Community Affairs:
Community Affairs Publications

• Community Affairs' OCC Update
• Community Affairs Fact Sheets
• Community Developments Insights
• Community Developments Investments
• Community Developments Newsletter
• Other Community Affairs Publications
• Article Archive

COMMUNITY AFFAIRS' OCC UPDATE

May 2008
January 2008
June 2007
March 2007
October 2006
June 2006
January 2006
August 2005

COMMUNITY AFFAIRS FACT SHEETS

• Bank-Owned Community Development Corporations (PDF) Community Developments Fact Sheet
• CRA: Community Development Loans, Investments and Services (PDF) Community Developments Fact Sheet
• Federal Home Loan Bank: Programs for Community Investments (PDF) Community Developments Fact Sheet
• Financial Literacy (PDF) Community Developments Fact Sheet
• Individual Development Accounts (PDF) Community Developments Fact Sheet
• Low Income Housing Tax Credits (PDF) Community Developments Fact Sheet
• Multi-Bank Partnerships for Community Development Financing (PDF) Community Developments Fact Sheet
• New Markets Tax Credits (PDF) Community Developments Fact Sheet
• Part 24 Community Development Investments (PDF) Community Developments Fact Sheet
• Part 24 Filings on e-Corp (PDF) Community Developments Fact Sheet
• Rebuilding the Gulf Coast: How Banks Can Help (PDF) Community Developments Fact Sheet
• Small Business Administration Programs (PDF) Community Developments Fact Sheet
• USDA Rural Housing Finance Programs (PDF) Community Developments Fact Sheet

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COMMUNITY DEVELOPMENTS INSIGHTS

Community Affairs produces Community Developments Insights papers on products, services, and initiatives that are relevant to community development and consumer banking activities. Topics selected for Insights center around products or initiatives of interest to banks considering growing or expanding their lending, investments, and services aimed at traditionally-underserved market segments. Community Developments Insights discuss how selected products or initiatives operate, why they might be of interest to other banks, and associated risks or regulatory considerations. While Community Development Insights may draw conclusions, they differ from OCC's advisory letters, bulletins, or regulations in that they do not reflect the agency's policy and should not be considered guidance to bankers.

Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for Banks (NR-2008-10) (PDF 1.1MB) (February 2008) This edition of Community Developments Insights describes how LIHTCs are used to develop affordable rental housing and how banks can benefit from investing in LIHTC-financed projects. It describes the two approaches for investing in LIHTCs - direct investments in individual affordable housing projects and fund investments that have multiple projects managed by third parties. The report outlines risks and regulatory considerations of LIHTC investments and describes how these investments would be considered under the Community Reinvestment Act (CRA).

Understanding Employer Assisted Mortgage Programs: A Primer for National Banks (PDF 474KB) (August 2007) Abstract: This edition of Community Development Insights examines the primary risks and regulatory considerations associated with employer assisted mortgages. The report illustrates how lenders can implement their own successful employer assisted programs or work with other employers to create such initiatives. The paper also discusses how banks participating in these programs may meet their Community Reinvestment Act obligations by providing mortgages to low- or moderate-income homebuyers or purchasers of properties in low- or moderate- income neighborhoods.

Foreclosure Prevention: Improving Contact with Borrowers (PDF 295KB) (June 2007) Abstract: This edition of Insights highlights best practices loan servicers are using to improve their contact rate with delinquent mortgage borrowers. These best practices include, but are not limited to, the use of sophisticated scoring models, customer friendly approaches, partnerships with nonprofit credit counselors, and web-based information on workout options.

New Markets Tax Credits: Unlocking Investment Potential (PDF 380KB) (February 2007) Abstract: This edition of Insights examines the primary risks and regulatory considerations associated with New Market Tax Credits (NMTCs) and discusses the ways in which bank investors have structured and managed these credits effectively. Banks have been active participants in the NMTC program because of the ability to generate competitive economic returns, and the opportunities they present for positive CRA consideration.
Reaching Minority Markets: Community Bank Strategies (PDF 293KB)  (November 2006) Abstract: The growth of minority populations and projected increases in their buying power provide significant opportunities for retail growth by financial institutions. This edition of Insights examines selected strategies being used by community banks to target specific minority markets in the United States, the impact of these strategies on bringing unbanked consumers into the banking system, and some risks and regulatory considerations associated with each strategy.

