1/15 CountiesIncluded:Bergen,Essex,Middlesex,Monmouth,Morris,Passaic,Union, Burlington,Camden,GloucesterNJ Thisreportincludesdatafrom: 2017HomeMortgageDisclosureAct(HMDA) 2018FFIECSmalBusinessLending June2018FDICBranchSummaryofDeposits Seefinalslidefordefinitionsandmethods.
2/15 Low andmoderate (LMI)Neighborhood Population MiddleandUpper NeighborhoodPopulation 40% 34% 67% 20% WhatistheracialdistributionofLMI neighborhoods? White Black Hispanic Asian OtherRace NativeAmerican Hawaian/PacificIslander 3,319,566 1,114,054 848,637 566,286 136,243 6,195 1,423 Population Neighborhood Total Persons Asian% White% Black% Hispanic % Low and Moderate Middleand Upper 47% 53% 40% 60% 91% 9% 91% 9% 4,502,824 1,474,111 Wheredodifferentracialgroupslive? 5,984,786 People $95,579 MedianFamily DemographicProfile $76,463 LMIThreshold PercentWhite PercentBlack PercentAsian PercentOther PercentHispanic
3/15 Home PurchaseLoans (2015-2017) Homepurchaseloansoriginatedon single-family,owner-occupied propertiesatthecensustractlevel.
4/15 #Loans LoanAmount($000s) TheHomeMortgageDisclosureAct(HMDA)requiresmost lenderstoreportdetailsaboutthemortgageapplications thattheytake.thisdataisfrom the2015-2017hmda dataset. HomePurchase 40 13,859 40 20% HomePurchase Originated bylender HomeImprovement 63 6,539 Refinance 95 24,263 95 48% Refinance 63 32% HomeImprovement
5/15 100% 90% 10(12%) Denied 24,616(11%) Denied 80% 47,589(20%) DidNotClose % oftotalnumberofrecords 70% 60% 50% 40% 30% 20% 31(38%) DidNotClose 40(49%) Originated 160,051(69%) Originated Outcomesof2015-2017LoanApplicationsreportedby (comparedwiththerestofthelendersinthemarket) Lenderscanoriginatetheirownloansorpurchaseloansfrom correspondentlendersorothersources.applicationscanalsobe deniedorfailtocloseforanumberofreasons. 10% 0% OtherLenders
6/15 Neighborhoodandborrowerraceof2015-2017 originationsmadeby (comparedwithalotherlenders) Homepurchaselendingiscomparedbyraceofthe borrowerandthemajorityraceoftheneighborhood. Incaseswheretheborrowerdidnotindicatearaceor ethnicity,andthelenderdidnotcolectit,theloanis inlcudedwithwhiteborrowers. Neighborhood Race BorrowerRace #Loans % Loans OtherLenders #Loans % Loans WhiteMajority White Asian Hispanic NativeAmerican HawaianorPac. Black Total Minority Majority Hispanic White NativeAmerican HawaianorPac. Black Asian Total 98% 3% 8% 88% 39 1 3 35 78% 3% 0% 0% 5% 6% 64% 179,104 5,974 322 215 11,492 14,622 146,479 3% 3% 1 1 22% 3% 3% 0% 0% 11% 5% 50,120 6,623 7,201 90 82 25,116 11,008
7/15 2015-2017LoanApplicationOutcomesbyRace Bankreportednoapplications from ablackhomepurchaseapplicantduringanyof thethreeyearsreviewedforthisreport. Originated Denied DidNotClose GrandTotal Asian White Hispanic OtherLenders Asian Black NativeAmerican White Hawaianor PacificIslander Hispanic 4 73 4 2 28 1 10 2 35 3 33,496 597 215,463 485 21,440 29,955 6,838 119 29,878 116 4,843 5,795 4,156 66 13,985 72 3,422 2,915 19,806 364 108,850 280 11,516 19,235 DenialDisparitybyRace
8/15 Neighborhoodandborrowerincomeof2015-2017 homepurchaseloansmadeby (comparedwithalotherlenders) Homepurchaselendingiscomparedbyincomeofthe borrowerandthemedianfamilyincomeofthe neighborhood. Neighborhood Borrower #Loans % Loans OtherLenders #Loans % Loans MiddleandUpper Neighborhoods MiddleorUpper Borrower LMIBorrower Total Low and Moderate Neighborhoods MiddleorUpper Borrower LMIBorrower Total 100% 18% 83% 40 7 33 87% 13% 74% 200,410 30,847 169,563 13% 5% 7% 28,814 12,020 16,794
9/15 OtherLenders 100% 90% 80% % oftotalnumberofrecords 70% 60% 50% 40% 30% 40(100%) Conventional 71,431(75%) Conventional 3,177(87%) Conventional 69,643(54%) Conventional 53,829(41%) FHA Typesof2015-2017homepurchaseloansmadeby (comparedwithalotherlenders) Increasingly,banksarefocusedonmakingconventional loanasopposedtofhaorvainsuredloans.lmiand minorityborrowersarereliantuponfhaandvalending formostoftheirhomepurchases.thereare conventionalproductsofferedbybothfanniemaeand FreddieMacthatoffertermssimilartoFHAlending. 20% 10% 0% 20,642(22%) FHA 393(11%) VA LoanType Conventional FHA RHS Bank Bank CreditUnion Non-bank VA
