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FEDERAL DEPOSIT INSURANCE CORPORATION

+ + + + +

ADVISORY COMMITTEE ON ECONOMIC INCLUSION

(ComE-IN)

+ + + + +

MEETING

+ + + + +

THURSDAY,

APRIL 27, 2017

+ + + + +

The Advisory committee convened at 9:00 a.m.

in the Federal Deposit Insurance Corporation

Board Room, 550 17th Street, N.W., Room 6010,

Washington, D.C., Martin J. Gruenberg, Chairman,

presiding.

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PRESENT:

MARTIN J. GRUENBERG, Chairman, FDIC

ROBERT ANNIBALE, Citi

MICHAEL BARR, University of Michigan Law School

JANIE BARRERA, LiftFund

TED BECK, National Endowment for Financial 

 Education

KELVIN BOSTON, Boston Media, Inc.

JOSE CISNEROS, City and County of San Francisco 

MARTIN EAKES, Self-Help Credit Union

REV. DR. FLOYD FLAKE, The Greater Allen 

 A.M.E. Cathedral of New York

ESTER R. FUCHS, Columbia University School 

 of International and Public Affairs

ANDREA LEVERE, Corporation for Enterprise 

 Development

PATRICIA McCOY, Boston College Law School

ALDEN J. McDONALD, JR., Liberty Bank and Trust

 Company

BRUCE MURPHY, KeyBank

MANUEL OROZCO, Institute for Inter-American 

 Dialogue

JOHN W. RYAN, Conference of State Bank

 Supervisors

PHILLIP L. SWAGEL, University of Maryland, 

 School of Public Policy

JOHN C. WEICHER, Hudson Institute 

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 CONTENTS

Call to Order and Opening Remarks. . . . . . . . . 5

 Marty Gruenberg, Chairman, FDIC

Overview of Economic Inclusion Summit

 Moderator:

 Jonathan Miller. . . . . . . . . . . . . . . 8

 Speaker Presentations: 

 Michael Barr, Professor

 University of Michigan Law School. . . . . .10

 Patience Singleton, FDIC . . . . . . . . . .17

 David Friedman, FDIC . . . . . . . . . . . .30

 Laura Lawrence, FDIC . . . . . . . . . . . .41

 Kelvin Boston, President

 Boston Media, Inc. . . . . . . . . . . . . .49

 Alden J. McDonald, Jr. . . . . . . . . . . .55

 Liberty Bank and Trust Company

 Mark Pearce, FDIC. . . . . . . . . . . . . .57

Neighborhood Access to Bank Branches

 Moderator:

 Keith Ernst, FDIC. . . . . . . . . . . . . 103

 Speaker Presentation:

 Kristopher Rengert, FDIC . . . . . . . . . 105

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Building Economic Inclusion Collaborations

for Underserved Communities

 Moderator:

 Eloy Villafranca, FDIC . . . . . . . . . . 163

 Speaker Presentations:

 Angelisa Harris, FDIC. . . . . . . . . . . 172

 Emerson Hall, FDIC . . . . . . . . . . . . 183

 Clinton Vaughn, FDIC . . . . . . . . . . . 194

Accessing Resources for Affordable

Mortgage Lending

 Moderator:

 Lessie Powell Evans. . . . . . . . . . . . 226

 Speaker Presentations:

 Sandra Kerr, FDIC. . . . . . . . . . . . . 234

 Ron Haynie . . . . . . . . . . . . . . . . 248

 SVP, Mortgage Finance Policy

 EVP, Mortgage Services

 ICBA

 Teresa Perez, FDIC . . . . . . . . . . . . 255

Closing Remarks

 Martin J. Gruenberg, Chairman, FDIC. . . . 276

Adjourn. . . . . . . . . . . . . . . . . . . . . 277

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1 P-R-O-C-E-E-D-I-N-G-S

2 9:07 a.m.

3 CHAIRMAN GRUENBERG: Good morning,

4 everybody.

5 If I could call our meeting to order,

6 let me begin by thanking you all for being here

7 and welcoming you.

8 I think we had a good day yesterday

9 with the Economic Conclusion Summit. I thought

10 it, hopefully, pulled together the thinking and a

11 lot of the work that has gone on in this area

12 over the last several years. I think we will

13 have an opportunity this morning to talk a little

14 bit more about that.

15 If I may, what I would particularly

16 welcome from you is in some sense your thoughts

17 on, well, now what do we do? You know, we've

18 done a lot of good work in this area. I think we

19 reviewed a lot of it yesterday. And there's a

20 lot of ongoing work to be done, building off of

21 what we have been working on, but in some sense

22 getting from you any thoughts on future strategic

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1 directions.

2 In many ways this Committee really

3 has, fair to say, driven our work in a very

4 constructive and helpful way and productive way. 

5 And your thoughts on where we should head in the

6 future. Assuming we're going to carry forward

7 what we've been doing, are there other things we

8 should be thinking about, other directions we

9 should consider? I mean, we thought it would be

10 particularly helpful and, in light of the

11 discussion yesterday, I think appropriate. So, I

12 just thought I would provide that for you. That

13 will be the first panel discussion this morning.

14 The second panel, which I think will

15 be an interesting one, FDIC staff will share

16 results from new FDIC research. That should give

17 us deeper insight into how to better measure

18 neighborhood access to bank branches.

19 Our household surveys indicated that

20 about 28 percent of consumers with bank accounts

21 continue to use branches as their primary way to

22 access their accounts. For lower-income

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1 households and elderly households the reliance on

2 bank branches is even greater.

3 So, being able accurately to access

4 the neighborhood's access to bank branches will

5 allow both banks and the public to better target

6 resources to promote access to service. So, I

7 think it is an interesting piece of work and

8 useful thinking, again, strategically of how we

9 can use branches to better improve access to

10 service.

11 After lunch, the FDIC Community

12 Affairs staff will discuss a number of regional

13 collaborations that have promoted financial

14 education, financial capability with youth, and

15 access to banking services.

16 One of the big things of yesterday's

17 discussion was local partnerships and building

18 off of local partnerships as a vehicle for

19 expanding access, and thought by describing some

20 of the local work we have done might be useful

21 for that discussion.

22 And the final panel of the day will

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1 focus on the FDIC's Affordable Mortgage Lending

2 Guide and Online Center. The FDIC developed a

3 three-part series that identifies key resources

4 for community banks and housing organizations for

5 information about affordable mortgage products

6 and programs. The panel will also highlight the

7 website we have developed to disseminate this

8 information. And I think this farther response

9 and utilization of this has in some measure even

10 exceeded our expectations. So, we thought this

11 would be a useful area for discussion as well.

12 I think we have got a good day

13 planned. I would remind everybody that this

14 meeting is being webcast live and recorded for

15 future viewing. So, we are not alone here.

16 (Laughter.)

17 Perhaps keep that in mind. But I

18 think we have a good program for the day.

19 If I may, let me turn it over to Jon

20 from here.

21 MR. MILLER: Thank you. Thank you,

22 Mr. Chairman.

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1 Good morning, and good morning,

2 members of the Committee.

3 I want to just start by thanking those

4 of you who were able to be here yesterday at our

5 Economic Inclusion Summit and who played a role. 

6 It was very gratifying to see the Committee's

7 work highlighted so well, and I appreciate your

8 efforts.

9 So, as the Chairman mentioned in his

10 opening remarks, this panel is going to be to

11 sort of chew over, if you will, the many

12 presentations we heard yesterday at the Economic

13 Inclusion Summit.

14 For those of you who were not able to

15 be here, we put a packet of the material that we

16 handed yesterday at your places. It has been my

17 experience that it takes some time when you're

18 confronted with so much new information to digest

19 it, and we wanted to start that process now while

20 we have the benefit of the Committee with us

21 today.

22 So, the way I thought we would proceed

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1 this morning is get a five-to-eight-minute

2 summary of each of the panels, including the

3 lunchtime speaker, and then, open the floor to

4 the general discussion. The summaries will be

5 presented by the moderator of the panel if one of

6 the Committee members was the moderator or one of

7 the fine staff we have sitting here with me if we

8 used an outside moderator. The bios for the

9 staff are in your materials. Let me just say

10 it's a sharp group of people and dedicated group

11 of people.

12 (Laughter.)

13 I contend with them every day.

14 (Laughter.)

15 So, with that, Michael, let me turn it

16 over to you to start the summaries, and we'll do

17 it in the order that the panel is presented,

18 which is a little bit different than we're laying

19 out here. So, I'll cue you.

20 MEMBER BARR: Thanks, Jonathan.

21 So, I am going to, I guess, summarize

22 myself and, then, summarize the other panels in

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1 quick order.

2 Our panel is really looking at the

3 role of research, broadly speaking, in designing

4 new ways to help low- and moderate-income

5 communities. I opened the conversation by

6 talking about the research that has been done on

7 the vulnerability of communities, particularly in

8 the wake of the financial crisis, but also given

9 long-term changes in the structure of work and

10 employment that mean that many households are

11 facing a good deal of income volatility and also

12 expense volatility. And that was brought out

13 later in the panel as well.

14 Then, I suggested four areas that we

15 might spend some time working on together, and I

16 invented the four P's of products, focusing on

17 looking at ways of developing along the lines

18 that this Committee has been really quite focused

19 on, safe and affordable products, but with a

20 renewed emphasis on trying to generate some

21 slack, some financial cushion for low-income

22 households to weather income and expense

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1 volatility.

2 The second area that many people are

3 already working on is partnerships with local

4 organizations to try to deal with the range of

5 problems that low- and moderate-income families

6 have.

7 The third is consumer protection, and

8 I highlighted the importance of keeping a strong

9 and robust consumer financial protection agency

10 as part of that package of protection, to make

11 sure that we don't expose low-income families and

12 middle-income families to abuse in the

13 marketplace.

14 And lastly, on policy there's lots of

15 new areas to work in, and I focused particularly

16 on the big problem of consumer autonomy and

17 giving consumers better ownership of their

18 financial data and giving them a better ability

19 to have control over that data, to port that data

20 to other financial institutions, and to generate

21 more competition in the marketplace for banking

22 products, which should help drive down

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1 contingency fees and improve service, so that

2 people are not metaphorically being bloodied and

3 punched in the nose.

4 So, the other panelists did a terrific

5 job using three different research approaches to

6 tell us more about the state of low- and

7 moderate-income and middle-income families in the

8 United States with respect to their financial

9 services.

10 Keith Ernst from the FDIC, whom you

11 all know extremely well, at this point presented

12 data from the FDIC's unbanked and underbanked

13 survey to start out. The really striking thing

14 from Keith's presentation of that data was the

15 extent of variation in banking status and

16 outcomes based on geography, educational status,

17 and income. And the wide variation suggests that

18 we're not going to have one strategy that is

19 going to be uniformly helpful to everybody.

20 Keith also explained the findings from

21 the mobile financial services research that this

22 Committee has heard about before, with a

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1 particular focus on the ways in which mobile

2 financial services might overcome some of the key

3 gaps that non-mobile services provide. So,

4 things like safety and convenience and cost that

5 have been the subject of many of our

6 conversations together here.

7 The next speaker was Fiona Greig. 

8 Fiona is the Research Director at the JPMorgan

9 Chase Institute, which is an independent research

10 part of JPMorgan Chase that has been doing work

11 with data from 35 million account-holders at

12 JPMorgan Chase.

13 And Fiona's work emphasized, in

14 particular, income and expense volatility. And

15 the findings are really quite, again, striking. 

16 These are customers who are banked, customers who

17 are middle-income predominantly, customers who

18 have quite an extensive range of relationships

19 with JPMorgan Chase. So, they are not customers

20 who are tangentially connected to the banking

21 system. They are really quite in the wheelhouse

22 of banks. And they are suffering enormous

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1 amounts of income expense volatility, and they do

2 not have the savings cushion required to match

3 their income and expense flows in an easy way.

4 And you can see in the data big spikes

5 for medical expenses, big spikes for auto repair,

6 big spikes for tax payments, and potentially

7 shifting of expenses like medical expenses into

8 periods in which there's higher income,

9 suggesting that people may be either delaying

10 medical services or at least delaying medical

11 payment because of a lack of a cushion.

12 And then, our last speaker on the

13 panel was Rachel Schneider, who is at the Center

14 for Financial Services Innovation, CFSI, and they

15 had been studying with Jonathan Morduch in NYU

16 low- and moderate-income families through

17 different techniques. We have survey methodology

18 in the first one. Our second one, Fiona's work,

19 is really administrative banking data. And

20 Rachel's product with Jonathan is in-depth

21 household sociological studies in financial

22 diaries, trying to record the activity on a

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1 regular basis of these families. They've just

2 published a terrific book on this set of

3 findings.

4 Really what the sociological study is

5 able to show in detail is the extent of juggling

6 going on in low- and moderate-income families,

7 given their income and expense volatility. And

8 there's extraordinarily complicated financial

9 management going in these families. It is really

10 quite striking how hard it is for them to keep

11 things going, to juggle debt, to juggle expenses,

12 to add extra job after extra job to try to make

13 the income add up to the level of expense they

14 have, and it is a brutally difficult task for

15 them that is taxing, from the survey, from the

16 sociological studies, taxing to them economically

17 and emotionally. So, a huge amount of stress.

18 It was, I thought, a really

19 interesting, myself excluded -- an interesting

20 and fun panel. I learned a lot, and I think it

21 will help the Committee think through in a much

22 higher level of detail the range of financial

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1 services that might be necessary to help families

2 meet that stressful environment.

3 MR. MILLER: Great. Thank you. Thank

4 you, Michael.

5 The second panel was on safe banking

6 products, and Patience Singleton, an Acting Chief

7 in our Policy Branch, will summarize that.

8 MS. SINGLETON: Good morning.

9 As Jonathan indicated, I am going to

10 give you a summary of the second panel. It

11 focused on safety banking products. It was

12 moderated by Denise Belser of the National League

13 of Cities. It focused on the best practices

14 regarding the design and delivery of products

15 that work for customers, communities, and

16 institutions.

17 The panelists discussed innovative

18 solutions to address problems facing underserved

19 populations and individuals, solutions involving

20 traditional financial literacy, coaching,

21 creative partnerships, and the use of technology

22 as ways to increase financial services access and

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1 financial stability.

2 The first panelist on the panel was

3 Rani Boukerrou. And I'm not sure if that's the

4 right pronunciation. He's with KeyBank. His

5 presentation centered on how the banks' efforts

6 to meet the needs of consumers actually

7 transformed the culture of the bank and how the

8 bank is now focused on the financial well-being

9 of all of its customers on a holistic approach,

10 including the underserved.

11 He mentioned sort of the four C's,

12 right? And the four C's for Rani were cash,

13 convenience, credit, and coaching. They were the

14 primary needs of banking clients identified by

15 KeyBank, and he described the Bank's efforts to

16 reach underbanked clients in each of these areas.

17 So, I'll just quickly go through some

18 of the products and, then, mainly talk about

19 their Financial Wellness Program. But they have

20 a KeyBank Plus Program. As you know, it allows

21 non-customers to cash checks at the institution. 

22 KeyBank has a Hassle-Free account, and that is

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1 sort of a deposit account with no monthly fees,

2 no minimum balance, no overdraft fees, and it's

3 sort of a free debit card.

4 And the other product was a Key Basic

5 Credit Line, and that is an unsecured revolving

6 credit line which provides instant access to

7 funds. The credit limits were $200 to $5,000,

8 and the charged fees with APRs of sort of 17

9 percent to 24 percent, and the actual trade lines

10 were reported to the credit bureaus.

11 I think that's sort of the most

12 innovative and the most interesting part of his

13 discussion, at least from my perspective, was

14 their Financial Wellness Program. And it's sort

15 of KeyBank's approach to focusing on the

16 financial wellness of all of its customers.

