting undated ballots. “Republicans are fighting for Pennsylvania’s undated ballots directly in the state’s high court, and they’re not waiting until Election Day to do so.” (Philadelphia plaintiff)

How Doug Mastriano rolled out Facebook Live to build his far-right base. “Join us as we tell you how the far-right Pennsylvania state senator used the power of Facebook Live to secure the Republican gubernatorial nomination.” (Philadelphia Investigator Audio)

Position of candidates on rural healthcare, broadband and agriculture. “The winner of Pennsylvania’s 2022 gubernatorial race will have the power to address a wide range of issues affecting an estimated 3.4 million people.” (PA projector)

Giuliani names Trump election deniers as witnesses in legal ethics case. “A list of witnesses filed by Giuliani’s attorneys on Friday included Doug Mastriano, the Republican candidate for governor of Pennsylvania; former Trump campaign attorney Jenna Ellis; and Christina Bobb, a lawyer currently caught up in Trump’s fight with the US Department of Justice over the retention of classified records.” (The Guardian)

American house

3. American House Preview: PA-05

“It will be the incumbent Democrat Mary Gay Scanlon against the Republican challenger David Galluch in PA-05 which includes Delaware and parts of Chester, Montgomery and Philadelphia counties. (AP Policy)

Related

PA-04 Ad Monitoring: Democratic incumbent Madeleine Dean is airing a new ad highlighting how she helped a local manufacturing plant stay in business. Dean is eyeing the position of vice-chairman of the House Democratic Caucus in the next Congress. (News)

PA-07: LehighValleyNews.com to host debate for hotly contested seat. “ThehighValleyNews.com will host a debate between Democratic incumbent Susan Wild and Republican Lisa Scheller on Friday, October 21 at the Univest public media center in Bethlehem.” (LehighValleyNews)

PA-11: Smucker skirts the 2020 election question and links his opponent to “radical leftists”. “In a short televised debate aired Monday afternoon, U.S. Representative Lloyd Smucker declined to directly answer whether Donald Trump had lost the presidency in 2020.” (NL | Lancaster Online)

PA-17 AdWatch: Republican Jeremy Shaffer runs an ad in which his wife guarantees he will “stand up for women’s health care”. (News)

Around the Commonwealth

Voting by mail: an introduction. “For you, dear reader, I’ve signed up for a no-apology mail-in ballot for November to explain how this all works.” (PolicyAP)

AP Mail-In Ballot Requests From Third Party Cause Confusion. “The deadline for registering to vote is within a week, and many groups are trying to register voters. At least one of them raises his eyebrows. (WHTM)

Signs Booby-Trapped With Razor Blades In Upper Makefield Campaign. “A resident trying to remove a political sign on his Upper Makefield property was injured after discovering razor blades had been affixed to the exterior of the poster.” (Bucks County Mail Schedules)

Latino PA Voters Still Democrats as Republicans Struggle to Win Them. “Latino voters are finding their voice in Pennsylvania and being wooed by Democrats and Republicans alike.” (PennLive)

SD 16: Pinsley and Coleman battle for seat long held by Senator Browne. “With the incumbent’s primary loss, voters must choose between distant candidates on issues.” (Lehigh Valley Armchair)

SD 38: North Hills Race reflects stakes in effort to change checks and balances in Harrisburg. “The lawmakers that voters elect to the General Assembly could shape the future of an effort to redefine abortion rights, election oversight and executive power.” (WESA)

Candidates’ Night Canceled Due to GOP Objections to NAACP Moderator. “A nightly Candidates Forum scheduled to take place on Monday, Oct. 24, at the Lebanon Municipal Building Auditorium was canceled after Republican Party candidates in the county refused to attend because an NAACP representative allegedly acted as as co-moderator.” (LebTown)

Faith group hits the road to encourage Pennsylvanians to vote. “The Freedom Express kicks off this week in Philadelphia with plans to travel to more than a dozen counties in Pennsylvania. The bus tour will inspire people to vote in a state that could be crucial for the nationwide midterm elections.” (WHY)

Wolf with an F: Fiscal Policy Report Card Gives PA Low Rating. “In a recent ranking of US governors, Tom Wolf of Pennsylvania ranked at the bottom of the pack – 44th for his fiscal policies.” (The central square)