Commercial Lending in Indian Country: Potential Opportunities in an Emerging Market (PDF 243KB) (March 2006) Abstract: This edition of Insights examines the major challenges and constraints that have inhibited larger scale Native American financing efforts by banks and other parties. The report discusses several federal programs, including loan guarantee, insurance, and interest subsidy programs that have been important in managing risks in tribal commercial and business development ventures. The analysis also describes specific approaches used by bankers involved in this market to accommodate these unique business and legal barriers.

SBA 504 Loan Program: Small Businesses' Window to Wall Street (PDF 290KB) (February 2006) Abstract: This edition of Insights examines the Small Business Administration (SBA) 504 loan program, a collaborative lending product through which banks team up with certified development companies (CDCs) to make loans for major fixed assets and promote economic development. Typically, the bank portion consists of a loan secured by a first lien, covering 50 percent of the project cost. Overall, the 504 product allows small businesses to obtain 90 percent longer term financing for fixed assets, thereby enabling the businesses to retain needed capital for expansion. These loans can help banks retain and attract customers, assist in risk management, and earn fee and interest income.

Payroll Cards: An Innovative Product for Reaching the Unbanked and Underbanked (PDF 248KB) (June 2005) Abstract: This edition of Insights examines the growth of payroll cards and their potential for use by national banks to attract the nearly 10 million unbanked households into the financial mainstream. Some employers offer this prepaid debit card to employees in place of a check to distribute wages. Employers can lower internal costs by using the card since it enables them to avoid the costs of producing and distributing checks, as well as dealing with lost and stolen checks. Payroll cards can serve as an introductory financial product for consumers who do not want to manage a checking account, but want the combined benefits of direct deposit and a nationally branded debit card.

Individual Development Accounts: An Asset Building Product for Lower-Income Consumers (PDF 581KB) (February 2005) Abstract: This edition of Insights examines Individual Development Accounts (IDAs) as a tool for banks and other financial institutions to encourage lower-income persons and families to save money and thus build assets for particular financial goals. It describes why banks offer IDAs, shows how banks are involved with IDAs, and addresses barriers to the growth of IDA products. The information presented here was obtained from a variety of sources including financial institutions, IDA policymakers, nonprofit service providers, and program funders. Several hundred banks participate in IDA programs which can receive positive consideration under the Community Reinvestment Act. Appendix 1 of the Insights paper contains a resource guide for banks considering participation in an IDA program.

Remittances: A Gateway to Banking for Unbanked Immigrants (PDF 229KB) (September 2004) Abstract: This edition of Insights examines the role of banks in providing money transfer services and reviews the goals of banks in offering these products. It describes how banks can use these products to attract unbanked immigrants into the banking system and become providers of a variety of financial products and services that immigrants can use. It addresses some of the key risks and regulatory issues presented by bank involvement in these products, as well as structural and cultural barriers to the growth of bank remittance products. Although immigrants in the U.S. remit funds to countries throughout the world, this analysis addresses the Mexican market because it is the largest and where banks have focused most of their attention.

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COMMUNITY DEVELOPMENTS INVESTMENTS E-ZINE

Community Developments Investments focuses on community development investment topics of interest to bankers. The e-zine shares the perspective of bankers and community development practitioners on topics that illustrate the creative side of community development investing and identifies common features that can be applied to other investments. It also includes a discussion of investment opportunities in the OCC Districts and provides hotlinks to resources on community development investment topics, including the OCC's public welfare investment authority (12 CFR 24).

Community Development Venture Capital: A Catalyst for Double-Bottom Line Results (Spring 2007) focuses on community development venture capital (CDVC) including descriptions of investments and due diligence advice.