17 Rani indicated, and I think it's sort

18 of a theme that I sort of saw through the entire

19 presentation of the panelists, was that access

20 isn't sort of sufficient to secure economic

21 security and stability for a lot of underserved

22 individuals or consumers in general; and that

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1 they have a program that's intended to increase a

2 customer's confidence and to bring greater peace

3 of mind to all consumers.

4 The Financial Wellbeing Program

5 includes as a key component of it utilizing this

6 platform HelloWallet. And that's an application

7 that uses insights into customers' behavior to

8 provide individual guidance which allows the

9 customer to control finances by sort of setting

10 their goals and monitoring their progress based

11 on an app. It's a no-cost service provided to

12 the customers.

13 And basically, customers answer

14 questions on the app that help them develop a

15 financial wellness score, and it's a score from 1

16 to 100 based on eight categories, such as how

17 much you're saving, how much you spend, you know,

18 your loan and credit card balances, whether or

19 not you have insurance coverage and the amount. 

20 So, based on that key information, the app

21 provides recommendations and provides helpful

22 reminders and meaningful tips.

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1 He had indicated, based on some

2 research, oftentimes when you're sort of dealing

3 face to face, a lot of I guess individuals, they

4 don't want to really to tell you what their real

5 financial state is. And the app allows people to

6 have some anonymity in doing it and being free to

7 put in their real information regarding their

8 current status.

9 The second panelist was Margaret Libby

10 from MyPath. MyPath is a national nonprofit

11 focused on paving economic pathways for low12 income youth and it's headquartered in San

13 Francisco.

14 Margaret's presentation focused on the

15 organization's initiatives to help youth

16 transform and utilize their very first paychecks

17 to help place them on the road to financial

18 stability and mobility. They mainly focus on

19 individuals that are 16 to 24 years old who are

20 employed, but they live in these financial

21 deserts. And by that, those are places where

22 there are not a lot of opportunities for them to

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1 learn to manage their finances or to really have

2 access to some mainstream financial services.

3 The products that they use are built

4 around the needs of the youth based on research

5 and various discussions. MyPath's philosophy is

6 that you need to really start early with youth,

7 obviously, and to position them on a path where

8 they could, obviously, be able to meet their

9 financial needs.

10 They've found that, under traditional

11 financial education programs, individuals weren't

12 necessarily maintaining -- you know, a lot of

13 programs were you give them a program where you

14 cash your check and you provide some financial

15 literacy, but it was not sustainable.

16 So, under their model, they embed

17 goals and incentives in the program. First, the

18 youth are provided with quality financial

19 products and, then, they combine that with a

20 financial education component that is also a

21 financial and personal goal and savings

22 component. And that helps the individuals lead

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1 to financial empowerment and mobility.

2 Similar to what KeyBank does, there is

3 also a MyPath technology or sort of app that they

4 use to help the youth. They set goals. They

5 monitor their spending. And by goals, it is

6 something that is sort of concrete. You're going

7 to save for the prom or you're going to save for

8 college. So, you have that in mind and you sort

9 of monitor your spending, and there is sort of an

10 expense tracker that's involved with that.

11 Another component is the partnership. 

12 He indicated that partnerships are extremely

13 important to the success for the program. The

14 model involves local youth employment programs,

15 the MyPath program being the center of a lot of

16 this, and various financial institutions, banks,

17 and they indicated they are working closely with

18 self-help. So far, 8,000 low-income worker youth

19 have received banking accounts, savings, and

20 they're on the path of building credit.

21 The last panelist was David Johnson of

22 BankPlus, and that's a bank in Mississippi. He

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1 discussed BankPlus' small dollar loan alternative

2 to payday lending that they developed in 2008 to

3 help the underbanked and underserved individuals

4 in Mississippi sort of break the payday lending

5 cycle and to start a savings plan. He indicated

6 that it's a huge problem. Payday lenders are

7 basically on every corner, not every corner,

8 maybe two on every corner. In the State I think

9 there are like a thousand outlets in the State,

10 more than McDonald's in the State. So, there was

11 a definite need that they needed to address.

12 So, they sort of created a small13 dollar, short-term, partially-secured loan

14 product, and it was designed to help individuals

15 sort of break the cycle. They are able to sort

16 of charge 5 percent for this loan product. 

17 People were like, wow, that's very interesting

18 and very helpful.

19 Over the past I guess eight or nine

20 years now, they indicated that there were some

21 initial issues with the program regarding people

22 who would get the loan and kind of sort of walk

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1 away and not pay it. So now, they have sort of

2 three different loan products. There is a

3 credit-builder, which is fully secured by a

4 BankPlus savings account for persons with credit

5 scores I think under 500. Again, it is to

6 address the higher default rates.

7 And then, there are more sort of

8 traditional products or the Credit Plus loans

9 that I mentioned. And these are loans that are

10 either $500 or $1,000, requiring higher credit

11 scores. The loan amount is split between the

12 BankPlus checking and savings account, and the

13 amount in the savings account is placed on hold

14 until the loan is paid in full. These loans are

15 generally 12 months to 24 months.

16 They talked about there's a financial

17 literacy component. You have to attend a class. 

18 And then, there's the secured checking and

19 savings account. The requirements for obtaining

20 a loan are sort of a mandatory attendance at the

21 financial literacy seminar. You receive a

22 certificate for your completion of the program,

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1 and you have to show six months verifiable

2 information. So, those are the requirements.

3 And the program has been fairly

4 successful. So far, there have been sort of

5 almost 27,000 loans originated, totaling almost

6 $20 million.

7 So, the key -- I'm winding down -- the

8 key takeaways from this particular panel, I

9 think, there are a number of them. Again, access

10 is not enough. You need access plus solutions

11 for longer-term financial stability and well12 being. People need to be able to set goals and

13 know how to engage and build financial

14 capabilities.

15 The ultimate goal of bringing people

16 into the economic mainstream is to get consumers

17 to control their finances, that ultimately lead

18 to financial stability, security, and mobility. 

19 And this was sort of based on, I guess KeyBank

20 based a lot of their focus on research showing

21 that, for people I think between 30 and 60, that

22 financial security was their top concern. So,

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1 just can't give someone a bank account. You

2 really have to understand holistically what their

3 financial concerns are and help them meet their

4 goals.

5 Again, as I indicated, sort of giving

6 check-cashing -- cashing a check for a younger

7 American who is just getting a first account

8 isn't sufficient. You've got to provide

9 wraparound service for them as well, and

10 understanding that one's finances and savings are

11 critically important to stability and their

12 financial security.

13 Another sort of take away from the

14 presentation was sort of building products around

15 needs. You know, use research; use input from

16 the public on the needs of clients to help shape

17 products and services. KeyBank did that very

18 well with respect to their sort of low- or no19 cost bank account. They showed that fees were a

20 primary determinant on what bank or bank account

21 you select. And they obviously wanted to make

22 sure that that wasn't a barrier for individuals

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1 hoping to select KeyBank.

2 Again, MyPath showed that helping low3 income individuals required a lot more work and a

4 comprehensive approach beyond just cashing the

5 checks and giving them a one-time financial

6 literacy course.

7 With respect to BankPlus, they

8 obviously identified a problem plaguing

9 communities in Mississippi, right, the

10 proliferation of the payday lending funds, and

11 what they could do to address the concerns.

12 A third, I guess, takeaway is that

13 technology. Technology can be an important means

14 of helping consumers set goals, control their

15 finances. While it's really not a silver bullet,

16 it is something that we need to embrace, and it's

17 been fairly successful so far with these

18 particular programs.

19 And so, another takeaway is customers

20 want to control their finances, and that's sort

21 of connected to some of the earlier points. But

22 banks and their partners can be at the forefront

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1 of efforts by providing innovative products and

2 services, utilizing sort of technology and

3 coaching to help individuals control it.

4 I think the last takeaway I'll mention

5 -- there are a couple of more -- but be willing,

6 when you create a program, be willing to adjust

7 the program, right? Expand its focus, if that's

8 what it takes. Be prepared to identify what

9 problems are, where there are some areas where

10 there can be improvement, and address them.

11 I think BankPlus did that very well

12 with respect to its secured loan. They initially

13 said there are a lot of people coming in,

14 because, basically, all you had to do is take a

15 course and they give you $250. So, people would

16 come, take the course, and leave. So, they had a

17 very high default, but they have adjusted and

18 they have sort of set up two-tier types of credit

19 or loan products, one that's completely secured

20 and one that's partially secured.

21 So, those are some of the takeaways. 

22 Obviously, as we move forward and address these

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1 issues, these are some of the concerns and issues

2 that we will need to consider and address.

3 Thank you.

4 MR. MILLER: Thank you.

5 I'm just going to add two things on

6 that, numbers that jumped out at me during the

7 presentation. One, for Ms. Libby, 50 percent of

8 the participants in the youth employment project

9 had used check cashers prior to the program, and

10 only 1 percent after participation in the

11 program. I thought that was worth mentioning.

12 And I think the other thing worth --

13 Patience said short-term; really 12 months to 24

14 months, and not short-term in the sense that we

15 come to think of in terms of the BankPlus

16 product, that we come to think of the payday

17 lending.

18 The third panel, David Friedman, a

19 Policy Analyst in our policy shop, will talk

20 about the Economic Inclusion Partnerships panel.

21 MR. FRIEDMAN: Thanks, Jonathan.

22 So, as Jonathan mentioned, the third

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1 panel of the day focused on Economic Inclusion

2 Partnerships that connect financial knowledge and

3 financial services with workforce education,

4 health, economic mobility, and other

5 opportunities. The panel was moderated by

6 Jonathan Mintz, who is President and CEO of the

7 Cities for Financial Empowerment Fund, and

8 featured perspectives of panelists representing

9 local, state, and federal government as well as

10 banks.

11 So, Jonathan Mintz kicked off the

12 panel by noting that the success of economic

13 inclusion work depends fundamentally upon the

14 vibrancy of partnerships, and he noted CFE funds

15 work with the FDIC to promote access to safe

16 banking products as a prime example of that.

17 The discussion overall focused on

18 lessons learned about the art of partnerships,

19 best practices, and factors that go into

20 partnering with different sectors.

21 So, Mary Dupont, Director of Financial

22 Empowerment for the Delaware Department of Health

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1 and Social Services, described the unique role

2 that government can play in reaching communities

3 to expand personal financial well-being. She

4 described Delaware's Stand By Me Statewide

5 Financial Empowerment Program which is focused on

6 financial coaching as well as access to products

7 and services. And she discussed Delaware's

8 multisector public/private systems change

9 approach to financial inclusion that leverages

10 the support of employers, state agencies, K-to-12

11 educators, nonprofits, and higher education

12 institutions.

13 The next speaker was Tina Lentz, who

14 is the Executive Administrator of the Advocacy

15 and Empowerment Division of the Department of

16 Community Services for Louisville metro

17 government. So, she noted, among other things,

18 the connection between household financial

19 stability and neighborhood economic stability. 

20 So, their work on financial empowerment and

21 economic inclusion in Louisville is a combined

22 effort between the Community Services Division as

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1 well as the Economic Development Department. And

2 she noted that their philosophy is that, by

3 moving households to mainstream banking, the city

4 could demonstrate to investors that economic

5 development investments would pay off. So,

6 that's sort of how they approached that dual

7 agency structure in Louisville.

8 And both Mary and Tina shared charts

9 outlining some of the webs of partnerships and

10 really showed the interconnectivity of

11 partnerships developing in this area to promote

12 economic inclusion.

13 The next two speakers, Greg Housel of

14 the FDIC and Jackie Loya-Torres of Commerce

15 Bancshares, described some work that they're

16 doing in Kansas City to build economic inclusion

17 partnerships to address family stabilization,

18 financial education, and economic mobility with

19 the goal of banking the unbanked.

20 They discussed the work of their

21 Alliance for Economic Inclusion and the Money

22 Smart KC Program, emphasizing that their work

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1 included partners across sectors: financial

2 institutions; nonprofits; government; churches;

3 schools; employers, particularly human resources

4 directors, and re-entry programs, among others.

5 And they described the very

6 collaborative effort involving 131 partners to

7 create a resource database to really connect

8 people to the range of services that are

9 happening across sectors in Kansas City and to

10 forge new partnerships.

11 After sort of describing their

12 programmatic work and partnerships, panelists

13 noted some of the key lessons learned and some of

14 the best practices that they ascertained over the

15 years.

16 So, first and foremost, panelists

17 noted that partnerships are really the key way to

18 reach new populations to provide economic

19 inclusion services. Finding trusted

20 organizations who are already working with a

21 population that they are trying to serve is

22 really the best practice and the easiest way to

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1 provide economic inclusion services to a range of

2 populations.

3 Second, for partnerships to work,

4 there really has to be a common thread that has

5 to resonate with stakeholders, strategic goals. 

6 So, fundamentally, successful partnerships have

7 to present a win/win for both organizations. And

8 we heard about a range of examples from

9 Delaware's Stand By Me partnership with Head

10 Start, where Head Start Childcare Centers can

11 actually get extra points on their quality and

12 community services ratings if they offer

13 financial coaching and financial education both

14 to the community as well as to their own

15 employees.

16 We also heard about a number of

17 connections to housing programs in Louisville,

18 where the Housing Authority is working with

19 Credit Builders Alliance to report rental

20 payments, and in Delaware where the Department of

21 Housing works with Stand By Me to get folks sort

22 of ready for homeownership counseling and

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1 homeownership.

2 The third lesson that I took away from

3 the panel was that partnerships aren't one-size4 fits-all and that partnering with government,

5 with the private sector, with community-based

6 organizations, and with banks, each have their

7 own unique aspects to consider.

8 And fourth, as in all things, in

9 partnerships communication is key and building

10 relationships takes time. There is a metaphor to

11 dating that was used that I think is apt to

12 describe sort of partnership development.

13 Lastly, not all partnerships will

14 worked as planned, and it is important to know

15 when to end partnerships that are not working. 

16 This was not related to the dating metaphor,

17 though perhaps could be.

18 (Laughter.)

19 And we heard, for example, about a

20 partnership in Delaware where they were providing

21 financial counseling in a supermarket to

22 supermarket employees, and there were challenges

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1 with getting employees to be able to step away

2 from their job to have financial counseling

3 during their work shift.

4 So, on the theme of ending things, I

5 will conclude my remarks there.

6 (Laughter.)

7 MR. MILLER: What was notable about

8 the Delaware example is it was a family-owned

9 grocery store. The owners were fully supportive

10 of the group coming in to do the counseling, but

11 the managers of the grocery and the lower-level

12 supervisors still had to manage the workforce and

13 make sure the work got done. And so, there just

14 wasn't time for the program to work as designed. 

15 So, it was sort of a lesson of how you have to

16 sell down as well as up.

17 We, then, heard from Maurice Jones,

18 who is the relatively new CEO of LISC, the Local

19 Initiatives Support Corporation, one of the

20 premiere nonprofit housing and community

21 development groups in the country.

22 He started his discussion at lunchtime

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1 by referring, actually, to our 2013 household

2 survey, and he focused on some of the findings

3 there about the impact of job loss or reduction

4 in income on pushing people out of the banking

5 system, the importance of getting a job in terms

6 of getting people back into the banking system,

7 and the finding that one of the primary reasons

8 people say they don't go into the banking system

9 or don't have a bank account is they don't have

10 enough money to get an account.

11 And his conclusion was we need to

12 help, or LISC's conclusion was that they need to

13 help individuals improve their incomes and get

14 jobs, and that that was a key to getting into the

15 banking mainstream. He talked about the people

16 that they work with are generally poorly

17 educated; often not even high school diplomas,

18 poor literacy, not just financial literacy,

19 literacy; poor numeracy, and that the solution

20 really demands a multidisciplinary approach.