Opinion

  • That’s why I want the PA vote in the midterm elections. (Mehmet Oz)
  • We are PA clergy. Christian nationalism is not Christian. Here’s why. (Pennsylvania Capital-Star)
  • Learn to forgive and let live. (Lloyd E. Sheaffer)
  • Appalachia relies on Dr. Oz’s prescription (Riley Keaton)
  • What’s wrong with faith, freedom, family and America first? (Robert Russell)
  • The proud boys’ only “idea” is violence. Penn State is wrong to give its leader a platform. (Will Bunch)
  • Proposed amendments to PA state constitutions are dangerous attacks on the system. (Rochelle Kaplan)
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Sensex, Nifty: Factors likely to influence the market next week and key results to watch https://ohcdphila.org/sensex-nifty-factors-likely-to-influence-the-market-next-week-and-key-results-to-watch/ Sun, 16 Oct 2022 12:00:51 +0000 https://ohcdphila.org/sensex-nifty-factors-likely-to-influence-the-market-next-week-and-key-results-to-watch/ The coming week promises to be crucial for the stock market as it will be heavily loaded with macroeconomic data and quarterly earnings announcements by some major companies. On the economic front, market participants will be keeping a close eye on data on deposit growth and bank lending growth which are expected to be released […]]]>

The coming week promises to be crucial for the stock market as it will be heavily loaded with macroeconomic data and quarterly earnings announcements by some major companies. On the economic front, market participants will be keeping a close eye on data on deposit growth and bank lending growth which are expected to be released on October 21.

The value of deposits in India rose 9.5% year-on-year in the fortnight ending September 9. The value of loans in India increased by 16.40% year-on-year in the two weeks to September 2022. On the same day, exchange reserve data will also be available. India’s foreign exchange reserves fell to $532.66 billion on September 30 from $545.65 billion the previous week. Investors will also be keeping an eye out for some important quarterly numbers to be released next week. Among the companies that will release their quarterly results next week are ACC and PVR on October 17; Nestlé India, UltraTech Cement and Indusind Bank on October 19; Asian Paints, Bajaj Finance, Tata Consumer Products, Axis Bank and ITC on October 20; Bajaj Finserv, HDFC Life Insurance Company, JSW Steel, Hindustan Unilever and SBI Life on October 21. ICICI Bank and Kotak Mahindra Bank will announce their quarterly figures on October 22.

Market watcher Naveen Kulkarni, Chief Investment Officer at Axis Securities, said: “Indian markets are following their global counterparts, which have been significantly boosted by short hedging and also helped by market noise regarding rate expectations. ECB’s weaker terminals and the noise about the UK reversal. planned tax reductions. We expect market volatility to continue in the near term and therefore advise investors to stick to investing in good quality companies that are available at a reasonable price.

On the global front, traders will focus on key economic data from the United States (US), starting with the monthly fiscal report on October 17, followed by the Red Book, Industrial Production and the Market Index. NAHB Housing on October 18, Housing Starts on October 19, Philadelphia Fed Manufacturing Index, Initial Jobless Claims, Existing Home Sales on October 20, and finally Baker Hughes Oil Rig Numbers on October 21.

Market veteran S Hariharan, head of institutional equity sales at Emkay Global Financial Services, said: “FII flows to India have turned negative in recent sessions, following a positive start in October. , despite expectations of a strong earnings season , the broader market moved sideways, with DII inflows offsetting FII sell-offs Fears of possible downward revisions to IT stock earnings failed to materialize so far, while banks are expected to post strong profits in the coming weeks.

“The current bout of macro volatility is expected to continue to cap any meaningful upside in indices, despite strong fundamentals. Consumer staples and discretionary names came under some pressure on concerns over margins in the future with the recovery in commodity prices,” he added.

Investment expert Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “REITs continued to sell off in October. According to NSDL data, REITs sold shares worth Rs 7,457 crore till October 15, taking their net sale of shares to Rs 1,76,246 crore so far in CY 2022. A significant trend in selling REITs is that whenever they sell continuously, the sale is significant. in the finance and IT sectors, which make up the bulk of REIT holdings. »

“This trend is evident now too. REITs also sell into oil, gas and metals as these segments will also be impacted by a global economic downturn. The main trigger for selling REITs is the sustained rise in the dollar and expectations that the dollar will continue to remain strong in the current global macroeconomic construction. A reversal in REIT selling will occur when the dollar shows signs of peaking and reversing.”

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Former Philly mayor to lead Treasury’s racial equity committee https://ohcdphila.org/former-philly-mayor-to-lead-treasurys-racial-equity-committee/ Sat, 08 Oct 2022 16:21:26 +0000 https://ohcdphila.org/former-philly-mayor-to-lead-treasurys-racial-equity-committee/ PHILADELPHIA (KYW Newsradio) – Former Philadelphia Mayor Michael Nutter will lead a new committee at the US Treasury Department. The Racial Equity Advisory Committee is charged with finding ways to reduce economic disparities for communities of color. Nutter admits that the Treasury Department may seem like an unlikely agency to pursue racial equity. “Our relationship […]]]>

PHILADELPHIA (KYW Newsradio) – Former Philadelphia Mayor Michael Nutter will lead a new committee at the US Treasury Department. The Racial Equity Advisory Committee is charged with finding ways to reduce economic disparities for communities of color.

