COMMUNITY AFFAIRS' OCC UPDATE
OCC Update is an electronic newsletter that provides information about the
Office of the Comptroller of the Currency's work in the area of fair treatment
and fair access to financial services for all Americans. It provides
information about national bank involvement in community development lending,
investments and services, small business financing, financial literacy, access
to financial services, consumer protection, CRA, HMDA and other consumer
compliance issues.
COMMUNITY AFFAIRS FACT SHEETS
Community Affairs produces Fact Sheets on innovative products and services,
investment vehicles, and Federal government programs and initiatives that are
relevant to community development and consumer banking activities. The products
serve as a resource for bankers, community development practioners, and bank
examiners.
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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)
(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 (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 (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 (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
(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
(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
(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
(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
(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
(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).
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
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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.
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OTHER COMMUNITY AFFAIRS PUBLICATIONS
A Guide to Mortgage Lending in Indian
Country
(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
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 ,
2000 ,
1999 ,
1998 ,
1997
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.
The Single-Family Affordable Housing Market:
Trends and Innovations .
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.
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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