21 So, they have created what they call

22 their Financial Opportunity Centers, FOCs. They

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1 have about 80 around the country. And they

2 provide three services at these Financial

3 Opportunity Centers.

4 One, financial coaching. So, they do

5 individual budgets with people. They try help

6 the people get a handle on their debts, and they

7 work on obtaining a credit score if they have

8 none, growing a credit score if they have none,

9 or improving one if it's poor.

10 So, one, financial coaching. Two,

11 they connect individuals with benefits they're

12 entitled to. So, there might be childcare

13 benefits they've left on the table, EITC, housing

14 subsidies, et cetera.

15 And the third service is workforce

16 development skills and, then, job search and

17 placement. And they described this as very,

18 Maurice described this as very intense customized

19 work focused on specific jobs. So, not just

20 we're going to train you to be a medical

21 technician. We're going to train you to get this

22 job in this medical technician practice. We are

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1 going to train you to get this computer coding

2 job. This is the company that is hiring.

3 And they try to do it in weeks or

4 months, he said, not years. And he said the

5 results were good if they could get people to

6 take up at least two of those three services. 

7 That was really the key, and the results were

8 good and they're still working on it. They are

9 seeing improving credit scores, increased

10 employment, increases in net worth.

11 The key, he said, and working nicely

12 with the panel that came before it, the key is

13 finding good local partners because it is a very

14 high-touch approach. So, it is not something

15 that can be mailed in.

16 Janie can say it; they are looking for

17 an Executive Director. Let me know if anybody

18 knows a good person.

19 (Laughter.)

20 The fourth panel -- I'm sorry, I'm

21 losing track here -- the fourth panel, sustaining

22 customer relationships.

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1 Laura Lawrence. Thank you. Sorry, I

2 lost track.

3 MS. LAWRENCE: That's okay. It gave

4 me a minute to put the microphone down.

5 I had the pleasure of talking about or

6 I have the pleasure of talking about sustaining

7 customer relationships. And you're going to hear

8 some of the same themes that you've heard

9 earlier, which really tied together the whole

10 meeting.

11 The moderator was Daniel Dodd-Ramirez,

12 the Assistant Director of the Office of Financial

13 Empowerment, Consumer Financial Protection

14 Bureau. And the panelists were Katy Davis,

15 Managing Director of Ideas42; Leigh Phillips, CEO

16 of EARN, and, then, Janet Gordon stepped in at

17 the last moment because Mr. Ocanas was unable to

18 make it. She is our Associate Director of

19 Community Affairs at FDIC. And the disclaimer is

20 I work for Janet.

21 (Laughter.)

22 She did a wonderful job.

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1 So, my tweet in 140 characters or less

2 for this session, two T's, trust and technology,

3 technology mediated by humans. Listen to your

4 customers; give them control, choices, and a

5 voice in designing fintech. Context matters.

6 So, in many more characters, Daniel

7 opened it up by reminding us what FDIC's research

8 has shown about what some of the reasons are that

9 people who were banked are now not banked. They

10 believe they don't have enough money. Why bother

11 with a bank? They also distrust banks, among

12 other reasons.

13 So, what do they want? Faster access

14 to funds, mobile services, and access to their

15 account balances in real time, so it can affect

16 their behavior.

17 So, why do they go to alternative

18 service providers? They are more convenient. 

19 They are established providers in the community

20 and they're welcomed as customers there.

21 Daniel, then, also kind of talked from

22 his heart and reminded us through a personal

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1 experience that setting aside money for

2 unexpected expenses is critical to low-income

3 families, to be able to do that.

4 And the panelists gave us some

5 insights. Katie talked about Ideas42, which

6 takes behavioral insights and, then, uses those

7 insights to design solutions to everyday issues. 

8 So, we could all have good intentions, but we may

9 not realize how important the contextual features

10 are in what we developed, and the context can

11 change our behavior.

12 So, you have this delightful slide of

13 a gym with steps going up to the gym and an

14 escalator. And everybody was taking the

15 escalator to go exercise at the gym. So, maybe

16 someone didn't think about that design. Context

17 matters.

18 Bank products can be designed well. 

19 They can have an impact not only on what we do,

20 but how we act.

21 Then, Janet talked about how our

22 community affairs team facilitates partnerships

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1 through Money Smart, which I'm sure you all know

2 is our free financial education product that we

3 have curriculums for all ages, and by our

4 technical assistance that promotes partnerships. 

5 And I know later in the agenda today you'll be

6 hearing from our community managers in the

7 Regions.

8 She also reminded us of FDIC's five

9 opportunities which reflect the progression for

10 economic inclusion: financial education at the

11 core, then opening insured bank deposits, credit

12 and savings, affordable mortgages, and

13 entrepreneurship.

14 Then, Leigh Phillips told us about

15 EARN and reminded us half of the people in this

16 country don't even have $400 or $500 to help them

17 pay for an unexpected expense. And so, EARN's

18 technology-based solution helps families save. 

19 They have this app. If you save $20 a month,

20 EARN rewards you with $10 a month.

21 Low- to moderate-income individuals

22 will save money. They can save money. We need

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1 to provide them with the tools and the knowledge

2 to be able to save money.

3 And saving money is transformative. 

4 It provides people with lasting resilience,

5 confidence not only in their financial knowledge,

6 but in their lives as a whole. And it's very

7 impactful. Just that $20 a month, she let us

8 know, even saving that small amount makes a huge

9 difference in the lives of low- to moderate10 income individuals.

11 So, then, we went into the question

12 period. Daniel asked some questions and, then,

13 the audience did as well. And here are the main

14 takeaways, at least that I heard from those

15 questions, as well as the very thoughtful

16 answers.

17 Customer insights are key into the

18 design of products. Talk to your customers, but,

19 hopefully, before they experience distress. 

20 Asking why someone does something might be too

21 intrusive. So, ask what and how questions

22 instead to get at what's going on.

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1 The diversity of partnerships is also

2 key. And if you're trying to reach people with

3 limited English, I mean an obvious solution would

4 be provide information in their language, but

5 also think about using imagery, comics, videos,

6 drawings, and other non-written ways of

7 communicating information.

8 The needs of specific segments of

9 society, such as low-to-moderate income, people

10 with disabilities, whatever the segment, their

11 needs are usually the same needs that everybody

12 needs: actionable knowledge, transparent

13 products that meet their needs, technology that

14 works, but, most of all -- we're back to the two

15 T's -- with trust. Reach your customers. 

16 Provide reliable customer service and make them

17 feel valued as a customer.

18 Technology allows customers to take

19 immediate action. We can just push the button. 

20 We love that, right? That's powerful. So, take

21 advantage of customers' intention at that moment

22 when they are ready to make a choice and take

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1 action.

2 But we were cautioned. Technology can

3 allow things to operate much better, but it can

4 also be a hassle. How many of us have, you know,

5 screamed at our computers?

6 If it's complicated or if it is has

7 glitches, people are going to be turned off and

8 not go back to whatever you thought was a great

9 technological solution. But everything doesn't

10 have to be totally automated or totally manual. 

11 There is a happy medium. We need to find that

12 happy medium. Use automation to get the

13 attention of your customers, but, then, give them

14 the control to make a choice and take that

15 action.

16 We also need to find out what the role

17 is of nonprofits in designing fintech and how we

18 can support each other, and how the voices of

19 low- to moderate-income individuals can be heard

20 when these things are being designed.

21 Humans transcend technology. And

22 they're not mutually-exclusive. We heard of an

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1 example in sending a letter to individuals who

2 are delinquent on their loan payments. Just

3 including the name of the loan officer, that

4 person's loan officer, in an automated email

5 increases the response, that personal touch.

6 And just as Patience said in the

7 session that she summarized -- we also heard it

8 again -- technology is a tool. It's not a silver

9 bullet.

10 And then, we ended up on this, which

11 really is a wonderful summary of the whole

12 session: to sustain customer relationships, we

13 need technology mediated by humans.

14 Thank you.

15 MR. MILLER: Thank you, Laura. Very

16 helpful.

17 The next panel, we went from

18 sustaining customer relationships to growing

19 customer relationships, and Kelvin Boston was the

20 moderator for that.

21 So, Kelvin, if you would give a

22 summary?

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1 MR. BOSTON: Sure. Again, our panel

2 was focusing on how we can grow customer

3 relationships among diverse consumers. We

4 basically wanted to leave the audience, and

5 particularly the financial institutions, just a

6 couple of tips that they could take back to their

7 institutions and begin to implement.

8 We were very fortunate on our panel to

9 have a star with us. We know him as Alden

10 McDonald.

11 (Laughter.)

12 We learned when he was growing up his

13 nickname was Many Jobs.

14 (Laughter.)

15 I'm going to give my remarks, but I

16 would like Alden, since he's here, to just share

17 a couple of the things that you wanted people to

18 take away yesterday, because I think a lot of us

19 were really moved and we learned a lot from your

20 comments. They were very helpful.

21 MEMBER McDONALD: Thank you, sir.

22 MR. BOSTON: But, on the other two

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1 panelists, we had Lindsay Daniels from the

2 National Council of La Raza. We shared her

3 Report on Banking in Color, which was a joint

4 research by the National Council of La Raza, the

5 National Urban League, and the National Coalition

6 for Asian-Pacific American Community Development.

7 And some of their findings I think are

8 important for us to look at. They looked at

9 financial access for low- and moderate-income

10 communities. They found a couple of things that

11 were important.

12 One, that U.S. citizenship status

13 matters, but particularly for the immigrants and

14 non-citizens and people who had limited English

15 proficiency, and even young people, that

16 sometimes they didn't feel welcome in the banks,

17 and that that was an important issue that we

18 should take into consideration.

19 Also, customer service and location

20 matter for people of color when they are trying

21 to access a bank. They look for banks that are

22 close to them and banks that have an ATM close to

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1 their communities or in their communities.

2 Also, they found that people at low

3 levels of income and education are more likely to

4 go to their friends and family members for

5 financial advice. And so, this creates an

6 opportunity for us to think about we can begin to

7 engage them more with our financial literacy

8 programs.

9 The top five priorities that low- and

10 moderate-income communities and their members

11 look at when selecting a financial institution I

12 thought was also revealing. Their study found

13 that, again, distance or location of a bank to

14 their home or workplace was very important to

15 low- and moderate-income families.

16 They also looked at the number of

17 branches or ATMs in a community was still

18 important, and they looked at account fees and

19 requirements for those fees that banks and other

20 financial institutions required them to open an

21 account.

22 Customer service was very important

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1 and the ability, again, to communicate in the

2 native language, whether it was Spanish or Asian,

3 was also important when low- and moderate-income

4 households were looking for a banking

5 relationship.

6 One of the side things that came out

7 that was very, I think, revealing to a lot of the

8 people was the fact that we talk about building

9 relationships with local banks. However, we

10 don't talk about the fact that a lot of times

11 there's a lot of high turnovers, particularly

12 among tellers. And this became a drawback. So,

13 somebody would build a relationship with a teller

14 or somebody at the bank and, then, they would go

15 back to the bank and, if the teller was not

16 there, maybe they even went to another bank, a

17 branch. But that also become a problem. So, I

18 thought that was interesting.

19 We're also fortunate to have Jamie

20 Armistead from Bank of the West there. He is a

21 technologist. And it is very, very interesting

22 that he talked about digital engagement and how

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1 Bank of the West was able to actually increase

2 the number of customers by having a very robust

3 digital engagement program.

4 But, also, it was very surprising to

5 find out that the branches and locations where

6 African-Americans and Hispanics were had a higher

7 usage of mobile banking. But, even more

8 revealing, that they found is that, from their

9 digital engagement, it actually increased more

10 money. It was more profitable. Frankly, in his

11 term, the digitally-engaged customers were more

12 profitable for the banks than the other customers

13 were not engaged digitally.

14 The digitally-engaged customers also

15 had a lower customer attrition rate. Because

16 they were using a mobile platform, they were

17 harder to switch banks. Also, those people who

18 were engaged digitally actually drove branch

19 sales because they would come into the branch to

20 open new services, and they had more services,

21 more bank services, than their other services. 

22 As a result, now the bank is putting more

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1 resources into promoting everything and doing

2 digital channels.

3 And some of the other takeaways were

4 that taking time -- this is something else we

5 learned from Alden -- that their bank was

6 actually taking time to show their current

7 customers how to use technologies inside their

8 banks. And we thought that was just fascinating.

9 The other thing that Alden was doing

10 that I hope he talks about was really just

11 bringing home the point about how health and

12 wealth and financial wellness are tied, so much

13 so that they are talking about diabetes treatment

14 inside of a bank, which I think was just so

15 revealing.

16 The summaries and basic takeaway were

17 the importance of trust, building long-term

18 relationships, digital access, and reducing the

19 barriers, so that more people of color would feel

20 comfortable working with their banks.

21 Alden, would you like to say a few

22 words?

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1 MEMBER McDONALD: Yes, thanks, Kelvin.

2 I think the theme of the entire

3 conference really focused very heavily on

4 partnerships. In growing the business in our

5 institution, we had to implement technology in

6 order to have things to be cost-efficient, No. 1,

7 and had to figure out how to do that. And to

8 grow the business internally, we invested heavily

9 into technology, heavily into partnership.

10 And the other piece that we found is

11 that we have to help individuals deal with some

12 of the other issues that they face in everyday

13 life, and that's why we went to financial

14 wellness as well as your personal wellness. So,

15 we coupled the two and helped individuals to

16 focus-in on their health as well as their

17 financial wealth. We did that through the whole

18 piece of diabetes because in the communities, for

19 the most part, one out of every four individuals

20 are affected by this medical issue.

21 So, we do things like publish recipes

22 for eating healthy. And it is a way of

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1 communicating with the customer base on a regular

2 basis and having them to open the communication

3 piece.

4 So, we have focused-in on very heavily

5 the whole digital engagement, and we found in

6 this community the digital engagement works well. 

7 So, we are focusing on the health side as well as

8 the financial side, and we mix the two, bring

9 them both together, so we can get more

10 collaboration and more pitch.

11 So, we have been dealing with the

12 whole digital piece, digital marketing, social

13 marketing for about three years now, and we are

14 trying to find the right combination. To sort of

15 give you an example, one press release we had,

16 within three days we had over 15,000 hits on it. 

17 So, we know it is working, and that is how we are

18 engaging to grow our business through the digital

19 and social media with the population that we are

20 dealing with.

21 MR. MILLER: Thank you, Alden.

22 Then, the final panel of the day was

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1 the overview, was sort of a forward-looking

2 panel: where do we go from here? And Mark led

3 that panel.

4 MR. PEARCE: Sure. Thanks, Jonathan.

5 I had on my panel Bob Annibale and

6 Andrea Levere and Bruce Murphy. And thinking

7 about it last night, it was also impossible to

8 summarize.

9 (Laughter.)

10 I talked to Jonathan about maybe

11 letting us just roll the tape. He said we didn't

12 have time on the agenda for that.

13 (Laughter.)

14 So, what I am going to try to do is

15 just talk about some of the themes that came

16 through the panel. Since we have the three

17 panelists here, they can fill in any gaps that

18 they really want to make sure that we get into

19 the conversation.

20 You know, I would start with Andrea's

21 comment about how trust was the most utilized

22 word during the six panels or the five previous

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1 panels. And it was interesting, there were lots

2 of different points related to trust that came

3 out through our discussion.

4 We talked about a brand. We talked

5 about how an institution has a personality. It's

6 a set of values. It's a set of principles about

7 how they do business, how they approach their

8 communities. What do you want to be known for

9 was a key theme.

10 So, we talked a little bit about

11 Alden's bank and the focus on diabetes is that

12 really is a connection to his bank's community

13 and their customers.

