News
Federal Reserve Governor Bowman:
"Today I will begin by discussing some of the research around community banks and the role they play in the U.S. banking system. I will then discuss how this research can inform policy, including by helping us be more sensitive to the unintended consequences of reform, and discuss how this perspective can be applied to the evaluation of bank mergers and acquisitions. Finally, I will mention a few additional areas where I think research could be valuable as an input to the rulemaking process."
A brief history of the early days of the New Markets Tax Credit:
"In early 2003, Bob Rapoza got a call from the Treasury Department.
The first round of new markets tax credit (NMTC) allocations–$2.5 billion worth–would soon be announced by the Community Development Financial Institutions (CDFI) Fund and Rapoza was head of the fledgling New Markets Tax Credit Coalition (NMTCC)."
"The number of pending home sales fell more than 7% between July and August, according to the National Association of Realtors. That drop was bigger than analysts had expected and the NAR says it was largely due to rising mortgage rates.
'While plenty of people want mortgages right now, rising rates restrict what they can afford,' said Dominik Mjartan, CEO of Optus Bank in South Carolina."
"Today, the Consumer Financial Protection Bureau (CFPB) released its annual report on residential mortgage lending activity and trends. In 2022, mortgage applications and originations declined markedly from the prior year, while rates, fees, discount points, and other costs increased. Overall affordability declined significantly, with borrowers spending more of their income on mortgage payments and lenders more often denying applications for insufficient income."
"WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced it is beginning a rulemaking process to remove medical bills from Americans' credit reports. The CFPB outlined proposals under consideration that would help families financially recover from medical crises, stop debt collectors from coercing people into paying bills they may not even owe, and ensure that creditors are not relying on data that is often plagued with inaccuracies and mistakes."
"On September 19th, the Consumer Financial Protection Bureau (CFPB) issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models. The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers. This means that creditors cannot simply use CFPB sample adverse action forms and checklists if they do not reflect the actual reason for the denial of credit or a change of credit conditions. This requirement is especially important with the growth of advanced algorithms and personal consumer data in credit underwriting. Explaining the reasons for adverse actions help improve consumers' chances for future credit, and protect consumers from illegal discrimination."
"In January 2022, Kenya Davenport accepted a position with Southern Bancorp to become its new chief of staff and work alongside a CEO, Darrin Williams, who had become a prominent mentor in her life, and create a platform for equality within the financial landscape.
'We've just been vigorously working every day to put our stamp on finally resolving the racial wealth gap,' Davenport said. 'That's our task every day, and we are fighting to make it a more level playing field for everyone in financial services and the financial industry.'"
"Thanks to an SBA loan through CDBA member Ponce Bank, Daniel Garcia, owner of the Caribbean food service company Salsa Caterers and Special Events, acquired an industrial building in the Bronx to expand his business after growing during the pandemic. Part of what made this acquisition successful was the shared sense of community between Ponce Bank and Salsa Caterers. 'I've met the president of the bank,' Garcia says. 'I can call a person who cares, who's from the community, who knew my history, knew my character, and advocated for us. You can't buy that.'"
"Congress is facing a perilous return from August recess with just weeks to pass a stopgap spending bill and serious differences between the Senate and House on overall fiscal 2024 spending levels and priorities. The fiscal year wraps up on Sept. 30, and Congress traditionally passes a short-term continuing resolution so it has more time to work on a bipartisan, bicameral agreement on the 12 annual spending bills.
The Senate has been writing its fiscal 2024 appropriations bills to the levels laid out in the debt limit law (PL 118-5) negotiated by President Joe Biden and Speaker Kevin McCarthy, R-Calif., earlier this summer, though with some extra emergency funds on top. The House, however, wrote its bills below the nondefense cap set by the debt deal, setting the stage for challenging endgame appropriations negotiations."
"Even though more students feel priced out of college entirely, there are efforts to improve access to higher education that seem to be working. In 2011, San Francisco made headlines when it became the first city in the nation to kick off a college savings account with $50 for every child entering kindergarten in the public school system. Now those students are about to enter college."