Inner City Press' Community Reinvestment Reporter

  

     Welcome to Inner City Press’ CRA Report.  Our other Reporters cover the financial services industry, human rights, the Federal Reserve, and other beats.  ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering informationCBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts."  The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters."  See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," City Limits, Oct. 2004.  The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site  Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere.

Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER   BloggingHeads.tv  Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press. 2014: MRL on Beacon Reader  For or with more information, contact us. See, in November 2021, Inner City Press' book "Belt and Roadkill," here

December 4, 2023

PA Merger Partner FNCB Admits Disparities As Link Was Hit by Fair Finance Watch Now Plan

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Dec 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

 In October, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

On November 10, Fair Finance Watch commented on an even more disparate combination, Peoples Security Bank and Trust Company bid to acquire and merge with FNCB Bank, noting that on Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications.   FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations.

  Now the banks have admitted to the FDIC: "FNCB Bank’s preliminary HMDA data from the first three quarters of 2023 reveals a significant decrease in loan volume due to an unexpected and unplanned change in FNCB Bank’s mortgage processing system. In early 2022, FNCB Bank partnered with a third party, Promontory MortgagePath (“PMP”), to provide mortgage fulfillment services. However, in October 2022, PMP  Deputy Regional Director Scott D. Strockoz Federal Deposit Insurance Corporation December 1, 2023 Page 6  unexpectedly announced closure of the company due to the unprecedented and rapid deterioration of the mortgage market. PMP did not provide FNCB Bank with advance notice of its decision. In order to continue to serve the needs of its communities during 2023, FNCB Bank brokered residential mortgage loan applications to a third-party lender pending the establishment of a new processing system. Consequently, FNCB Bank recorded a total of 42 brokered loan applications through September 30, 2023, which resulted in 32 loans originated by its third-party lender partner. Because these brokered loans were not closed in FNCB Bank’s name, the loans are not included in FNCB Bank’s 2023 HMDA data. Accordingly, a review of FNCB Bank’s preliminary 2023 HMDA data will indicate that it did not meet 2022 peer benchmarks for loan originations in MMCTs and loan applications generated in LMI tracts when reviewed in FNCB Bank’s assessment areas (which, for peer comparison, includes only those institutions in its assessment area with an application volume between 50% and 200% of FNCB Bank’s). Due to PMP’s withdrawal from its partnership with FNCB Bank, the following trends are evident based on a total of 45 mortgage applications and 33 originations reported by FNCB Bank as HMDA loans during this period: • Applications from MMCTs were 2.22% of total applications. • Majority-Minority loan originations were 0%." Zero. Watch this site.

If the regulators at the FDIC means what they claim, this application should be denied. Watch this site.

November 27, 2023

CRA Challenged to Burke & Herbert on Summit Is Deemed Protest by FDIC despite Bogus Reply

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 20 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

On November 20, the FDIC overruled Burke & Herbert's position: "
Matthew Lee, Esquire Executive Director Inner City Press/Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee: We received your e-mail dated November 10, 2023, regarding the application for Peoples Security Bank and Trust Company to merge with FNCB Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and we consider it a protest... Any future comments should be sent to the applicant and to this office."

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.  

November 20, 2023

CRA Response by Burke & Herbert on Summit Merger Ignores FDIC Conditioning Linkbank

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 15 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  And that's not even getting into Burke & Herbert's overdraft fee abuses. More on that to follow - more than conditions, this application should be denied.

 In October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

November 13, 2023

Fair lending beat, filed in the Pennsylvania edition: " Fair Finance Watch has been reviewing Peoples Security Bank and Trust Company and FNCB Bank including their 2022 HMDA data not taken into account in any CRA exam and finds it troubling.  In Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications. A referral should be made to the DOJ for fair lending violations.    FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations."

November 6, 2023

Atlantic Union CRA Protested on American National Replies 2.4 Disparities Is Fine

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Nov 4 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National, below.

On October 6, mailed October 11, Atlantic Union's counsel claims that it's fine that Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  Atlantic Union has told the Federal Reserve that's fine.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; again, American Union should be referred by the FRB to the Department of Justice.