2005 CRA Revisions: How Banks and Examiners Are Implementing the New Rules (Summer 2006) discusses changes to CRA regulations promulgated in 2005, including the creation of a new Intermediate Small Bank test and an expanded definition of community development. Click here for PDF version (PDF 922KB)

Investing in Low-Income Housing Tax Credits: A Sound Opportunity for Community Banks (Spring 2006) describes the fundamentals of low-income housing tax credits, with a particular focus on topics of interest to community bankers new to this product. Click here for PDF version (PDF 6.7MB)

Investment Intermediaries: Helping Banks Achieve a Double Bottom Line (Summer 2005) provides a look at two community development finance providers. These investment intermediaries offer banks the ability to earn a double bottom line return - of both economic earnings for the investing bank and social gain for the communities they serve. Click here for PDF version (PDF 6.3MB)

Growing Markets with Bank-Owned Community Development Corporations (Winter 2004/2005) provides a guide for creating and managing bank subsidiary CDCs. It also contains case studies of bank CDCs as well as a discussion of how these entities are treated for CRA purposes. Click here for PDF version (PDF 1.9MB)

New Markets Tax Credits -- Bridging Financing Gaps (Summer 2004) focuses on how banks are leveraging these tax credits to revitalize economically distressed communities. Click here for PDF version (PDF 6MB)

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COMMUNITY DEVELOPMENTS NEWSLETTER

Community Developments shares information on timely community development issues pertinent to financial institutions, major Federal initiatives, and regulatory policies approved by the OCC. It provides timely information about innovative national bank community development lending and investing practices.



Preservation of Affordable Multifamily Housing (Spring 2008) features an overview of the challenges facing the nation's affordable multifamily rental housing inventory and describes how a variety of public, private, and nonprofit initiatives have addressed these challenges. This issue also highlights the specific activities and investments of selected national banks, nonprofit organizations, and state and local government agencies in supporting the preservation of affordable multifamily rental housing. Click here for PDF version. (PDF 2.0MB)


Minority-Owned Banks - Making a Difference in Their Communities (Winter 2006-2007) focuses on minority-owned institutions, the strategies they employ to serve their markets, and how majority-owned institutions can partner with minority-owned banks and receive consideration under the Community Reinvestment Act. Click here for PDF version (PDF 1.3MB)


Homeownership: Preserving the American Dream (Spring 2006) focuses on a number of ways banks can help to reduce foreclosures through partnering with non-profits and successfully implementing early intervention strategies with troubled borrowers. Click here for PDF version (PDF 2MB)


Using the New HMDA Data to Expand Home Mortgage Lending Opportunities (Summer 2005) includes articles on the changes to the Home Mortgage Disclosure Act, OCC's recently-issued residential mortgage lending standards, and mortgage finance partnerships between banks and housing counseling organizations. Click here for PDF version (PDF 1MB)


The Power of Plastic: How Banks are Using Technology to Reach the Unbanked (Fall 2004) focuses on how depository institutions are using stored value cards, the Internet, and other technology-driven products to provide financial services to the 10 million unbanked households in the United States. Click here for PDF version (PDF 1.5MB)


Strengthening America: The Small Business Advantage (Winter 2003) looks at what banks and other financial institutions are doing to support small businesses. Click here for PDF version (PDF 999KB)



A Place to Call Home: Financing Housing in Rural America (PDF) (Spring 2003) (Text Version) (PDF) focuses on the vitally important role that banks play in stimulating and supporting rural affordable housing initiatives. OnLine News Articles:

Helping Rural Customers Reach HomeatLast (PDF 681KB) Bank Roles Loom Large in Developing Rural Rental Housing  (PDF 580KB)




Shaping the Future of Rural America (PDF) (Fall 2002) (Text Version) (PDF) Banks and Economic Development" highlights the key role banks can play in strengthening rural economies. OnLine News Articles:

Investing in Rural Empowerment Zones and Enterprise Communities (PDF 883KB) Using USDA's Community Facilities Loan Guaranty Program (PDF 524KB) Rural Community Development Banking Resource Directory