10/15 BranchLocations Branchlocationshavestrongimpact onbusinesslendingandtheshareof residentsthatareun-banked. Servicetype11(brickandmortar) and12(retail)locationsonly
11/15 WelsFargo Valey National TDBank PNCBank JPMorgan Chase Bankof America Bank 12Branches WelsFargo PNCBank TDBank BankofAmerica JPMorganChase ValeyNationalBank SantanderBank InvestorsBank M&TBank ProvidentBank $4,754,443 $5,691,899 $12,131,992 $7,523,683 $11,550,431 $17,590,196 $26,626,783 $29,685,783 $21,832,515 $28,991,676 55 68 87 92 119 150 170 171 188 193 AlBranches Deposits($000s) Bank $792,621 12 BranchCount (asofjune2018comparedwiththerestofthemarket)
12/15 BranchCount (asofjune2018comparedwiththerestofthemarket) NJ Bergen Burlington Camden Essex Gloucester Middlesex Monmouth Morris Passaic Union 179 119 206 251 258 75 228 120 114 428 4 3 5 56 26 13 17 32 16 90 25 20 35 0 0 0 81 44 28 23 155 3 92 25 11 145 0 1 0 AlBranches OtherBanks LMIBranches OtherBanks MinorityBranches OtherBanks 1,978 12 17% 0% 31% 8% WelsFargo National TDBank PNCBank JPMorgan Chase Bankof America Bank 12Branches
13/15 Low andmoderate Neighborhoods MiddleandUpper Neighborhoods #Loans % Loans #Loans % Loans 2015-2017BusinessLendingby (comparedwithalotherlenders) 852 8% 10,356 92% Section1071oftheDodd-FrankActof2010directedthe ConsumerFinanceProtectionBureau(CFPB)tocolect detaileddataonbusinesslending. Todate,thishasnotbeendone.Inthemeantime,under,the CRAbanksreportlimiteddataonbusinessloansincluding theincomeoftheneighborhoodwheretheloanismade. OtherLenders 488,783 13% 3,231,533 87% Thereisastrongcorrelationbetweenbusinesslendingand bankbranchlocations,therelationshipsthatlocalbusiness ownersbuildwithbankbranchstaff areakeyelementin makebuisnessloans.
14/15 Low andmoderate Neighborhoods MiddleandUpper Neighborhoods #Smal BusinessLoans % Smal BusinessLoans #Smal BusinessLoans % Smal BusinessLoans 528 9% 5,559 91% 2015-2017SmalBusinessLendingmadeby (comparedwithalotherlenders) Smalbusinessloansarethosebusinessloansmadeto businessesthatreportlessthan$1milionayearinrevenue. SmalbusinessloansareacriticalsourceoffundsforLMI neighborhoodsandentreprenuers.thesesmalloansand creditcardshelpstartnew businessesandexpandsmal companies. OtherLenders 211,057 13% 1,371,766 87%
15/15 Thankyou AlNCRCMembersreceivesupportfrom NCRCResearch,askyourorganizeraboutthisbenefit today. Definitions Low tomoderate(lmi)apersonorborrower(lmib)orcensustract(lmit)withafamilyincomelessthan80% ofthemedianfamilyincomeforthemsa. Minority-Anypersonotherthananon-Hispanicwhitethatisaborrower(MINB)oratractwithmorethan50% minorityresidents(mint). Application-amortgageloanapplication. Origination-amortgageloanthatresultsinahomepurchase. CommunityReinvestmentAct(CRA)-Law thatrequiresbankstoservicethecreditneedsofthecommunitiestheyoperateinandreportdataonsmalbusinesslending. HomeMortgageDisclosureAct(HMDA)-Law thatrequireslenderstoreportdetailsaboutmortgageloanapplications. DepositMarketShare-Shareofcashdepositsheldbyaparticularbank. BankBranch-Anybrickandmortarlocationwhereapersoncanmakeadeposittoateler. DataSources Mortgagelendingistakenfrom thecfpbwebsiteandisfor2015-2017unlessotherwiseindicated.homepurchaseloanstoowneroccupantsonsinglefamilyhomesareused.actioncode1isconsidered anoriginationandactioncodes1-5areconsidered applications.purchasedloansandpreapprovalsarenotincludedunlessspecificalyindicated. CensusdataforHMDAisdrawnfrom theffieccensusfilefor2017andusesthe2009 2015AmericanCommunitySurveydatafrom theuscensus. Smalbusinesslendingistakenfrom theffiecwebsiteandusestheirdefinitionsofsmalbusiness.smalbusinessdataisfrom 2017. Personofcolororminorityreferstoanypersonthatisnotanon-Hispanicwhite.Ininstanceswhereraceismissingthatborrowerisconsideredtobeanon-Hispanicwhite. BranchdataiscurrentasofJune2018andincludesservicetype11and12only.