14 Bruce talked a little bit about

15 affordable housing and investments on long-term

16 housing tax credits, and that some banks might be

17 pulling back from that market, but not KeyBank

18 because it is really part of who they are as an

19 institution.

20 And we talked a little bit about trust

21 didn't mean you have to be perfect, that you can

22 make mistakes, but rectifying those mistakes is

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1 important to maintaining that trust in a

2 community, sort of being willing to say, oh, this

3 didn't work out in accordance to our values,

4 right, in accordance to our approach to our

5 community, and we can do better and we are going

6 to fix it. That was, I thought, an interesting

7 observation.

8 Bruce talked about how this is not a

9 short-term proposition. It's a long-term, and

10 stay the course. It is not something that you --

11 you may need to shift tactics, but your long-term

12 strategy and your commitment to your customers

13 and community and who you are as an institution

14 is really the guiding principles. And those were

15 some of the key elements related to trust.

16 Connecting some of that a little bit

17 to partnerships, one of the things that came

18 through was Andrea talked a little bit about

19 making the business case and the mission case. 

20 And you've got to be able to do both of those,

21 not just about what you're doing, but about what

22 each of your partners is doing, how you make

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1 those connections. It really has to be something

2 that's going to work and be sustainable for your

3 organization, for your partner organizations, and

4 for the consumers and communities that you're

5 working in.

6 And so, even though there may be

7 demographic changes or generational changes or

8 technology changes, all these changes that are

9 going on, it's finding that ability to find

10 something that is sustainable and

11 win/win/win/win/win all the way around, I thought

12 was really interesting.

13 We talked about technology in lots of

14 ways and data in lots of ways. And I think one

15 of the things that I found interesting was sort

16 of the connection between we have a lot more

17 information and data now than we've ever had

18 before, and how we take that data and, then,

19 translate it into solutions that can be targeted

20 for particular challenges in the marketplace. 

21 So, not just studying it, but putting it into

22 practice.

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1 We talked about technology. I am

2 interested in Bob's discussion about

3 interoperability, the ability to utilize

4 technology to make things talk together. As we

5 have more sets of partners and intersections in

6 the larger world, having these services fit

7 together in smoother ways with less friction is

8 really important. Bob talked also about speed in

9 payments as a key opportunity moving forward.

10 But, even as we talk about how we have

11 a greater diversity of partners and a greater

12 diversity of populations and needs, and we can

13 tailor a lot of things, I found it just amazing

14 that at the same time one of the themes that came

15 through to me was that you're not necessarily

16 designing a product for a very small subset, that

17 the products you're developing really are

18 designed to serve a broader population. How you

19 deliver it may be different in certain markets,

20 but that it is really a product design based on a

21 use case for customers and consumers that may be

22 broader than a particular niche.

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1 So, one of the things that really came

2 through from both Bruce and Bob and their

3 comments was their accounts that they offer that

4 were sort of consistent with our SAFE Account

5 template was one of their fastest-growing

6 products, not just to low- and moderate-income

7 consumers, but to other populations. And so, it

8 really was something that had much broader appeal

9 based on a set of product features.

10 We talked a little bit about the role

11 of policy and regulation, things that regulators

12 could do. You know, listening to Andrea talk a

13 little bit about custodial accounts and figuring

14 out age requirements in accounts. And the glass15 half-full part of that was we got to a place

16 where we could help clarify some of the issues

17 related to account ownership and account

18 requirements for a customer identification

19 program. But I also heard just a small note of

20 frustration that it might take a long time for

21 regulators to provide that kind of clarity. And

22 so, thinking through opportunities there.

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1 And I note, just to tie it back to the

2 first panel that Michael moderated on research,

3 was that every question from the audience was a

4 regulatory question, on the application of

5 regulations to the things that the researchers

6 were talking about. So, I found that really

7 interesting and something to think more about.

8 The role the regulators can play in

9 promoting research and in convenings was

10 something that came through.

11 And then, I guess the last thing I'll

12 leave you with, which all three of the panelists

13 talked about in different ways, was hope, that we

14 really have over the last 10 years made

15 significant progress in promoting economic

16 inclusion, and that there might be lots of

17 challenges out there in the current environment

18 and for the consumers and customers that we're

19 trying to bring into the mainstream banking

20 system, but the panelists across the board were

21 optimistic of our ability to make progress in

22 that.

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1 MR. MILLER: So, thanks to the

2 panelists and the moderators for a terrific

3 summary and sort of pulling out some key

4 takeaways.

5 Mr. Chairman, the floor is open for

6 discussion or questions.

7 CHAIRMAN GRUENBERG: Yes?

8 MEMBER WEICHER: Thank you, Mr.

9 Chairman.

10 I had the good fortune of being able

11 to spend yesterday at the Summit, and it was a

12 day well-spent all the way around, from beginning

13 to end. I wanted to say that the summaries we've

14 just heard were outstanding. You couldn't devote

15 the day to them, but we had a very pleasant hour

16 and a half, a very informative hour and a half

17 summarizing the key points and I think also the

18 key takeaways that I heard. So, thank you all.

19 MR. MILLER: Thank you.

20 MEMBER LEVERE: I think I mentioned

21 that we had brought the leaders, the Student

22 Committee of our Assets and Opportunity Networks

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1 to the event. And I want to thank the FDIC for

2 opening that up to them, and we had a briefing

3 session last night with their responses.

4 So, I just wanted to share some of

5 them because they echo both the insights we have

6 heard, but also some of the, as the Chairman

7 said, where do we go from here? There was a

8 stunned view about BankPlus' model and what the

9 economics of that model might be, and the number

10 of times each one of them had sat down with their

11 bank trying to create a similar product and

12 gotten absolutely nowhere.

13 And they were eager to know, was this

14 really a leader for the bank, and to know what is

15 the actual position of this product, how is it

16 used, because they didn't want to walk in and

17 say, BankPlus is doing it. And the other thing

18 that was quite astonishing was that nobody had

19 ever heard of it or of BankPlus before, which

20 there was quite a broad set of players there.

21 And then, adding to this was a very

22 thoughtful comment about some of the savings

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1 products, and that several of the savings

2 products had explicit subsidies attached to them. 

3 And so, there was also a deep interest in how do

4 we mobilize savings at scale where we can't

5 attach the subsidies necessarily. We would love

6 to have them, but we don't always have them.

7 And how can we push on the insights we

8 have so far to take these savings products? 

9 These were kind of entrepreneurs who were leading

10 major savings and financial capability programs.

11 The two other comments that came out

12 were there were several members who work within

13 the bank communities. And we heard several

14 comments yesterday about the anxiety and the

15 feeling within the bank communities, and now, we

16 are seeing this across the board in entering

17 financial institutions, entering other

18 institutions. And what is our responsibility to

19 these communities? What can we do? And there

20 was really very powerful requests for assistance

21 on this piece of the work.

22 And then, the fourth point which came

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1 out multiple ways -- and I raised it yesterday --

2 was how do we deal with primarily the game3 changing and groundbreaking research that has

4 been done by the FDIC and by many of the other

5 research partners in this room and elsewhere, and

6 really do the same kind of reduced research on

7 how the solutions are changing people's lives. 

8 And I know this is an area -- Mark and I talked

9 about this afterwards -- that we are very

10 interested in pursuing.

11 And you know, Jose can say in the

12 children's savings world they are doing rigorous

13 research with demonstration. That is one area

14 that has gotten a lot of attention, but some of

15 the broader financial capability strategies and

16 the connection to mainstream products hasn't had

17 that same attention. So, how we think about that

18 kind of thing.

19 MR. MILLER: Go ahead, Ted.

20 MEMBER BECK: I agree it was a very

21 good session yesterday, thoroughly enjoyed it.

22 But a theme I continually heard, which

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1 is encouraging, given that we have been doing

2 this for 10 years, is there were a whole bunch of

3 organizations, financial institutions, who were

4 trying to figure out how to do something beyond

5 the ROI of an individual product. You know,

6 they're trying to come up with long-term benefits

7 and solutions to different communities and also

8 working with nonprofits, and trying to figure out

9 how to make it work. You know, that was really

10 encouraging. So, we had some success stories.

11 But, looking forward, there were a

12 couple of things. One is, how do get more

13 organizations to do this? We have shone a light

14 on some folks who have created stuff. But how do

15 you get a lot more banks to do that? So, how do

16 you encourage them to do that?

17 And the second thing was technology. 

18 Everybody said, well, technology could further

19 enhance what people are doing and bring it to a

20 better scale. But there's also a whole series of

21 technology -- we're talking about fintech

22 generally here -- where it is not regulated. It

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1 might just be taking the top scores and figuring

2 out a way to do with them. So, really not

3 filtering into an overall relationship.

4 One of the things we think about in

5 the education community a lot around the whole

6 fintech question is, how do you find shelf space

7 for this value-added part of the relationship

8 versus just a bidding war? Because everything

9 that was talked about yesterday was doing more

10 for the customer base that the organizations

11 wanted to support and build. And how do you use

12 technology to do that and not just get forced

13 into a bidding war with organizations that do not

14 have the regulatory costs and requirements that

15 insured institutions have and should have? So,

16 to me, that's a big one if we wanted to spend

17 time here.

18 MR. MILLER: Bob?

19 But, before I do, if I do say so, in

20 response to your question about the BankPlus

21 program, he did say -- maybe it was in the

22 reception the night before -- he did say that it

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1 is profitable. He said it is not very

2 profitable, but it is profitable. And he did say

3 that, in the session yesterday I think he said

4 the delinquency rate was 7.4 percent, but they

5 monitor it.

6 MS. SINGLETON: It was comparable,

7 too.

8 MR. MILLER: Go ahead, Patience. I'm

9 sorry?

10 MS. SINGLETON: No, but he said it was

11 sort of comparable to the other loan products for

12 the bank.

13 MR. MILLER: And again, it's at 5

14 percent.

15 So, sorry. Bob?

16 MEMBER ANNIBALE: Thanks. I mean,

17 again, thank you. That was a great summary. I

18 think you did a very good job of putting together

19 such an interesting day.

20 I want to respond and reflect a bit

21 from Andrea's comments, too. She is always so

22 good at summarizing these things. So, I'm going

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1 to steal her notes after every meeting.

2 (Laughter.)

3 I mean, I sit next to her. She takes

4 these wonderful notes. This is nothing. I mean,

5 it's amazing.

6 MEMBER MURPHY: Bob, you have to take

7 notes in order to --

8 (Laughter.)

9 MEMBER ANNIBALE: But I scribble.

10 (Laughter.)

11 I mean, one was the concept that -- a

12 few quick things -- loss leader, I don't think

13 that what we look at, if we look at this to truly

14 serve the segments that we are concerned are

15 underserved today, that this needs to be a loss

16 leader. I don't think it needs to be a loss.

17 I think there is a need for

18 investment. There is clearly an investment, as

19 there is in any new product or segment. But

20 there are very few things like we are doing that

21 we are doing as an accepted, continued loss play.

22 And I even say that on the CRA, which

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1 you know is as archaic as it is. If I think of

2 affordable housing, I mean, look, we have the

3 largest range of affordable housing in the

4 country, which is nowhere in proportion to what

5 we need to do. But you can do it at a

6 sustainable, even a profitable level, to really

7 invest the right people against it and look at it

8 nationally, the way you look at other businesses. 

9 It just takes an investment of people and

10 technology and capital. But we do a numerous

11 amount, considering the size. And I don't think

12 that is a loss leader.

13 On all those products, I think it is

14 clearly an investment to get there. And I worked

15 with Jose for years to get KDC and the technology

16 which we spent, you know, millions of dollars,

17 right? We were introducing totally new

18 technologies, starting with what we have. But I

19 believe it can be sustainable and scalable. Is

20 it profit-maximizing in a short-term sense? No,

21 but your portfolio of investments have a great

22 range of opportunities and risks and return.

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1 And I think of many of the partners

2 that you speak of, Andrea. I know them; plus, we

3 work with them, like EARN for years and others,

4 the Mission Asset Fund, KDC. These are all

5 things that I think banks can do professionally

6 within what they do.

7 I think where it came out, a question

8 of regulations comes up regularly. There's few

9 issues on regulations that holds you back from

10 doing any of this. There's very little. I mean,

11 there are many issues on regulations, you know,

12 that colleagues can go on forever on, I'm sure,

13 and mine particularly. But it isn't around these

14 products and areas.

15 Clarification on a few things could

16 help. I mean, we went ahead with KDC as best we

17 could on clarification, and it was great that

18 what followed was a really clear guidance. But

19 it didn't hold us back from doing it.

20 And I think most of what we have

21 looked at here is about you could use regulations

22 and others, the carrot, as we have always said,

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1 not just a stick, you know. These products and

2 areas don't really count in CRA terms. Most of

3 the things that we have talked about very loosely

4 really don't count.

5 I mean, you can do the counts that

6 Bruce talks about, but you open a branch in a

7 low- to moderate-income neighborhood with no

8 products that are particularly relevant or only

9 ones that have very high fees. You get a

10 checkmark. You may not go in there, but you

11 might serve thousands of people through a partner

12 arrangement, a partnership model, where you have

13 a spoke of a legal vehicle branch, but, more

14 important, outreach models, and that doesn't

15 really count.

16 So, I think there are ways to

17 modernize and give more credit to get people to

18 do that, but just view what stops you from doing

19 anything. There really is not anything that

20 stops.

21 And last, I really will pick up, too,

22 on the immigrant challenge. And I had to sneak

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1 out at lunch to meet with the Mexican Embassy. 

2 And that wasn't sneaking out from you, you know. 

3 Excusing myself, why I wasn't there.

4 (Laughter.)

5 But, you know, we have a program with

6 32 mayors in the U.S., Cities for Citizenship. 

7 We started up with three mayors and now we've got

8 32. That is really around immigrant integration. 

9 And we have a program with the Mexican Embassy

10 and a number of the consulates around the

11 country.

12 We embedded Financial Empowerment

13 Offices served by external community

14 organizations in the consulates. And those are

15 really about ensuring that the most vulnerable

16 groups are getting the right advice.

17 Because of all the data you provided,

18 the FDIC data, for example, on the underbanked

19 and unbanked about immigrants -- those are

20 citizens and those are non-citizens -- has made

21 the business case for us with mayors time and

22 time again as to why we should accelerate that

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1 integration, and why we, ourselves, are so

2 embedded in that program.

3 So, again, thank you all for

4 everything and the meetings yesterday. But I do

5 think that the business case is one of choice and

6 investment to serve this segment. And we have

7 seen many who have shown how they are achieving

8 that.

9 MR. MILLER: Great.

10 Ester?

11 MEMBER FUCHS: So, I am so sorry to

12 have missed yesterday. It was actually my last

13 class of the semester.

14 (Laughter.)

15 So, I really would have preferred to

16 be here, frankly.

17 (Laughter.)

18 But not; it was actually fabulous.

19 So, I've just been thinking about what

20 everybody was saying and have been trying to keep

21 up with all the issues. And I've been on this

22 Committee quite some time with a number of other

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1 people here. So, I have a sort of historical

2 perspective on this.

3 I think in keeping with this idea of

4 where we are going next, I think it is important

5 for us to think about two things. Where are the

6 solutions coming from, which I think depends on

7 your articulation of the problem. And so, what I

8 see here from our Committee, we have been

9 targeting consistently low- and moderate-income

10 households and trying to improve their ability to

11 be part of the banking system.

12 So, there are two places where this

13 problem resides. It resides with the population

14 we're targeting -- they have education deficits

15 and they have income deficits -- and with the

16 banks, which have service deficits in terms of

17 what this population wants. And I'm basing that

18 on the research that FDIC has been doing on this

19 issue through the surveys, which I think is where

20 I want to sort of focus my remarks.

21 So, most of the larger banks, though,

22 are still not incentivized to provide these

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1 services, and we still haven't actually figured

2 out exactly what that formula is for populations

3 to go in and even take up the services that are

4 being offered. You know, trust and high touch, I

5 think technology is so important because trust

6 and high touch are too expensive to really bring

7 to scale.

