In recognition of its 34 years of work to increase access to economic and financial resources in lower-income and minority communities, Woodstock Institute was a recipient of the 2007 John D. and Catherine T. MacArthur Foundation Award for Creative and Effective Organizations. The award includes a major grant to increase institutional capacity and ensure the long-term stability of Woodstock Institute. The seven awardees included: Action Health Incorporated, a reproductive rights organization in Nigeria, the Institute for Security and Democracy, a policy reform organization in Mexico City, the Institute for Law and Public Policy, a group that champions constitutional and legal reform in Russia, and another Chicago organization, the prize winning documentary film organization, Kartemquin Films.
Thousands of taxpayers loaded up on debt early this year using a new variation of tax refund loan available in mid-November often called a “holiday loan.” Based on a taxpayers projected tax and calculated using tax information printed on their pay stub, these pre-filing season refund loans cost low-income taxpayers millions and often lock them into additional tax refund loans or other unnecessary and expensive tax preparation products. But there is good news––all three national banks, which funded the loans offered by storefront tax preparers such as H&R Block and Jackson Hewitt, announced that they would not offer these types of loans next tax season.
Federal regulators examine how the largest banks deliver financial services to communities throughout the Chicago region incompletely and inconsistently says a new report by Woodstock Institute research staff. Looking at recent bank examinations, Woodstock Institute researchers tried to determine how federal examiners evaluated the distribution of bank branches and the quality and relative affordability of basic financial services, such as checking accounts.
Credit unions can offer sustainable, affordable short term credit at a fraction of the cost of traditional payday lenders, says a recent report by Marva Williams, until recently Woodstock Institute senior vice president.
The recently exposed problems in the subprime lending segment of the mortgage market should come as no surprise. Too many lenders offered too many loans with payments that seemed affordable during a brief introductory period, but skyrocketed shortly thereafter--leaving borrowers in foreclosure and communities devastated.
