Describes the benefits of collaboration between CDFIs and mainstream financial institutions; regulatory and legislative opportunities for building and strengthening such partnerships, and an analysis of the types of relationships that have evolved in recent years. Detailed case studies describe how creative partnerships have developed between a variety of CDFIs and conventional lenders.

Analyzes patterns of small business lending in the Chicago region. Notes patterns in lending related to geography and race. Highlights importance of branch networks for small business lending and discusses credit card banking.

Shows that community development (CD) banks far outperform regular banks in serving low-income and minority communities. Includes extensive data analysis which describes the performance of banks in Chicago. Demonstrates that a considerably higher percent of CD banks' home loans go to lower-income neighborhoods and borrowers than is true for all other lenders. The same pattern is repeated for loans to minority neighborhoods and borrowers.

The most recently available home mortgage data for the Chicago region show that refinancing loans were not uniformly accessible to all residents.  As a result, many borrowers, particularly African-Americans, have not benefited from the refinancing boom of the 1990's.

Explains the importance of small business development to modest-income urban neighborhoods, including discussions of access-to-credit problems and the role of CRA and economic development finance in these markets. Provides a framework for developing strategies for addressing small business financing needs in targeted markets.

Geoff Smith

 

This analysis of Chicago area mortgage lending is intended as a companion piece to Woodstock Institute’s 2004 Chicago Area Community Lending Fact Book. It is meant to help put the mortgage lending data found in the Fact Book in a broader regional context.  The first section analyzes regional trends in home purchase lending with a focus on changes in home buying patterns between 1999 and 2004. The second section focuses on patterns of high cost lending and foreclosures in the region.

A guide for congregations interested in understanding their community investment options, with descriptions of financial and management aspects, as well as social benefits, of different investment options. Examples provided.