8 So, what I'm thinking about at this

9 point is where should the interventions go and

10 who should be responsible for the interventions. 

11 Like what should policy look like? What should

12 those partnerships look like? When should the

13 solutions be coming from the banks themselves? 

14 When does it have to be really totally targeted

15 toward the population? When do we bring in

16 foundations and community-based organizations to

17 partner and school systems, which I didn't hear

18 much about, which historically have been a big

19 part of what we thought the solution was at least

20 for the population, for the customers?

21 And so, you know, I just have sort of

22 two thoughts to throw out at this point, which is

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1 I think that the incentive structure for the

2 large banks hasn't been made clear to them. It

3 still doesn't exist in a clear way to them, you

4 know, in terms of what you just articulated,

5 Robert, you know, the reasons for doing this.

6 And so, there are two ways, in my

7 mind, that that can change. One is, because the

8 problem has gotten worse, what is the silver

9 lining? It is not just low- and moderate-income

10 households now that are moving in and out of the

11 banking system and are confronting very serious

12 problems when it comes to banking. It is also

13 middle-class populations, as Jonathan pointed

14 out.

15 In the research, this is where people

16 are struggling the most, and there isn't enough

17 being done in that regard. That, it seems to me,

18 is part of the old basic mission of banking. 

19 That population is critical to the success of

20 these banks.

21 So, to the extent we can make the case

22 with data to show larger banks that it is in

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1 their business interest, business case, that is

2 one way I think we need to go at this point. 

3 Normally, I would start with the public policy

4 solutions, but, frankly, I don't know why I

5 should at this point. You know, I think they are

6 less likely to be implemented at this point, and

7 I am a pragmatic utopian.

8 (Laughter.)

9 So, I would rather see where the

10 partnerships can emerge, particularly with the

11 banks.

12 And then, on the other side, you know,

13 dealing with the populations, I think everybody

14 has clearly made the argument for partnerships

15 with community-based organizations, but that is

16 an area where research could be really helpful,

17 because what does it look like; how does it work;

18 when is it most effective? There are so many

19 different ones out there, and everybody just

20 pretty much tells their story. They do help

21 people, and we want a thousand flowers to bloom.

22 But this is sort of the last thing I'm

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1 going to say, which is, we need to bring

2 solutions to staff. So, we have to have a way,

3 especially both for the individuals and for the

4 banks, to say, here are four off-the-shelf

5 solutions that combine partnerships with

6 community organizations, technology, government

7 support funds through CRA or anything else that

8 government is offering right now, including local

9 government.

10 And you can look at this and this will

11 work for your bank, and this will work for your

12 population. I think that, given how much has

13 been done over the last 10 years and how much

14 success I think has been shown in a variety of

15 case studies, that this is the point in which the

16 data really can inform this kind of more systemic

17 solution.

18 And also, bringing in local government

19 and the school systems into this conversation

20 much more directly, where I think, in keeping

21 with what pretty much everybody is saying out

22 there now. You know, it is time for cities and

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1 states to step in. And the FDIC can lead on

2 this. It is in a better situation than anybody

3 else to do that.

4 MR. MILLER: Thank you.

5 Jose? Then, Michael. And then,

6 Martin.

7 MEMBER CISNEROS: Yes, well, Mr.

8 Chairman, reflecting a little bit on where do we

9 go from here, as you were mentioning, probably no

10 surprise, I want to talk a little bit about, I

11 think, the opportunity that we see in engagements

12 with local government.

13 Just looking back at where we've been

14 for the 10-plus years that have passed, you know,

15 more than 10 years ago, we in San Francisco

16 launched the first Bank On Program, and we were

17 followed by dozens of other cities that worked

18 very closely with local banks and credit unions

19 and partners like the FDIC and other regulators

20 to reach out to the unbanked and to get them

21 connected to SAFE Accounts.

22 We are proud that in San Francisco

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1 we've actually seen a marked decline in the

2 number of unbanked citizens in our city, but we

3 are extremely excited, going forward, on things

4 like the partnership we've done here with the

5 FDIC and with you on helping create and now

6 promote the truly SAFE Accounts that many, many

7 growing number of banks are offering across the

8 country.

9 Also, over the last few years, we have

10 seen financial coaching really get rolled out

11 one-on-one, direct engagements with low-income

12 folks to help them get ahead; by coaches provided

13 through local government programs, and, of

14 course, as we have heard already today, the

15 children's savings accounts programs like

16 Kindergarten to College, but many others that are

17 rolling out in cities and states across the

18 country.

19 Probably looking forward, I think the

20 opportunities we can see more growth on in our

21 local programs are many of the efforts around

22 households creating low-dollar savings balances. 

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1 We are about in the next few weeks to launch a

2 program, in partnership with our nonprofit

3 Earning San Francisco, to really promote and

4 match small-dollar savings in low-income

5 households in the city.

6 And we are also excited about the work

7 we want to do, again, in partnership with the

8 FDIC, around youth accounts, particularly for

9 youth under the age of 18 who are getting their

10 first paychecks, oftentimes through programs

11 connected through city governments. And we want

12 to make sure they're banked.

13 As I know we are going to be talking

14 about later today, we still find many challenges

15 in terms of finding banks and financial

16 institutions that will provide accounts for 16-

17 and 17-year-olds. So, I feel we have a lot of

18 work we could do there, but, again, cities are

19 uniquely poised to be able to roll out those

20 types of successful programs, and we look forward

21 to growing those efforts in the future.

22 MR. MILLER: Thank you.

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1 Michael?

2 MEMBER BARR: Let me just start by

3 echoing both what Ester said and what Jose said

4 about state and local engagement. I think it is

5 quite promising.

6 Let me just, for my part, say two

7 things. One is the FDIC has been producing just

8 a lot of very, very high-quality research and

9 data over the last number of years. It probably

10 has not invested as much in communicating that

11 data and making it usable and helpful for others

12 in the world, both banks and nonprofit partners

13 and other researchers.

14 So, one area I would love to see in

15 the looking forward category would be having the

16 FDIC really invest in dissemination of that

17 research, communications about the research,

18 engagement with partners about the research. I

19 think that would be quite a valuable and useful

20 investment.

21 I will say in that regard, I was

22 sitting in this House hearing yesterday, and it

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1 struck me during that conversation that it would

2 have been useful if some of the Members had the

3 facts from your community banking research during

4 the course of that conversation in front of them.

5 (Laughter.)

6 The second thing I want to say is

7 about a relatively-newish area of research that I

8 hope that the FDIC engages in and that I think

9 would benefit FDIC-insured institutions and the

10 public. And that is around small business

11 access-to-credit issues on both the positive and

12 negative side.

13 That is, on the positive side, what's

14 going on with access to credit for small

15 business? What are ways to improve that access

16 to credit, particularly for minority-owned

17 businesses, for microbusinesses that are so

18 important to self-employment today, which I meant

19 earlier about the changing structure of work. 

20 And I would think that, given the growth of self21 employment and microbusinesses as supplements to

22 wage income, that it is quite critical to figure

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1 out ways that the FDIC-insured institutions might

2 be better at providing credit for micro and small

3 business and self-employment.

4 And on the negative side, there has

5 been some expansion of small business credit that

6 is less than protective. So, some technology

7 companies have done a great job in expanding

8 access to credit in Safeways and others have

9 engaged in access to credit that is really quite

10 unsustainable and not based on the business'

11 ability to pay or their growth practices, but on

12 other factors.

13 So, I think that engaging the FDIC's

14 activities and perhaps the work of this Committee

15 in this area I think would be quite helpful.

16 MR. MILLER: Thank you.

17 Martin? Thank you.

18 MEMBER EAKES: So, I wanted to pick up

19 on some of Ester's thoughts, which is sort of

20 moving to the dark side.

21 (Laughter.)

22 MEMBER FUCHS: I'll leave you the dark 

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1 side.

2 MEMBER EAKES: The darker side.

3 (Laughter.)

4 I mean, yesterday was wonderful and

5 felt good because we were talking about

6 solutions. But sometimes, if we do the micro7 solutions, we are not always keeping the picture

8 of the big picture.

9 And so, I think when we talk about

10 scaling of solutions, we should also talk about

11 scale of harmful practices. While we spent a lot

12 of time yesterday on savings accounts and access

13 to insured deposit accounts, the level of

14 overdraft fees has not really gone down in the 10

15 years of this Committee. I think it's gone up. 

16 And so, let's just think about that for a moment

17 in relation to some of the key facts that we saw

18 yesterday.

19 We are still somewhere in the range of

20 $30 billion per year. The United States has 125

21 million households. So, if we said that the fees

22 fall on 30 percent that we consider to be

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1 unbanked, or I guess it would be the underbanked,

2 it's over $1,000 per household per year that's

3 extracted just in overdraft fees on checking

4 accounts.

5 So, when we were saying that a measure

6 of resilience for households, that 50 percent of

7 American households do not have even $400 or $500

8 to withstand even some sort of event, traumatic

9 event, we are having our sector that we're proud

10 of, banks and credit unions are taking twice that

11 amount out of households that are impacted each

12 and every single year. And these are not service

13 fees. They are penalty fees for tripping past

14 something that we could avoid, particularly on

15 point-of-sale debit overdrafts.

16 So, I guess I don't want to be the

17 downer completely here, but when we have -- and I

18 will mention them -- Wells Fargo and Chase

19 collect somewhere between $1 and $2 billion per

20 year in overdraft fees on checking accounts;

21 whereas, Citibank has no overdraft fees on their

22 checking accounts and Bank of America has no

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1 overdraft fees on the point-of-sale, the debit

2 card, the largest quantity.

3 So, it may be that we can't really

4 look to government, to federal policy, for the

5 next few years. And so, we revert, thinking

6 about state and local. For some of us, state is

7 not looking a whole lot better.

8 (Laughter.)

9 But there is also policy that is made

10 by large institutions. I mean, we don't often

11 think of that as policy. But, when Bank of

12 America or Wells or Chase particularly, who have

13 so many consumer accounts, when they change

14 policy in very incremental ways, it really

15 literally impacts tens of millions of families

16 across the country. And because the FDIC and the

17 OCC and others have such direct access, we've got

18 to be talking, I think, about how do we police

19 our own; how do we incent and hold accountable?

20 So, it is frustrating to me that we

21 have made so much progress. We've got Bank On

22 that really has wonderful products, but if the

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1 folks who are getting credit for doing an account

2 that is really responsible are for 90 percent of

3 their business really doing something that is

4 more harmful than the good that is coming out of

5 their specialty accounts, we are only pretending

6 that we are making progress; we are actually not. 

7 We are not progressing. So, overdrafts is one

8 category.

9 I know we are going to talk about

10 mortgages. Let me just say that, when we get to

11 mortgage credit, the exclusion of Black and

12 Latino families from the home mortgage market is

13 greater today than it has been in any time in the

14 last 20 years.

15 So, on this one, we can feel really,

16 I can feel gratified that we have with Dodd17 Frank, assuming that it persists, largely

18 eliminated predatory mortgage practices in the

19 United States in the mortgage arena. It has

20 pretty much gone away, not all, but almost all.

21 And yet, on access to credit, we

22 literally, because of pricing, because of

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1 practices of doing overlay, because of overreach

2 in some places, overreaction, if you have a

3 credit score below 680, it is very unlikely that

4 you are going to be able to get an easy home

5 mortgage, either because of restrictions directly

6 or because of the pricing that has made it

7 unaffordable for lower-income families. So,

8 there is a lot that we can harken and be

9 optimistic about.

10 And then, one more in just sort of

11 putting out things for us to work on going

12 forward, the role of student debt right now is so

13 catastrophically bad that we haven't really

14 grappled with it at all. It is $1.4 trillion now

15 of student debt. Much of it was for useless

16 education that didn't really produce a lot of

17 gain for the people who incurred the debt. And

18 like home mortgage debt, it is one of the only

19 debts that can never ever be discharged in

20 bankruptcy. So that once you make that mistake,

21 you are trapped with it for the rest of your

22 life.

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1 And so, I think on all three of those

2 points, what I am really saying is, as we think

3 about the solutions that we see with someone like

4 BankPlus, which was wonderful, I will say, there

5 is no possible way you can make money for the 5

6 percent interest rate loan of $500. I can just

7 tell you.

8 (Laughter.)

9 I don't care what anybody says; that

10 is not possible.

11 On the other hand, as Bob says, if you

12 are investing and saying this is something that

13 young people with others will eventually have a

14 longer-range payoff, I can understand it.

15 So, we have a lot of work left to do

16 on overdrafts. It is just obscene the level of

17 penalties that are taking out of low-income

18 families.

19 Home mortgages, if we don't recognize

20 that stepping into the middle class happens

21 through homeownership and that the households

22 that we're most concerned about are almost

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1 excluded currently.

2 Thirdly, student debt is providing a

3 millstone around low- and moderate-income

4 households for the very product that should be

5 advancing you.

6 In the big picture we have a lot of

7 work left to do, and the storm clouds on the

8 horizon just don't look great.

9 How's that for ending with on a high

10 note?

11 (Laughter.)

12 MEMBER BARR: That is not nearly as

13 dark as I thought you were going to be.

14 (Laughter.)

15 MR. MILLER: Don't encourage him,

16 Mike, on that.

17 (Laughter.)

18 MEMBER MURPHY: So, thank you, Martin,

19 for always making sure that we are not too far

20 celebrating our own successes.

21 (Laughter.)

22 At the end of the day, real challenges

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1 still exist.

2 But I want to say two quick things as

3 I am listening, and I could not have agreed more

4 with the things you described.

5 When I think about the BankPlus

6 program, I know my cost structure could not

7 survive with a 5 percent interest rate. And so,

8 it is not for me to declare whether that is good

9 or bad. It is mine to say they made a choice,

10 and their choice may be more about mission than

11 margin, but they made a choice. And I always

12 support people who make a choice that they are

13 going to serve their community in a way that they

14 believe in some way is sustainable for them or

15 adds value to the community.

16 And so, as I think about my own

17 product, it is very similar to a 17-to-24-percent

18 interest rate, given our cost structure, I am

19 very comfortable with suggesting that that is not

20 only sustainable, but it is one that we made a

21 choice. We made a choice to build a product. We

22 made a choice to say this is how we are going to

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1 choose to serve our community.

2 And so, oftentimes when we think about

3 the role of this kind of Committee, you know, to

4 offer ideas and solutions, I think sometimes that

5 isn't helpful, just to be very frank. I don't

6 know that that is helpful. At the end of the

7 day, what I think is more helpful is to talk

8 about making a choice and figuring out, in making

9 that choice in the context of your institution,

10 how you, in fact, can deliver on making the

11 choice.

12 And so, as I listened to Bob, you

13 know, at the end of the day, it is, then, who you

14 are as an institution, and where this Committee

15 can be helpful is to challenge our articulation

16 of what that is. So, who are you as an

17 institution around serving these communities? To

18 challenge and, then, to say, what are you going

19 to do about that?

20 And when you are able to do those two

21 things -- oh, by the way, I'm going to incent you

22 to focus on it -- then, the models that get built

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1 are based on the context of the capability and

2 the commitment inside of these institutions.

3 And so, sometimes I think about I am

4 blessed to work for the company that I work with

5 because, at the end of the day, we did a lot of

6 myth-busting. We helped people understand.

7 I would tell you today inside banks,

8 if you talk about who the low- and moderate9 income people are, they don't know who the hell

10 that is.

11 (Laughter.)

12 They think that is just poor

13 minorities. Let's just be very honest. They

14 think that is just poor minorities. But the fact

15 of the matter is most of our employees who work

16 in our company are low- to moderate-income. And

17 when you start to talk about that in that

18 context, you, then, start to get a different

19 mindset around making a choice.

