California Reinvestment Coalition

CRC's March Update: SB 1150, CIT Group Merger, and Color of Wealth Event

1) Help stop "Red-Tape Foreclosures" on Surviving Spouses: CRC, HERA, and CARA are co-sponsoring SB 1150 (Leno and Galgiani), a bill that would help stop “red-tape foreclosures” on widows, widowers, and other surviving homeowners and heirs. If your organization would like to support this bill, please contact CRC's associate director, Kevin Stein. We are collecting support letters now, so the sooner you contact Kevin, the better. You can also learn how SB 1150 addresses this problem at this mini website:

2) New Board Member: CRC is excited to have Stephon Taylor from California Resources and Training join CRC's board!

3) CRC Member Training on Bank Performance: In January 2016, CRC conducted a member-only CRA training and provided members with information about the data that we collected from a survey of banks about their 2014 CRA activity. Click here for a summary of the topics and major points that we covered.

4) CIT Group news:

  • CRC’s BadBankMerger featured in Bloomberg article. Last April, CRC launched as a central repository for the many, many issues raised with the CIT Group and OneWest merger. Last week, this website was included in a Bloomberg Op-Ed: CIT Shares' Road to Nowhere, which noted CRC members “fierce protests” against the merger. 
  • CIT Group Receives Subpoenas from HUD’s OIG: Earlier this week, CIT Group released its 10-K and annual report. On page 192, CIT Group disclosed receiving subpoenas from HUD’s Office of the Inspector General in the third and fourth quarters of 2015: “The subpoenas request documents and other information related to the servicing of HECM loans and the curtailment of interest payments on HECM loans.” CIT Group is holding a “Strategic Update” call later this month.
  • CIT Group to Test How Conditional its Merger Approval Is? In case you missed it, CRC's executive director Paulina Gonzalez, and CRC board member, Roberto Barragan, weighed in with an American Banker Op-Ed on the one-year anniversary of the Federal Reserve and OCC hearing on the OneWest and CIT Group merger, and whether CIT Group is proposing to do even less in its CRA plan than it had proposed a year ago.

5) Debt Trap Debbie Campaign Picks Up Steam: The Los Angeles Times picked up on the DNC Chair’s support for payday lenders earlier this week. On Wednesday, National People’s Action delivered 12,000 petitions (click the link to see pictures) to the DNC headquarters, calling on Rep. Debbie Wasserman Schultz to stop helping payday lenders, including through her support of HR 4018, which helps payday lenders, not consumers. Yesterday, Allied Progress launched a campaign ad against Wassherman Schultz in her district.

6) “Color of Wealth in Los Angeles” Report Release: CRC’s own Andrea Luquetta spoke at this event where she discussed strategies to address the income and wealth disparities identified in the report, including strategies to defend against payday lending and overdraft, products that both disproportionately harm communities of color. The report utilizes new data from the National Asset Scorecard and Communities of Color (NASCC) Survey to better understand the economic well-being of people of color in several cities in the United States. The findings in this report reveal major disparities in wealth accumulation across certain racial and ethnic groups and features estimates for U.S. born blacks, blacks who are recent immigrants from Africa, Mexicans, other Latinos, Asian Indians, Chinese, Filipino, Japanese, Korean, and Vietnamese in the Los Angeles Metropolitan Statistical Area. More information about the report and event are available here.