December 15, 2006: Countrywide Seeks New Regulator
Countrywide, one of the largest financial services companies in the world and a major lender of high-cost home mortgage loans, recently announced that it would be seeking a new regulator. Currently, Countrywide Bank with nearly $100 billion in assets, is a national bank regulated by the Office of the Comptroller of the Currency (OCC). Countrywide Financial, which owns Countrywide Home Loans and Full Spectrum Lending, is a bank holding company regulated by the Federal Reserve. But now, Countrywide is seeking a thrift charter so that all of its operations will be regulated by a new regulator, the Office of Thrift Supervision (OTS).
Click here to read about CRC's concerns
December 15, 2006: Don't be fooled by Jackson Hewitt's HELP
Jackson Hewitt, a leading tax preparer with more than 6,000 offices throughout the country, claims they want to "HELP" low-income consumers this year. Their "HELP" though is an expensive and risky loan known as the Holiday Express Loan Program or "HELP". "HELP" loans are based on a taxpayer's projected 2006 tax refund calculated only with paystub information, and not official tax documents. Jackson Hewitt started offering HELP loans on November 13 and will continue the program through early January.
Click Here to Read More
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December 15, 2006: Get you taxes prepared for free
If your total household income is less than $39,000, you can have your taxes prepared for FREE at a Volunteer Income Tax Assistance (VITA) site. VITA Sites are community and government organizations that provide free tax help for low income wage earners during the tax season.
Click here for information on how to find a VITA site in California
November 28, 2006: Exploring the Valley's Unbanked Opportunity
Rhea Serna, Policy Advocate for the California Reinvestment Coalition , attended on November 14th a one day summit in Fresno sponsored by the Federal Reserve Bank of San Francisco called "Exploring the Valley's Unbanked Opportunity".
The day consisted of research findings on the unbanked as well as panel discussions on pilot programs in different rural communities and practitioners' best practices for reaching the unbanked. CRC wants to continue to have a presence in the central valley through events like these.
November 28, 2006: Need for Investment Discussed at West Fresno Luncheon
Alan Fisher spoke at the Fresno West Coalition for Economic Development's Risk Takers, Dream Makers awards luncheon on November 16, which drew about 300 people at the Cornerstone Conference Center in downtown Fresno.
Keith Kelley, President of the Coalition, gave awards to community activist George Finley, Triple-A baseball booster John Carbray and state Assembly Member Juan Arambula, D-Fresno, as well as businesses and organizations that have invested in one of Fresno's poorest neighborhoods.
West Fresno lacks any bank branch offices. That's why Fresno County Federal Credit Union received an award for installing the neighborhood's first automated teller machine at the Kearney Palms Shopping Center in March and opening a new branch office west of Highway 99 this summer.
"What's important to let folks know is that we're not asking for charity," Assemblyman Arambula said as he summed up the philosophy behind the awards. "We're asking for an opportunity. We're asking folks to invest in us."
August 24, 2006: Public Hearing Held to Discuss Wachovia & Golden West Merger
Congress persons Barbara Lee and Barney Frank, members of the House Financial Services Committee, held a Public Meeting on the Wachovia & Golden West Financial Merger on Friday, August 4, 2006 at the Ronald V. Dellums Federal Building in Oakland.
More than a dozen California Reinvestment Coalition members and staff spoke on critical community needs in Oakland and California to the two Congress persons and representatives of Wachovia Bank. They were joined by the Greenlining Institute and community members who were concerned about the impact of this merger on Oakland and California.
The meeting was a historic effort by Alameda County representative Lee to give a voice to community members and their neighborhood needs before a bank merger.
June 12, 2006: Federal Reserve Hearing on Home Equity Lending
On Friday, June 16, the Federal Reserve Board of Governors is coming to San Francisco to convene a hearing on problems and solutions relating to home equity lending.
CRC members Housing and Economic Rights Advocates, Los Angeles Neighborhood Housing Services, Multicultural Real Estate Alliance for Urban Change and CRC Associate Director Kevin Stein have all been invited to testify on panels.
CRC members and allies have expressed deep concern about:
1) the prevalence of low-document and stated income loans that may invite brokers to inflate borrower incomes and leave borrowers with loans they cant afford to repay;
2) loans being sold to non English speaking borrowers who do not understand the documents they are being asked, and sometimes pressured, to sign; and
3) the fact that borrowers of color are much more likely to be stuck with higher cost, subprime loans (see CRC study, “Who Really Gets Higher Cost Loans?”).
There is an open mike period beginning at 3pm the day of the hearing, and members of the public are encouraged to come to testify. The Fed will also take written comments on these issues until August 15, 2006.
June 6, 2006: Representative Barbara Lee and Community Members Meet with Wachovia
On June 1, Congress person Barbara Lee, Alan Fisher of the California Reinvestment Coalition, Lynettee Lee of the East Bay Asian Local Development Corporation, WaiChing Wong of the Greenlining Institute and Congressional staff met with representatives of Wachovia Bank about their pending purchase of Oakland-based World Savings.
Ms. Lee and representatives of community organizations raised their concerns about the loss of local headquarters, the need for strong authority in a California president, branches in low income areas of Oakland and Alameda County and other key issues. Ms. Lee said very strongly that she would be watching the merger carefully to ensure that Oakland and California did not lose once again from a out-of-state bank buying up a local financial institution.
June 2, 2006: Hearing Addresses Predatory Lenders who Target Military Personnel
Military officials and community advocates urged state legislators at a hearing May 23 to crack down on predatory payday and other lenders who target young soldiers and sailors.
CRC Executive Director Alan Fisher was one of many who testified before the Joint Committee on Boards Commissions and Consumer Protection at the hearing entitled “Protecting our Protectors: Confronting consumer scams aimed at military personnel.”
Testimonies included concerns about automotive repair scams, automobile lemon law practices, consumer loans, payday lending and rent to own companies who prey on military personnel and their families.
Marine Master Sgt. Bell and Navy Capt. Patter testified as to the struggles of military personnel lured into payday loans. Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS), spoke of the difficulties presented by unscrupulous auto dealers and lenders.
Mr. Fisher pointed out that it is grossly contradictory for the country to ask soldiers to put their lives on the line, yet not protect them from predators who affect their ability to do that very job. He also highlighted the fact that military personnel were often people of color from low-income neighborhoods also targeted by the same predatory lenders.
May 26, 2006: CRC Presents at Housing California Conference
CRC Associate Director Kevin Stein presented on a panel entitled, “The Role of the Housing Counseling Organization in Combating Predatory Lending,” at Housing California’s annual conference May 24.
His co-panelists were: Nancy Flores, Department of Housing and Urban Development; Maria Benjamin, Community Housing Development Corporation; Maria Giuriato, Monterey County Housing Alliance; Jennifer Harris, Sacramento Home Loan Counseling Center and CRC Board Member Heidi Li, Housing and Economic Rights Advocates.
Kevin presented findings from CRC studies on predatory and subprime lending. He also talked about how housing counselors can help in the fight against predatory lenders. Kevin announced that Wachovia’s pending acquisition of World Savings presents a perfect opportunity for advocates to influence loan products offered in California by commenting on the merger.
CRC also had a table at the conference and called passers-by to action. We distributed information about the Wachovia-World merger and provided sample letters for people to write to Wachovia’s CEO about making a reinvestment commitment to California. We also informed people at the conference about our campaign to stop predatory payday lenders, and invited them to help us organize in local communities. We provided them with our first draft of a brochure warning against the use of expensive payday loans. Many were interested in the campaign and signed up to help.