20 Now I'll get off my soapbox.

21 MEMBER BARRERA: Jonathan, I just want

22 to make a quick point.

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1 MR. MILLER: Sure, Janie.

2 MEMBER BARRERA: I just wanted to

3 follow up on what Michael said about

4 entrepreneurialism and small business and how the

5 FDIC could look forward towards something like

6 this. Because, right now, in our Administration

7 jobs, jobs, jobs, right? Everything is being

8 surrounded -- I mean, that's the mantra that is

9 out there. And where do jobs come from? Small

10 businesses.

11 So, if we could come up with that

12 model, that program, of how do we do that and

13 bring it to scale -- I know that CDFIs across the

14 country are working towards this as well -- but

15 for us to look at more research on those CDFIs

16 and what they are doing, to be able, then, to

17 help the industry as well in terms of creating

18 these jobs in small businesses.

19 MR. MILLER: Alden, I just do know

20 we're somewhat behind schedule, but go ahead.

21 MEMBER McDONALD: I am going to make

22 mine very short and I am going to try to pick it

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1 up to a whole other level.

2 And in my business, a small community

3 bank, we have to try our best to look at not only

4 the big picture, but how to look at the glass

5 half full. So, I would like to turn the

6 conversation to the half-full side and, also,

7 address the question of where do we go from here.

8 I do feel that my institution has

9 benefitted from a lot of the discussion that we

10 have had over the years. I think a number of

11 financial institutions have benefitted and have

12 changed their methodology in approaching some of

13 the issues that we have talked about here. So, I

14 think the work that we have done over the last 10

15 years has been very valuable in a number of

16 different ways.

17 I have seen where the FDIC and other

18 regulatory agencies have addressed and focused-in

19 on accountability through its examination

20 programs, et cetera. And I have seen a number of

21 banks that perhaps would not have been involved

22 in trying to help solve this problem that exists

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1 in our communities across the country.

2 I see a win where technology has

3 provided a lot of, I think a solution to some of

4 the problems that we have been talking about. 

5 So, I think scale is very important. On riding

6 the whole technology wave, we have not only scale

7 in helping individuals to become bankable, but we

8 have scale with technology and coaching. And

9 we've seen that through a number of different

10 products and services where we can coach

11 financial literacy through the technology

12 products.

13 So, to sort of zero-in on where do we

14 go from here, I think because of the technology

15 changes that we have seen with a lot of the

16 products that financial services are offering, I

17 think it may -- and we've talked about this on a

18 number of occasions -- to begin just reviewing

19 the policies of the regulatory bodies to make

20 certain that, because of changes in technology,

21 we are not going to sort of slow that process and

22 that progress down to where it will hurt the

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1 growth of what we're attempting to do.

2 The second piece is that it is very

3 obvious that we have to get the financial

4 literacy and education component in the school

5 system as best and as early as we can, because

6 all of the research that we have done and all of

7 the actual progress that has been made, we

8 continue to hear that the earlier we can get the

9 financial literacy into the system, it is going

10 to flesh out some of the issues that we are faced

11 with. And that is the only way we are going to

12 get ahead of the curve.

13 So, just to be specific, it may not be

14 possible on a national level, but I think local

15 banking organizations, local organizations can

16 help facilitate maybe some local, some state

17 legislation that can incorporate the whole

18 education piece in the system at an early age. 

19 And I think that is a focus that we need to focus

20 on going forward and perhaps find a solution

21 there.

22 And the last piece -- and I'll shut up

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1 after this -- is that we have enormous amount of

2 fintech products and companies coming on stream. 

3 And we also talked about this Committee in

4 several occasions, that we have to monitor to

5 make certain that we don't have another wave of

6 technology that is going to produce high-priced

7 products for a low amount of income.

8 As Bruce mentioned, most of our

9 employees in the banking business falls within

10 that category. So, when we are designing all of

11 these products, we have found that we started

12 designing it for the LMI, but for the most part

13 it is benefitting a wider range of customers and

14 individuals in our country.

15 I would like to just thank the FDIC

16 once again, thank Jonathan and his Committee, for

17 all of the work that has been done to at least

18 give us baselines and to give us direction for

19 how do we get to the next step.

20 Thank you.

21 MR. MILLER: I think we're out of

22 time.

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1 (Laughter.)

2 CHAIRMAN GRUENBERG: Let me say,

3 before we conclude the session, as usual, it

4 seems to me you all have given me something to

5 think about, and we'll give it some thought and

6 we'll come back to you at the next meeting.

7 Why don't we take a quick break?

8 Jonathan, do you have anything?

9 MR. MILLER: Yes, I was going to say

10 maybe until 10 minutes, to 11:05.

11 (Whereupon, the above-entitled matter

12 went off the record at 10:53 a.m. and resumed at

13 11:09 a.m.)

14 MR. ERNST: Thank you, Mr. Chairman.

15 As we have discussed around this

16 table, branch networks are changing. Branches

17 are opening and closing with regularity, perhaps

18 more the latter in recent years than the former. 

19 The function and structure of bank branches are

20 changing.

21 And I'll just say, by brief way of

22 introduction to this session, that we have seen

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1 considerable attention being devoted to the

2 impact of these changes on access to bank

3 services, particularly bank branch services. 

4 There have been a number of popular media

5 accounts. A number of researchers and commenters

6 have turned their attention to this issue.

7 And so, we have developed an interest

8 in understanding how we should view the import of

9 these changes. There are many ways to ask this

10 question. Kris Rengert has thought about one

11 particular aspect: how to evaluate neighborhood

12 access to bank branches, and particularly, how to

13 identify areas where concerns about branch access

14 may be most pronounced. He in his presentation

15 will provide more context for our work and

16 explanation of the approach that he has

17 developed. He will offer some examples of how

18 the approach works in practice, and we will look

19 forward to a discussion of the benefits of this

20 approach and the potential applications with the

21 members of the Committee.

22 With that, all right.

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1 MR. RENGERT: Thank you, Keith, and

2 good morning to you all.

3 So, our household surveys documented

4 the importance of bank branches to consumers,

5 especially lower-income consumers. For many

6 consumers, branches are the primary means through

7 which they interact with their accounts.

8 Move forward to the next slide.

9 Specific subgroups are even more

10 likely to use bank branches as their primary ways

11 to access accounts. So, as many of you are

12 aware, for account-holders and families with

13 incomes under $30,000, over 40 percent rely on

14 bank branches. For account-holders with less

15 than a high school diploma, over 50 percent

16 depend on bank branches. Account-holders age 65

17 or older, nearly 50 percent rely on bank

18 branches, and account-holders residing outside of

19 metropolitan areas or what we might consider

20 rural by some definitions, over 40 percent depend

21 on bank branches as their primary way to access

22 their accounts.

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1 At the same time, although recognizing

2 that many consumers depend on bank branches,

3 we're also aware that the number of bank branches

4 has been declining, from 2011, just over 98,000

5 branches; 2016, nearly 92,000 branches, a loss of

6 some 6300 branches, or 6.45 percent.

7 And this decline is not spread evenly

8 across the United States. Some areas and some

9 neighborhoods are impacted more than others. So,

10 with that in mind, it is important to be able to

11 accurately identify areas with low or limited

12 access to bank branches. Incorrectly identifying

13 areas as lacking access can distract us from

14 where the real problems exist.

15 Ultimately, we need to be able to

16 accurately identify areas with limited access,

17 ideally, pinpointing those that not only have

18 lower access, but that are also populated by

19 residents who are particularly reliant upon bank

20 branches for accessing their accounts. And that

21 is the focus of this presentation, to discuss the

22 strategy we have developed to that end.

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1 So, a primary motivation behind our

2 effort to develop a refined strategy for

3 assessing neighborhood access to bank branches is

4 to be able to more precisely identify

5 neighborhoods with limited access. This is

6 important for our efforts and others' efforts, to

7 further economic inclusion, to improve consumers'

8 access to bank accounts. And as we have

9 discussed, for many vulnerable populations,

10 tellers are a preferred strategy for accessing

11 accounts.

12 So, we are particularly interested in

13 identifying specific types of areas, areas

14 without access to bank branches at all, areas

15 without bank branches, and areas vulnerable to

16 losing bank branches, and, then, finally,

17 intersecting those with areas with concentrations

18 of vulnerable populations. This is particularly

19 important in the context, which is likely always

20 to be the case, of there being very limited

21 resources available to addressing these issues.

22 We find strategies really matter with

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1 limited resources. So, moving on to our

2 strategy, we use Census Tracts as the basic data3 building block for neighborhoods, as do many

4 researchers. And then, we use a radial

5 determination of bank branch access for each

6 Census Tract in its local context, and we will

7 discuss exactly what that means in a moment.

8 Our main contribution is a strategy

9 for using the local distribution of residents and

10 bank branches to identify a locally-defined

11 distance for the radial determination. So, we'll

12 now talk about what that means. I will describe

13 it here and, then, we will walk through it

14 graphically in a few slides.

15 So, rather than assuming that only

16 consumers in the Census Tract where a bank branch

17 is located can access that bank branch or

18 imposing an arbitrary radial distance to

19 associate bank branches with Census Tracts, we

20 can look at a metropolitan area and identify the

21 distance just for that particular metropolitan

22 area at which a particular percentage of

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1 consumers live from the closest bank branch to

2 their Census Tract.

3 Generally, we might think that

4 residents of very densely-settled areas might

5 encounter bank branches closer to home than

6 residents of more sparsely-populated areas. We

7 might think of New York City versus rural

8 Arizona. There is going to be a different

9 distance at which one might expect to encounter

10 the closest bank branch.

11 So, we look at individual metropolitan

12 areas and the Census Tracts within them. We

13 calculate the distance from each Census Tract's

14 population-weighted centroid -- I could go into

15 that if you would like, but it is the middle of

16 the Census Tract -- to the nearest bank branch. 

17 And then, we rank-order the Census Tracts in that

18 area from the shortest distance, the Census Tract

19 with the closest bank branch to its centroid to

20 the one with the longest distance, the farthest

21 from the closest bank branch.

22 And then, looking at the cumulative

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1 population, we can identify the distance at which

2 a given percentage, say 75 percent or 90 percent,

3 of that metro area's population lives from its

4 closest Census Tract. That distance is the

5 locally-determined distance threshold, or the

6 LDT, as we'll call it for short here.

7 So, if we take all of the Census

8 Tracts in a metropolitan area, say the Chicago

9 Metropolitan Area, and we rank-order them -- so,

10 we start and the top row will be the Census Tract

11 that has the closest bank branch to its centroid,

12 and the last one is the Census Tract that has the

13 farthest bank branch. And then, one of the

14 columns is the population, the share of the

15 population in each Census Tract. It's

16 cumulative.

17 We can move down that table and

18 identify the distance at which 75 percent of the

19 population is above that line, so has at least

20 one bank branch within that distance. So, for

21 Chicago, which we'll talk about in a moment --

22 spoiler -- it is .68 miles. Seventy-five percent

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1 of the population of the central Chicago

2 Metropolitan Area has at least one bank branch

3 within .68 miles of its centroid.

4 MEMBER McCOY: And, Kris, I take it

5 that this distance which is -- what? -- .68 miles

6 for Chicago --

7 MR. RENGERT: Yes.

8 MEMBER McCOY: -- might be different

9 for Joplin, Missouri.

10 MR. RENGERT: Correct. I don't know

11 the one for Joplin, Missouri, off the top of my

12 head.

13 (Laughter.)

14 But Flagstaff would be about six

15 miles.

16 MEMBER McCOY: Oh, wow.

17 MR. RENGERT: So, it varies

18 dramatically.

19 MEMBER McCOY: So, it varies quite a

20 bit?

21 MR. RENGERT: Correct. And that's

22 just looking at metropolitan areas. We can also

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1 do this for non-metropolitan areas. So, we can

2 look at portions of any individual state that are

3 outside of metropolitan areas or micropolitan

4 areas. And Alaska would be the obvious outlier

5 where it is about 23 miles.

6 But, yes, so that, indeed, is the crux

7 of what we believe we are bringing to the table,

8 is rather than looking at the whole country and

9 saying, well, if there's a bank branch within two

10 miles of your Census Tract, then you have access

11 or you don't have access, well, two miles means

12 something very different in Manhattan. You're

13 not going to find any area in Manhattan that

14 doesn't have access to a bank branch by that

15 metric.

16 MEMBER FUCHS: Are you actually

17 plotting the locations of the banks in this or

18 not?

19 MR. RENGERT: Yes.

20 MEMBER FUCHS: Okay. That has to do

21 with the centroid, right?

22 MR. RENGERT: Well, the centroid has

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1 to do with the Census Tract, and the Census did

2 that. And then, we plot the location of each

3 bank branch and, then, identify the distance

4 between the centroid of the Census Tract and the

5 closest bank branch.

6 MR. ERNST: I think the Committee is

7 getting a very good grasp of this method,

8 remarkable from the text slide. I want to

9 suggest, if we get into some of the graphic

10 examples, it will really come together for the

11 rest of us.

12 MEMBER LEVERE: Who came up with the

13 word centroid?

14 MR. RENGERT: We'll blame Census for

15 that. That's a tried-and-true word.

16 So, again, this LDT -- and we'll focus

17 on the 75 percent measure, but we will also talk,

18 you could also look at 90 percent -- we use that

19 to identify for an given metropolitan area the

20 Census Tracts and their resident populations that

21 fall into two different types of areas: Tracts

22 that do not have reasonable access to any bank

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1 branches, so they do not have even one bank

2 branch within that reasonable distance for their

3 area, and Tracts that have exactly one bank

4 branch within that reasonable distance. And

5 these should be on our radar because they are at

6 particular risk of having their branch closed. 

7 So, you should be aware of that.

8 We do this for each metropolitan area

9 across the country. We treat the central

10 portions of metropolitan areas distinctly from

11 the outlying portions. This is by definitions

12 that the OMB does and Census does. It is a

13 convenient way of looking at it because the outer

14 portions of metropolitan areas are, by their

15 nature, less densely populated than the central

16 portions, but they are still economically

17 integrated.

18 So, we can look at the city of Chicago

19 for an example. Here's what we're talking about: 

20 so, the map is showing Tracts of lower using the

21 75 percent LDT. For its central counties within

22 the metropolitan division of the Chicago

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1 Metropolitan Area, here the gray outline is

2 showing just the city of Chicago, which I think

3 folks are probably more familiar with than the

4 entire metro regions. We just focus on that.

5 The red indicated Tracts are those

6 that have zero branches within the LDT, and the

7 orange shaded branches are those that have

8 exactly one bank branch within the LDT of the

9 Census Tract. And the green are those that have

10 more than one.

11 MEMBER ANNIBALE: Can I ask something

12 really simple, though?

13 MR. RENGERT: Sure.

14 MEMBER ANNIBALE: If we use the Census

15 Tract like I think in Chicago, and the University

16 of Chicago takes up a whole chunk of land. Any

17 other sort of parks, things like which --

18 historic, Manhattan has a big park.

19 MR. RENGERT: Uh-hum.

20 MEMBER ANNIBALE: Does that in any way

21 -- if we see a gap, it may just the big

22 institutions, government buildings.

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1 MR. RENGERT: So, that's addressed in

2 two ways. One, explicitly in the methodology

3 because we are using the population-weighted

4 centroid.

5 MEMBER ANNIBALE: Okay.

6 MR. RENGERT: The centroid is not the

7 geographic centroid. The geographic centroid

8 would just say, okay, what are the XY

9 coordinates; what's the middle of the centroid? 