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. 

   We'll have more on this.

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October 30, 2023

CRA Challenge to Burke & Herbert Summit Merger After Linkbank Conditioned by FDIC

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 28 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  See also, as to proposed acquirer Burke & Herbert, this "civil action seeking monetary damages, restitution and declaratory relief from Defendant Burke & Herbert Bank & Trust Company (“Burke & Herbert”), arising from the unfair and unconscionable assessment and collection of “overdraft fees” (“OD Fees”) on accounts that were never actually overdrawn. 2. This practice breaches contract promises made in Burke & Herbert’s adhesion contracts. 3. In plain, clear, and simple language, the checking account contract documents discussing OD Fees promise that Burke & Herbert will only charge OD Fees or Non-Sufficient Funds Fees (“NSF Fees”) on transactions where there are insufficient funds to cover them. 4. As happened to Plaintiff, however, Burke & Herbert charges OD Fees even when there are sufficient funds to cover a debit card transaction," citation, etc.

 Earlier in October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

October 23, 2023

Linkbankcorp Bid To Buy Partners Bancorp Conditioned by FDIC Now Linkbank Spins

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 21 – Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

But Link keeps spinning, issuing a press release about these partial approvals without mentioning the condition, and concluding it "remains subject to the approval of the Board of Governors of the Federal Reserve System and other customary closing conditions. LINK anticipates closing the Merger in the fourth quarter of 2023." How do they know?

* * *

   The ABA's Rob Nichols, formerly of the Treasury Department, has attacked the reporting of demographics in small business lending, saying it will be painting “an incomplete and potentially misleading picture of small business lending to underserved groups." Then there are the lawsuit trying to stop any reporting. Because, apparently, no picture is better than a supposedly incomplete one. Mean while the ABA is an investor: the "American Bankers Association, a trade group for U.S. banks, said on Friday that [it] had joined a $30 million investment round in Finxact, a startup." How does that work?

October 16, 2023

   Who can get into banking in the USA? Well, bunq is trying, despite being fined in Benelux for using AI as their anti money laundering screen. And how would that work for fair lending? Watch this site.

October 9, 2023

Link Bank Bid To Buy Partners Bancorp Was Hit by Fair Finance Watch Now Plan Required

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 7 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

October 2, 2023

Deutsche Bank Fined for Greenwashing Scam, Next Should Be Fine for False CRA Claims

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, Sept 25 – Deutsche Bank was sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  On September 25, 2023 Deutsche Bank was belatedly fined $25 million for greenwashing. The SEC said that despite marketing itself as an ESG leader, from August 2018 until late 2021 DWS failed to implement certain provisions of its global ESG integration policy "as it had led clients and investors to believe it would. Investment advisers must ensure that their actions conform to their words," said Sanjay Wadhwa, deputy director of the SEC's division of enforcement and head of its climate and ESG task force.    "Here, DWS advertised that ESG was in its DNA, but, as the SEC's order finds, its investment professionals failed to follow the ESG investment processes that it marketed."

This logic should be applied to false CRA claims like KeyCorp's - and others'....

September 25, 2023

CRA Challenge to Atlantic Union - American National Proposed Merger on Loan Disparities

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Sept 23 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National: 

Dear Chair Powell, Secretary Misback and others in the FRS:  This is a timely first comment on, the Applications of Atlantic Union Bankshares Corporation to acquire American National Bankshares.

  Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  This is disparate, and more disparate both than the aggregate in Virginia, and than American National Bank and Trust.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; American Union should be referred by the FRB to the Department of Justice.

 In Maryland in 2022, American Union denied the applications of African Americans 4.31 times more frequently than those of whites.

In North Carolina in 2022, American Union made 17 loans to whites for every loan to an African American. Again, this is outrageous; American Union should be referred by the FRB to the Department of Justice.    