Community Development Financial Institutions and CD Banks - Natural Partners for Traditional Lenders (PDF 541KB) (Summer 2002) (Text Version) (PDF) OnLine News Articles:

Community Development Credit Unions (PDF) Southern Development Bancorporation on Rural CD Banks (PDF) National Community Investment Fund (PDF) National Community Capital Association (PDF)




Banking in Indian Country: Challenges and Opportunities (PDF 246KB) (Fall 2001) OnLine News Articles:

Indian Tax Credit Funds (PDF) HUD's Section 184 Program (PDF) Woodlands National Bank: Running a Tribally-Owned Bank (PDF) Bank One: Partnering with the White Mountain Apache (PDF)




Growing Diverse Banking Markets (PDF 1.2MB) (Summer 2001) OnLine News Articles:

New Community Corporation-Diversity in Action (PDF) Serving the Latino Community (PDF) Freddie Mac on Greenlining Homeownership (PDF)



Focus on Part 24 Community Development Investments (PDF 1.3MB) (Winter 2001)


Focus on Retail Financial Services to Underserved Communities (PDF 420KB) (Fall 2000)


Focus on Affordable Multifamily Housing (PDF 235KB) (Spring 2000)


Focus on Small Business (PDF 1.3MB) (Fall 1999)

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OTHER COMMUNITY AFFAIRS PUBLICATIONS

A Guide to Mortgage Lending in Indian Country (PDF) (2002). This guide presents some of the issues involved in mortgage lending in Indian Country. It discusses such topics as Indian lands, trust lands, tribal sovereignty, and civil jurisdiction. A list of government resources is also included.


Community Development: A Profitable Marketing Opportunity (1997). This publication features papers from a diverse group of experts in community development lending and investing. The information is offered to encourage readers to continue this work and these initiatives, and to promote additional activities and interest in community development finance. (Available only in print, contact the Community Affairs Department)


Community Development Finance: Tools and Techniques for National Banks (1996). This publication describes many of the financing methods used by banks and other financial institutions to help facilitate economic development and community revitalization. This is a resource guide for national banks and others seeking information.


Directory of 2002 National Bank Community Development Investments (PDF 1.5MB) discusses recent trends in national bank community development investments and provides brief summaries of Part 24 investments made by national banks and their community development partners in 2002. It also provides a summary listing of national and regional funds in which banks invested in 2002 and geographic listings of investments with contact information. The 2001 (PDF 1.3MB), 2000 (PDF 1.8MB), 1999 (PDF 396KB) , 1998 (PDF 691KB) , 1997 (PDF 386KB) editions of the directory are available online. Please contact the Community Affairs Department if you would like to obtain the 1994, 1995 or 1996 editions.


Effective Strategies for Community Development Finance (PDF 2.6MB) (2000). This is a two-volume set that provides information on practices that have helped selected national banks engage in community development finance, as well as a listing of approximately 145 resources to assist bankers and their community partners in obtaining information about community development programs and tools on how to expand CD lending. Community Development Resource Guide (PDF 948KB).


Providing Financial Services to Native Americans in Indian Country (PDF 1.6MB) (1997). This booklet provides examples of how several banks provide financial services in Indian Country.


The Single-Family Affordable Housing Market: Trends and Innovations (PDF 227KB). This publication captures the presentations given at the July 1997 Affordable Housing Symposium sponsored by the OCC. Topics include the state of the affordable mortgage lending market, affordable mortgage underwriting standards, risk management, risk mitigation strategies, and the future of this segment of the housing industry. The 104-page publication has insights for banks with a long history of affordable housing lending, as well as for those with an eager interest in this expanding market.


Small Business Banking Issues: A National Forum Sponsored by the Office of the Comptroller of the Currency (PDF 322KB) (1998) This publication describes successful programs, techniques, and strategies relevant to small business banking that can be replicated by bankers and small business owners in their own communities.

ARTICLE ARCHIVE

The Community Developments Article Archive provides easy access to every community development article published by the OCC. Articles are sorted by category and by state. Visit the article archive.

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