10 The population-weighted centroid, the Census is

11 able, because they have their really cool data

12 that nobody else gets, can look at exactly where

13 each household is in terms of the city blocks

14 that they are on and can identify what the

15 center, population-weighted center of a Census

16 Tract is. So, if there is a large park where

17 there is no population, that is not included. 

18 That is set aside from that calculation. If

19 there are dormitories in one block where the

20 population is, that's going to be included in the

21 weight. But where there are classroom buildings

22 and even the quad where nobody lives, that's not

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1 going to be included. So, that's the explicit.

2 And then, implicit in terms of how we

3 apply this method -- and I will get to this in

4 more detail later -- this is the starting point. 

5 So, our focus here is on identifying areas that

6 just objectively looking at them have lower

7 geographic access to bank branches than other

8 areas within the metro area, but it is a starting

9 point. And then, from there, where you identify

10 areas like the red on this map, then you would go

11 in and look at them. And there's lots of other

12 data, locally-determined data and Census data

13 that might, then -- we might set one aside and

14 say, oh, well, this, you know, a prison where

15 people live, but it's not. It shouldn't weigh

16 where we put bank branches or something out

17 there, et cetera.

18 MEMBER EAKES: So, it can vary from

19 like 150,000 to 750,000 per Census Tract

20 population?

21 MR. RENGERT: There is significant

22 variation, and there is some adjustment each

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1 Census and even between Censuses, but --

2 MEMBER EAKES: Does that have any

3 implication for this? Just that some of the

4 Census Tracts would be one-fourth the population

5 of others?

6 MR. RENGERT: The fact that it is one7 fourth of the population shouldn't because we're

8 using the Census Tract to build the distance. 

9 So, a Census Tract with a small population will

10 not add much to the cumulative population in

11 terms of when we determine what that distance is. 

12 But, ultimately, that again gets back to, when we

13 then go in to look at areas that are identified

14 as very low access or low access, if there is a

15 very large Census Tract with a very small

16 population, perhaps that would take less of our

17 attention than a more densely-populated Census

18 Tract that is identified as having low access.

19 MEMBER WEICHER: Following up on that,

20 someone born and raised in Chicago when Illinois

21 was a unit banking state, this map would have

22 been red, period, except right around downtown.

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1 (Laughter.)

2 What you've got in the far northwest

3 of the map, the orange Tract is O'Hare --

4 MR. RENGERT: Uh-hum.

5 MEMBER WEICHER: -- which has a few

6 people living in it. And the far southeast side,

7 the big orange Tract, there's a lake, not Lake

8 Michigan. It's Wolf Lake. And next to that

9 you've got, I think, a forest preserve. While

10 the typical Tract has about 4,000 people in it,

11 some of them, it's odd; they are very oddly

12 located 4,000 people.

13 MR. RENGERT: Uh-hum. Right.

14 MEMBER WEICHER: I would imagine

15 you're going to get the same kind of comments

16 that you've just been getting for any city, but

17 the idiosyncrasies tend to look large in a map

18 like this.

19 MR. RENGERT: Yes. Yes, definitely. 

20 So, the Tracts where the population is located in

21 a weird place will be incorporated into the

22 methodology. Where there is a lake or where

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1 there is an airport would require some

2 familiarity. So, if an area jumps out as being

3 of concern with regard to access to bank

4 branches, then we would go in and look, and we

5 can apply, as we'll see, we can apply other data

6 to this as well that, then, makes it apparent

7 whether an area really is of concern or just

8 happens to be located far from the nearest bank

9 branch.

10 MEMBER EAKES: We have one branch at

11 the bottom of the lake, it appears.

12 (Laughter.)

13 MR. RENGERT: But the entire Tract

14 does not -- the lake occupies a lot of it, but

15 not all of it.

16 So, all right, let me move quickly on. 

17 So, that was a quick introduction to what the LDT

18 looks like, what it looks like in the city of

19 Chicago.

20 And so now, for context, I want to

21 sort of compare that to other strategies that

22 have been used and are frequently used in the

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1 press and elsewhere.

2 Neighborhood access to bank branches

3 is often discussed outside of the FDIC. And we

4 believe it is important to move the conversation

5 towards more accurate and more reliable

6 strategies for assessing neighborhood access to

7 bank branches.

8 Existing analytic strategies

9 frequently focus on the Census Tract where the

10 zip code where a bank branch is located and

11 identify Tracts as having low access if there's

12 no branch within the Tract. So, a Tract with no

13 branch in it doesn't have access to bank

14 branches. Those that have bank branches in them

15 do have access.

16 Other strategies identify branches

17 within a fixed radius of the center of the Census

18 Tract. So, again, a radial measure like what we

19 were talking about, but they will pick one radial

20 measure and they will say two miles and apply it

21 to the whole country or to multiple states.

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1 Tract strategy, as we call it, the strategies

2 that look at whether or not there is a branch in

3 a Census Tract and the Tract has access to a bank

4 branch if there is one and does not if there is

5 not. We argue that this underestimates the

6 population in the spatial area served by a bank

7 branch, sometimes dramatically.

8 So, on this map we're seeing, this is

9 a subset. It happens to be Chicago, but that is

10 less relevant. You are looking at Census Tracts. 

11 And the green dots are the locations of bank

12 branches. And for purposes of illustration,

13 we're going to focus on the large green dot in

14 the middle of the map.

15 So, the branch-in-Tract methodology

16 assigns each bank branch to the Census Tract

17 where it is located. Because this particular

18 bank branch happens to be located on the north

19 side of the street, that is the southern boundary

20 of the Census Tract that is shaded with the

21 crosshatch, the bank branch is assigned to that

22 Tract. And it is hard to see on the slide, but

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1 there is a small dot right next to the big dot. 

2 There's actually two branches that are on that

3 border, both on the north side of that border.

4 So, the branch-in-Tract strategy says

5 that that shaded Tract has two bank branches in

6 it. So, it is pretty well-served. And the

7 Census Tract on the other side of the street has

8 no bank branches in it. So, it does not have

9 access to bank branches.

10 MEMBER ANNIBALE: I only want to

11 mention that I have been in meetings where people

12 have shown this and said, we have to get the

13 branch on the other side of the street.

14 (Laughter.)

15 There are CRA examiners that can't

16 look across the street. They have to say it is

17 on one side or the other. So, I mean, it can be

18 literally taken.

19 MR. RENGERT: If you think it's hard

20 for CRA examiners, imagine the poor consumer who

21 can't walk across the street.

22 (Laughter.)

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1 MEMBER ANNIBALE: But they might live

2 on the other side of the street.

3 MR. RENGERT: Indeed.

4 MEMBER FUCHS: Well, in New York they

5 won't walk across the street; the elderly don't.

6 (Laughter.)

7 MR. RENGERT: So, to further

8 illustrate that point, as we are looking at

9 access, maybe the shaded Tract that has two bank

10 branches in it is a low-income Tract and maybe

11 the one across the street is upper-income, or

12 vice versa. Depending on what we're looking at,

13 the purpose of what we're looking at, why we are

14 looking at access, this matters. So, hence, the

15 need for a more sophisticated strategy.

16 (Laughter.)

17 So, if we apply this example, your

18 example, sir, about the city of Chicago, this is

19 what the city of Chicago looks like if you apply

20 the branch-in-Tract strategy. It is still pretty

21 red.

22 So, on this map all of the Census

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1 Tracts in red have zero bank branches within

2 them. All of the Census Tracts in orange have

3 exactly one branch. And this is the same coding

4 structure that we used before.

5 So, the branch-in-Tract method, it is

6 an accurate representation of whether or not

7 there is a branch in an area, but what we are

8 suggesting is it is not an accurate measure of

9 whether there is access to bank branches in an

10 area. And that's an important distinction, one

11 that we like to make.

12 So, literally half the population,

13 50.1 percent, over half, of the city of Chicago

14 lives in a Census Tract that does not have a bank

15 branch in it. Another quarter lives in a Census

16 Tract that has exactly one bank branch in it. 

17 So, on the face of it, this would suggest that

18 there is a huge problem.

19 But we looked at the map earlier. It

20 shows that, actually, if you apply the LDT

21 strategy, it is a much smaller share of Chicago

22 that actually has a problem. And to illustrate

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1 that, literally nearly 900,000 people, as we see

2 highlighted in red, nearly 900,000 people live in

3 Tracts with no branch, the red Tracts, but that

4 are within a half-a-mile of a branch. So, these

5 are folks that don't have a branch in Tract, but

6 are within relatively close access to one. Or,

7 if we want to hone that in a little bit, just

8 over 200,000 people live in a Tract with no

9 branch, but are within a quarter-mile of a

10 branch. It just doesn't happen to be in the

11 Tract.

12 So, other strategies that have been

13 used include radially-determined branch access,

14 as we have discussed a little bit. Some

15 researchers use a radial distance from a Tract

16 centroid of one mile, two miles. In this case,

17 the radius around the same bank branch that we

18 looked at before is about one mile. And rather

19 than with the branch-in-Tract strategy that

20 suggests that that one red shaded Tract is the

21 only Tract served by that bank branch, now we see

22 that 15 Census Tracts can be served, if we use

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1 that one-mile radius, about a one-mile radius.

2 But, picking an arbitrary distance, as

3 some researchers have done when assessing

4 neighborhood branch accessibility and applying it

5 to multiple areas, is a problem, as we described

6 before. That New York City versus Flagstaff,

7 Arizona, two miles means a very different things

8 in different places.

9 So, we can calibrate the LDT. We

10 focus on 75 percent, but we might also look at 90

11 percent. So, as the radius gets smaller, which

12 means as you are moving to a -- the lower the

13 threshold percentage, so moving from 90 percent

14 to 75 percent, the shorter the distance that is

15 used to identify Tracts within the threshold. 

16 And thus, what we are really focusing on is areas

17 that are outside of the threshold. So, the

18 larger that area -- the smaller the areas, the

19 larger the area that is left outside of -- sorry. 

20 The more --

21 MR. ERNST: I think the analogy here

22 is you've got a tuning knob.

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1 MR. RENGERT: Yes.

2 MR. ERNST: And you can decide how

3 sensitive you want this measurement to be. By

4 adjusting this measurement, you decide do we want

5 to have the areas that really just have the

6 lowest access to bank branches or do we want to

7 dial it back and capture maybe more areas, and

8 some of them may have a little bit more access,

9 but we can make the adjustments between these. 

10 And exactly which pairs with which number --

11 MR. RENGERT: Yes.

12 MR. ERNST: -- I don't think is

13 critical.

14 MR. RENGERT: Thank you.

15 So, again, here, let me just look on

16 the map instead of my notes. So, the 75 percent

17 LDT is the .68 miles that we talked about before

18 on the map of Chicago. The 90 percent LDT is the

19 one mile that we just looked at in the example.

20 The teal-colored radius is the .68

21 miles, and you can see that that's five Census

22 Tracts that are included within that distance. 

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1 When we move to the 90 percent LDT, we've got 15

2 Census Tracts.

3 The dial analogy is good. Depending

4 on what we are looking at, we can move it. We

5 can make it more precise, less precise. If we

6 are trying to identify broadly areas that have

7 low access to bank branches, we might use one

8 number. If we are trying to look specifically

9 at, for instance, populations that have very low

10 mobility, we might turn the dial and be more

11 interested in folks that have an even shorter

12 distance where they don't have an access to a

13 bank branch.

14 MEMBER EAKES: What is your intuition

15 of why 75 versus 50? Once you pick a standard,

16 it actually has a lot of default.

17 MR. RENGERT: That is correct.

18 MEMBER BARR: That is the basic

19 problem with it, you know, the radius reaction.

20 MR. RENGERT: Yes.

21 MEMBER BARR: You can say that it's a

22 percentage, but it just ends up being how far you

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1 think people should walk.

2 MEMBER ANNIBALE: Or is there public

3 transport in that city or not? In Manhattan or

4 New York, you would say there's a million ways to

5 go.

6 MEMBER BARR: You kind of want to have

7 a different measure depending on the commuting

8 standard of that city or that community, or even

9 that subdivision within the city.

10 MR. RENGERT: Right.

11 MEMBER BARR: Do people normally walk

12 to work or walk to the bank or do they drive?

13 MR. RENGERT: Yes.

14 So, as we use this tool, or for

15 whatever reason, if we are doing case studies and

16 we are looking at a particular area, that is

17 something that can be done. The data exists. We

18 can do that. It is not realistic to do that sort

19 of looking across the whole country. But, if we

20 are looking at Chicago and we are identifying

21 areas where -- you know, one of the maps I will

22 show identifies areas that both have low access

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1 to bank branches and a large share of the

2 population doesn't have a high school diploma. 

3 Maybe we use a different metric there -- or at

4 work, sorry, a better example. And we look at

5 the share of households that don't have access to

6 a private vehicle.

7 MEMBER ANNIBALE: Or without public

8 transport.

9 MEMBER FUCHS: Right.

10 MEMBER ANNIBALE: Or you could

11 overlay --

12 MEMBER FUCHS: Or if it is elderly,

13 you look at what percentage is elderly and

14 wouldn't walk --

15 MEMBER ANNIBALE: You can overlay bank

16 ATMs that sit at outside branches, right, where

17 there are tens of thousands in some of our

18 cities, where the vast majority of people still

19 go for daily access. I mean, you have to think

20 about a lot of these dimensions of access, right. 

21 Very few people come to the branch --

22 MEMBER EAKES: And that shows that

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1 people are buying into your basic --

2 MR. ERNST: And we are going to

3 illustrate exactly, and I'm excited, actually, we

4 are going to illustrate exactly some of the

5 extensions of this method, but I think you are

6 all hitting the right note, which is how would we

7 use this information in practice, right?

8 MR. RENGERT: So, I am going to just

9 blast through the next couple of slides.

10 So, back again, this is Chicago. 

11 Twenty percent of the population of the city of

12 Chicago lives in a Tract with lower access to

13 bank branches, using our LDT at the 75 percent

14 threshold. But, if we were interested in focused

15 on particular populations for whom we think that

16 access to bank branches is particularly

17 important, we might overlay on that Census Tracts

18 that are also of low- or moderate-income.

19 So, here we are looking only at Census

20 Tracts that are LMI Census Tracts, as determined

21 by FFIEC, and that have access to zero branches

22 or exactly one branch, using the same red and

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1 orange shading that we talked about before.

2 We've eliminated, by doing this, 17

3 Tracts with one branch and 14 Tracts with zero

4 branches from our focus, if our focus was going

5 to be on access to bank branches for residents,

6 for consumers living in low- and moderate-income

7 Census Tracts.

8 Here we are looking at the

9 intersection between access to bank branches and

10 Tracts where over 25 percent of the households do

11 not have access to a private vehicle. So, again,

12 we have significantly narrowed down the number of

13 Tracts that we're looking at from 185 Tracts in

14 our original just plain-Jane what is the level of

15 neighborhood access. Now we are looking at only

16 107 Census Tracts, looking with the intersection

17 of access to a private vehicle.

18 Now we look at Tracts that have low

19 access to bank branches and over 25 percent of

20 the population resides in households where

21 English is not spoken at home. So, clearly, I am

22 taking sort of a small number of examples of data

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1 that are available from the American Community

2 Survey and showing what we can do by overlaying

3 them. Depending on who is doing the analysis, if

4 it is a consumer research group that has a

5 particular type of population that they are

6 interested in, they might choose a different set

7 of variables to look at. Depending on what one's

8 interest is, one can focus-in on different

9 subgroups of Census Tracts with lower access to

10 bank branches.

11 Here we are looking at the

12 intersection with where less than 80 percent of

13 the adult population has earned their high school

14 diploma. Our focus now is on 109 Census Tracts,

15 again, down from 185.

