In between, non-profits I worked as a community development
specialist for Bank of NY. The Community Reinvestment Act is a
federal law that was enacted in 1977 to prevent redlining. Every
bank must make loans in areas where they accept deposits. Most
lenders have very large reinvestment areas. BNY's started in
Newburgh, NY and went all the way to Wilmington, DE. CRA works by
looking at two factors - the loans to low/moderate income people (low
in Monmouth is an income under $40,600 while moderate is $64,960 on
up to 100% of median at the $81K #) and the other factor is loans
located in a low/moderate income census tract. Bankers love to speak
in acronyms so they call that LMI. The only part of Asbury Park that
is not an LMI tract is the northwest corner by Wanamassa. It is not
the East side or anywhere near the ocean. I've worked in AP for 15
years and that area has never been an LMI. The rest has always been
one. That might change with the 2010 census. We'll see. CRA
ratings for every bank are available online at
http://www.ffiec.gov/craratings/default.aspx. Lenders go out of
their way to make loans in areas where their numbers are lacking.
They have entire community development divisions, but most
concentrate their NJ efforts in Newark and Camden. BNY, may it rest
in peace, was quite aggressive here and we offered a discounted rate
on our mortgages to the entire city even the NW. That was probably
so we could boost our rating for the Chase sell.
Since, I live CRA everyday I tend to rattle on about it. I will help
anyone who wants it though. I would like to avoid AP being slammed
with foreclosures in the wake of the ARM debacle. FHA has given us
some tools and our lending partners are willing to work with me. CRA
loans usually require the same credit underwriting as any other loan,
but are more flexible in ratios. I don't want to rattle into
speaking mortgagese. Just know that there are loans out there and
help if it's needed.
BTW, I agree about African American business on Springwood. Any
qualified volunteers out there that would like to conduct a seminar
for people interested in starting their own business? I would gladly
organize it and bring in lenders to discuss small business loans to
women and minorities. Another CRA product better known as a SWM
(swim) loan.
Jennifer
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