We also note the issues in the overdraft class action that Atlantic Union settled, but on information and belief did not fully address, in 2021. See, MARTY HINTON, individually and on behalf of all others similarly situated, Plaintiff, v. ATLANTIC UNION BANK, Defendant. Civil Action No. 3:20-cv-651-JAG  (Complaint) and (Order denying Atlantic Union's motion to dismiss)  Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved  

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. 

   We'll have more on this.

September 18, 2023

  Citigroup has been rightly targeted with protest for years (see for example Predatory Bender) - but last week the ongoing lending protest turned environmental, and a Citigroup staffer showed the bank's attitude, pushing and yelling and it seems splashing coffee, video here. More next week, after UNGA...

September 11, 2023

Schwab Moved Bank and CRA Duty to Desert SW After TD Ameritrade Buy, Now Challenge

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 – There are largely non-bank company which buy or charter a bank to serve them, but barely if at all comply with the Community Reinvestment Act.

On September 8, 2023, Fair Finance Watch called out Charles Schwab's two banks, to the Federal Reserve:

On behalf of Fair Finance Watch, this is a timely comment on the CRA performance and plans of Charles Schwab, including as impacted by the TD Ameritrade acquisition.

   That acquisition raised a number of issues adverse for consumers, but there was not FRB comment period.    However, this is a timely comment on the CRA PE of the two Charles Schwab banks, Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB, which have in connection with the acquisition moved their headquarters to Texas, with an amorphous additional service area of "the desert Southwest."  

Significantly, looking at the top 100 banks regulated by the Federal Reserve, Charles Schwab has the lowest ratio of CRA lending and investments as a % of total assets.    It cannot pass its CRA exam, and its CRA plan cannot continue to be accepted or approved, on this basis.  

The FRB should convene a public hearing, and should reach out to groups through Schwab's (actual) service area.   Watch this site.

September 4, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound has More Fed CRA Questions

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Sept 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve.

On September 1, the Fed belated asked: "Describe how Applicant intends to  evaluate whether the products and services provided by the resultant institution will meet the needs  of LMI individuals. Further, if any legacy products or services should change in the future,  describe how Applicant will ensure that the needs of LMI individuals in its AAs continue to be  met. Please provide your response addressed to the undersigned within eight business days of the date of this  letter." Watch this site.

August 28, 2023

Lakeland Bank DOJ Deal Left Disparities in NY So Protest now Fed Asks of DOJ Settlement

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY, Aug 26– When the US Department of Justice sued and immediately settled with Lakeland Bank for fair lending violations, it announced a proposed merger with Provident Bank.

As if to sweep it under the carpet.

And when Fair Finance Watch looked into it, it found that the DOJ settlement did not address in any way the banks' disparities in New York. So on December 1, the FDIC's comment deadline, it filed a protest, with Inner City Press on the FOIA.

Jump cut to March 15, 2023, when Provident's Deputy General Counsel filed a letter with the New York Fed, cc-ing Rodgin Cohen - only on New Jersey, nothing on the disparities in New York.

On August 22, the Fed asked the banks: "Department of Justice Consent Order (“Consent Order”) 1. Provide an update to all action items included in the Consent Order, reflecting those items which have been completed and any other pertinent updates." As of August 26, no response received from these banks...

Watch this site.

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Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.


August 21, 2023

Credit Union Associations Demand Stay of CFPB 1071 Rule As They Also Move to Merge

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, August 14 –  The Texas Bankers Association and ABA managed to finagle a Federal court ruling allowing its and the ABA's members' non-compliance with the Consumer Financial Protection Bureau's small business data collection rules, pending Supreme Court decision on CFPB's structure and funding. Order here.

On August 3, the ABA wrote to demand the CFPB extend the stay to its non-members, here.

On August 11 the two credit union associations wrote it to get a stay - while they themselves try to merger. The letter was signed by NAFCU Vice President of Regulatory Affairs Ann Petros and CUNA Deputy Chief Advocacy Officer and Managing Counsel Alexander Monterrubio.

There will be fightback.

August 14, 2023

Banks Downgraded as Regulators Encourage Mergers But Link Bid To Buy Partners is Litmus