Nutter admits that the Treasury Department may seem like an unlikely agency to pursue racial equity.

“Our relationship with the Treasury Department is generally to write a check to the IRS, so they’re not necessarily considered an outward-facing organization,” he said.

Nutter, who is also a professor of urban and public affairs at Columbia University, credits Treasury Secretary Janet Yellen with realizing the department had a role to play in promoting economic equality.

“Access to capital, how the banking sector works and interacts with – or sometimes interferes with – people’s ability to get loans, to start businesses,” he explained.

Nutter said the committee will look at financial inclusion, housing stability, federal supplier diversity, economic development or any other way it finds to reduce barriers to full participation of communities of color in the American economy.

Nutter served nearly 15 years on city council prior to his term as mayor from 2008 to 2016. He and the other 24 committee members have been appointed for two-year terms and will work with the Treasury Department’s Equity Advisor. racial Janis Bowdler.

Featured Image Photo Credit: Frazer Harrison/Getty Images for Airbnb

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Bank for International Settlements Releases Findings of Fed Study on Impact of Fintech Lending on Access to Credit for US Small Businesses https://ohcdphila.org/bank-for-international-settlements-releases-findings-of-fed-study-on-impact-of-fintech-lending-on-access-to-credit-for-us-small-businesses/ Tue, 04 Oct 2022 09:56:43 +0000 https://ohcdphila.org/bank-for-international-settlements-releases-findings-of-fed-study-on-impact-of-fintech-lending-on-access-to-credit-for-us-small-businesses/ Research finds small business fintech platforms have potential to create a more inclusive financial system DENVER – October 3, 2022 – The Bank for International Settlements (BIS) and the Federal Reserve Bank of Philadelphia recently published research analyzing proprietary loan data from Funding Circle, the leading online platform for small business loans, and other fintech […]]]>

Research finds small business fintech platforms have potential to create a more inclusive financial system

DENVER – October 3, 2022 – The Bank for International Settlements (BIS) and the Federal Reserve Bank of Philadelphia recently published research analyzing proprietary loan data from Funding Circle, the leading online platform for small business loans, and other fintech data for small businesses. Data showed that fintech small business lending (SBL) platforms are using alternative data to improve credit scoring and increase access to capital at lower cost for borrowers who are less likely to receive credit from traditional banks .

The study found that, compared to traditional banks, fintech SBL platforms lend more frequently in zip codes with higher unemployment rates and higher bankruptcy filings. Using internal credit scores has also allowed Funding Circle to lend to many business owners who may not have had access to bank loans due to their FICO score, improving access for small business owners. equity-based businesses and offering greater financial inclusion.

During the pandemic, banks have prioritized processing PPP loan applications from existing business customers, leaving small businesses at risk of bankruptcy. Fintech SBL platforms have stepped up to bridge this credit gap by following a peer-to-peer lending strategy and partnering with community banks to reach new customers. These partnerships have allowed smaller banks to band together to create a greater share of PPP lending, accelerating lending to small businesses that did not have existing relationships with banks at the start of the pandemic.

“Small businesses continue to face post-Covid challenges, economic uncertainty and insufficient access to credit,” said Angus Sander, Chief Revenue Officer and Vice President of Products at Funding Circle US. “The results of this study reinforce the importance of fintech small business lending platforms for the current and future health of small businesses in our country. Funding Circle is proud to support and expand access to capital for small businesses across the country.

The results of the study also revealed that the internal credit ratings used by SBL fintech platforms, and more specifically the risk ratings assigned to loans by Funding Circle, were able to predict future loan performance with greater accuracy than the conventional method of credit scoring, leading to a better loan. performance. In addition, the study results confirmed that the information used by Funding Circle to rank loans according to risk is superior to that of risk measures from FICO or VantageScore.

Overall, the findings of this study underscore the critical role that SBL fintech platforms play in supporting small businesses and creating a more inclusive financial environment. Today, the role of SBL fintech lenders is more important than ever as small businesses seek help in dealing with inflation, rising interest rates and market volatility.

As the report notes, “we have demonstrated the potential of what fintech platforms and their use of alternative data could do to move us towards a more inclusive financial system. As collaboration and partnerships grow between traditional banks and fintech companies, they would become more efficient at using borrower data using today’s technology and likely to work together to improve financial inclusion and overall economic performance.

For more information and to learn more about Funding Circle’s solutions, visit www.fundingcircle.com/us.

About the Funding Circle

Funding Circle (LSE: FCH) is the leading online lending platform for small and medium-sized enterprises (“SMEs”). Since its launch in 2010, investors and lenders, including banks, community development financial institutions, specialized finance companies, asset management companies, insurance companies, government-backed entities and funds, have invested approximately $19 billion in more than 130,000 companies worldwide.

For all media inquiries, please contact:

Julia Jaramillopr@fundingcircle.com

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