16 We can also look at other local data

17 that isn't from the Census. So, here we're

18 intersecting Tracts with lower access to bank

19 branches with Tracts that are over a quarter-mile

20 from the nearest L stop, using data from the

21 Chicago Transit Authority.

22 We see, actually, the vast majority of

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1 lower-access Tracts are -- we see that a

2 significant subset are in this group. But, then,

3 when we move from the access to an L to access to

4 bus stops, we see a very different picture. 

5 Clearly, the bus network is much more established

6 than the L network, not surprisingly. So, here

7 the vast majority of Tracts that have lower

8 access to bank branches are within a quarter mile

9 of at least one bus stop.

10 So, these are just a few examples

11 using of data of how the LDT -- first of all, I

12 described how the LDT has created the data that

13 it uses, what it conceptually means, but, then,

14 looking at several examples of how that can be

15 overlaid with other data to identify particular

16 populations that might be of particular interest

17 in assessing access to bank branches. There's

18 lots of other data that can be looked at as well.

19 We see this. It is a starting point

20 is what we are arguing. We identify Census

21 Tracts or neighborhoods that may have limited

22 access or may face negative impacts from having a

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1 branch closed.

2 But it is essential to realize that

3 not all communities with lower access to bank

4 branches have a problem. So, implicit in all of

5 this is there are, for instance, lower-income

6 suburban communities that have very low access to

7 bank branches that we really aren't going to be

8 that concerned about. They are not going to jump

9 out when we apply data about high school diploma,

10 for instance, or income data. So, we might set

11 those aside when we are focusing.

12 But this is a tool that allows us to

13 start that conversation, to start looking at

14 areas, identify areas with lower access, apply

15 other data to identify the areas that are

16 particularly of interest. And we believe that

17 this is a significant improvement over existing

18 strategies. It allows for a more finely-honed, a

19 more sophisticated way of identifying branch

20 access. But, again, it is a starting point.

21 And our plan going forward is to

22 disseminate this, Laura, from your suggestion

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1 earlier. And this is the starting point for

2 that. We look forward to your feedback on what

3 do you think of this approach and, hopefully, you

4 believe it is a contribution, and any ideas you

5 might have for disseminating it.

6 MR. ERNST: But, maybe just before we

7 do, Martin, since he raised a question that I

8 don't think got addressed, I want to give a

9 response to your question about why 75 percent

10 and not 50 percent, and sort of acknowledge that

11 this choice is an important one because you can

12 always adjust it, but where you start sometimes

13 defines the parameters of the discussion.

14 For us, I think we are trying to put

15 forward a method that helps us understand which

16 areas have relatively low access to bank branch

17 services. Fifty percent would potentially

18 represent the median. And so, you would be

19 saying anybody who has to travel than the

20 distance by concept has a level of low access. 

21 And median didn't feel quite -- it seemed maybe

22 not specifically training the conversation enough

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1 on the concept of relatively low access. So, 75

2 and 90 are two -- you know, we have looked at a

3 variety of locations, and 75 and 90 seemed to

4 provide some resolution and able to identify

5 areas that have some maybe more meaningful

6 context of what it means to be relatively-low

7 access.

8 It is still, Michael, to your point,

9 still a choice you are making. I think it is

10 less arbitrary than a distance threshold by

11 drawing on the information about where branches

12 are located against the population in the local

13 area. It is implicitly incorporating some of

14 that information about expectations that people

15 might reasonably have in that area for where they

16 would find a bank branch relative to their

17 residence. So, I think there is a little bit, by

18 allowing the data to dictate that distance, we

19 are making less of an arbitrary choice by

20 bringing that information in, but it still is a

21 choice.

22 So, I think two good questions on the

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1 table are whether 75 and 90 are reasonable

2 choices. And that is very hard to sort of opine

3 on the abstract, I recognize.

4 But the other is -- and maybe a little

5 easier to opine on -- if you are going to accept

6 our premise, also, that you take this information

7 and, then, think about what are populations of

8 interest, whether it is LMI, whether it is

9 seniors, whether it is individuals without

10 private transportation -- what are the

11 populations of interest that could be primary

12 considerations in any sort of analysis that we

13 might do along these lines?

14 Michael and Ted and, then, I am going

15 to look this way.

16 MEMBER BARR: So, you know, let me

17 just start by saying, just repeat what Martin

18 said, which is the fact that we are all jumping

19 in on this means that we think it is important

20 and interesting work. And if it didn't matter,

21 we wouldn't be asking hard questions about it.

22 (Laughter.)

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1 Really a terrific job.

2 A couple of things. One is this

3 percentage measure I think is more useful in the

4 context that maybe many of us in the room have in

5 our head of a problem with bank branches in a

6 dense urban community. It may be a lot less

7 useful when you are thinking about problems of

8 exclusion in Native American parts of the

9 country, the Indian reservations, distressed

10 rural communities, where you may have significant

11 lack of access to financial services across a

12 broad part of the community. And so, you're

13 picking up widespread distress and calling it

14 okay and, then, looking for the extremely

15 widespread distress that is worse than the

16 distress that you are seeing. So, you may want

17 to have different measures for rush-hour area

18 versus rural and Native American communities.

19 The second thing to think about is the

20 interaction between what you are studying and the

21 other financial services in the communities that

22 you are studying. So, I did a geographic mapping

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1 exercise in Detroit as part of my Detroit area

2 study research that I talked with the Committee

3 about a number of years ago.

4 One of the things that -- I used an

5 approach similar to what you did. So, I am just

6 saying it is good.

7 (Laughter.)

8 But one of the things that I found is

9 that you have to really carefully look at the

10 interaction effect of the location of bank

11 branches with other financial services, payday

12 lenders, pawn shops, check cashers. All had a

13 huge effect on usage of bank services.

14 So, even in communities where there

15 was a reasonable access by some measure to bank

16 branches, the usage rates were much lower in

17 communities that had very high alternative

18 financial services penetration. So that there is

19 a decline of about 9 percentage points in bank

20 account usage where AFS penetration was high.

21 So, I think if you could add into your

22 model not just bank branch location, which

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1 obviously is the easiest to obtain, but also

2 using small business data and SIC codes and other

3 information, you can get not perfect, but decent

4 data on the location of these other providers and

5 you can see interaction effects.

6 MR. ERNST: Thank you.

7 Then, we are going to come down to

8 Ted, Bruce, and I'll look for more hands, I

9 promise.

10 MEMBER BECK: Actually, Michael

11 covered a good part of my question. But,

12 basically, has this refined or changed how you

13 look at banking deserts from our discussions

14 yesterday?

15 MR. ERNST: So, banking deserts

16 suggests almost an objective determination that I

17 think we are struggling. I think we would love

18 to have a method that we felt confident in that

19 could define something that concretely and to say

20 here are the deserts; these are the areas where

21 attention should be put.

22 So, I think this is our approach to

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1 trying to identify areas that would likely fall

2 into that category. Maybe some would be a little

3 broader, but where we feel like we can do it,

4 lacking that sort of perfect objective

5 measurement to apply to determine that. I think

6 that is right.

7 MEMBER McCOY: I wanted to say thank

8 you for this really important research and to

9 echo Michael. The fact that we are so engaged in

10 thinking about the methodology is a real tribute

11 to you and the fact that you managed to educate

12 us on these three different approaches, and I

13 think we are all grappling with that.

14 I was, first of all, intrigued at your

15 statistic that only 21 percent of consumers use

16 ATMs. Is that really true?

17 MR. ERNST: That is a primary means of

18 accessing their accounts.

19 MEMBER McCOY: I see.

20 MR. ERNST: So, a higher proportion

21 use ATM, a much higher proportion use ATM.

22 MEMBER McCOY: Okay. Okay. And then,

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1 going back to the question about rural areas, I

2 have similar concerns. I spent two years living

3 in a very remote rural area, and an LDT of, let's

4 say, 15 miles, it would be just impossible for

5 many of the people I worked with.

6 If you think about it, there is either

7 poor public transportation, often none. If it is

8 Alaska, you are talking about airplanes; you

9 can't even drive places. And that is extremely

10 expensive.

11 MR. ERNST: Yes.

12 MEMBER McCOY: And so, I actually

13 might think about LDT, is it a proxy for access? 

14 In some of these rural areas it actually may not

15 be good proxy for access. You can have an LDT

16 and 75 percent of people within it, but they

17 don't really have access in a meaningful way.

18 And so, you might think about in the

19 outlier situations what are the limitations of

20 the device, and be explicit about that.

21 MR. ERNST: Uh-hum.

22 MEMBER McCOY: The other thing I would

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1 be interested in is, going back to your Chicago

2 maps, is if you could map the LDTs on top of

3 percentage unbanked in each Census Tract, that

4 would be interesting.

5 MR. RENGERT: If we had data at a

6 Census Tract level, that would be --

7 MEMBER McCOY: Okay. You don't?

8 MR. RENGERT: -- that would be

9 wonderful, but --

10 MR. ERNST: I think what we have tried

11 to do, in response to that, is to identify

12 populations that are more likely to be unbanked. 

13 So, looking at low- and moderate-income, looking

14 at areas where maybe both the populations are

15 low- and moderate-income and members of minority

16 populations. So, thinking about ways to layer on

17 to identify where that may play out, even though

18 we don't have the direct measurement.

19 MR. RENGERT: Thank you.

20 And just to quickly address the

21 multiple points that have been raised about rural

22 areas, I agree and this tool intuitively makes a

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1 lot more sense to apply to more densely2 populated, specifically metropolitan areas. And

3 I frequently say, just because you have the data

4 and can apply a tool, it doesn't mean you

5 necessarily should.

6 We do have data on population, the

7 Census Track level, across the country. We can

8 create the LDTs for rural areas, but it is less

9 meaningful when we -- the contribution of the

10 tool is that we can incorporate a local area to

11 determine what this distance is. When you start

12 looking at the rural area of a large state, it is

13 no longer a small local area. Now it is a huge

14 area. It just happens to have in common that it

15 is a non-metropolitan area of Nebraska or Alaska.

16 It is not ideal. It is still better

17 than applying two miles. And I think most of our

18 focus would be on metro areas.

19 MR. ERNST: Right. So, I think we are

20 hearing, one of the things we want to acknowledge

21 is we are hearing very clearly sort of the need

22 to think about the application of this to places

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1 like rural areas where, as Michael just said,

2 areas with Native American populations maybe,

3 with very different sort of residential patterns.

4 MR. RENGERT: Right.

5 MEMBER FUCHS: Yes. First of all, I

6 want to agree with what everybody said. This

7 needs to be done. We have come a remarkably long

8 way in trying to figure out a way to measure

9 inaccessibility.

10 I am wondering if you have had an

11 opportunity to look at the food desert piece

12 because I actually did a study on food deserts in

13 New York City, which is obviously urban and

14 wouldn't have the same methodology you were

15 looking for in rural areas.

16 But the FDA, the Department of

17 Agriculture -- excuse me -- has put together some

18 very interesting methodologies around determining

19 whether it is a food desert, which has to do with

20 access to fresh fruits and vegetables and stores

21 which carry fresh fruits and vegetables. So,

22 also, you have to deal with Robert's point, if

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1 you have access to an ATM, for most people, that

2 is sufficient. And maybe fine-tune this a little

3 bit, include that as part of the analysis.

4 But part of the way they do the food

5 deserts is, beginning with the location and put a

6 radius around the population, as opposed to

7 beginning with a whole city or a whole metro

8 area, and looking at the characteristics of the

9 population first and saying, you know, in an

10 urban area you would use this kind of methodology

11 differently than what you would use in a rural

12 area because of the differences in the way people

13 commute. So, these were walkability, mostly

14 walkability ones for low-income neighborhoods and

15 cities. Obviously, that would be different in

16 rural areas.

17 So, you are starting more with some of

18 the specific characteristics of the community

19 and, then, you are building out the radius of

20 what makes sense within the characteristics of

21 that community as opposed to taking one big

22 methodology and starting that way. I mean, you

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1 know, there's advantages and disadvantages to

2 both, but I think it might be interesting to

3 look.

4 MR. RENGERT: That is very interesting

5 research. I've looked some at it, not in as much

6 detail as I should. So, I'll go back and look

7 more. But I agree I think it doesn't serve --

8 MEMBER FUCHS: But I think it was

9 great. So, that is not a criticism. It is just

10 another --

11 MR. ERNST: Another resource.

12 MEMBER FUCHS: Yes, another resource.

13 MR. RENGERT: Thank you.

14 MR. ERNST: Thank you.

15 Bruce? And then, Martin.

16 MEMBER MURPHY: There were moments as

17 you were making your presentation when I'd say

18 whoopee. I was saying whoa.

19 (Laughter.)

20 And let me talk about both of those. 

21 MR. RENGERT: Right.

22 MEMBER MURPHY: We deal every day with

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1 branch authorization and location, and we deal

2 with this question not just in internally, but

3 externally with our advocacy groups. And we just

4 went through an acquisition where this was one of

5 the top three issues that we deal with.

6 And so, we made a decision that

7 somewhere between 25 and 28 percent of our

8 branches would be in. So, we have made those

9 kind of broad choices. In making those choices,

10 we look at opportunity in the market. We look at

11 the distribution of client groups and we look

12 what I call the intensity. Intensity is really

13 about how active, sophisticated, and informed is

14 the local community about their needs.

15 And so, what I was saying whoopee

16 about is that this can be a common language about

17 distance. And so, there are places where we

18 would say two miles is an appropriate distance,

19 given those other factors. There are others, as

20 we think about rural. Rural is a real challenge. 

21 At the end of the day, rural is a real challenge. 

22 And I am in Alaska. I am in Maine. I'm in Utah. 

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1 I am in Idaho. At the end of the day, I get

2 rural and understand that it is a challenge.

3 But the point I guess I really want to

4 make is that this can be an overlap against the

5 tools we use today. It can better inform the

6 tools we use today. The tools we use today may

7 better inform this model.

8 And so, what I would love to have is 

9 a conversation with our branch authorization

10 team, thinking about the way that we think about

11 this versus this particular model, to see where

12 are there real opportunities to figure out how

13 this model can be sharpened, made more relevant

14 in different kinds of communities. Because, I

15 mean, again, we have it all, high concentrations

16 and low concentrations.

17 So, we would love to engage directly

18 in that regard.

19 MR. ERNST: Well, we will work to make

20 that connection. Thank you for the offer.

21 One thing I want to point out is, you

22 know, the communities we highlight, we are not

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1 suggesting that communities with low or no

2 access, that our tool evaluates the viability or

3 the economic feasibility of a branch in that

4 location, right? It is really only asking the

5 question, does the community, notwithstanding any

6 factors like that, have relatively-low access?

7 I think if you do that and you have

8 confidence that you have identified an area of

9 need, then you turn to the question of, you know,

10 I think under our framework, what could be done

11 to address those needs. And the answers may be

12 very different in very different situations.

13 MEMBER MURPHY: So, the last

14 opportunity is to give the advocates a way to

15 think about this work. Because when they think

16 about branches, it is emotional. Fact-based goes

17 out the window. It is about Mrs. Smith can no

18 longer walk to the branch once a month to have

19 her social opportunity in the branch, and that is

20 what drives that conversation. I don't want to

21 tick off Mrs. Smith. But the reality is I can't

22 have a branch just for Mrs. Smith.

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1 (Laughter.)

2 And I could have a branch with 200

3 people and think that that is a viable

4 opportunity.

5 MR. ERNST: All right. Thank you for

6 those comments.

7 Martin, I think you had another --

8 MEMBER EAKES: These are all pretty

9 small points. I think in terms of presentation,

10 if you flipped your threshold to the one minus

11 the percentage, it would be more intuitive when

12 you are communicating. So, instead of calling it

13 a 75 percent threshold and, then, you have to do

14 the math to figure out that means 25 percent, but

15 if you just called it this is the 10 percent

16 threshold that are outside the standard or this

17 is the 25 percent, I think it would be more

18 intuitive presentation-wise.

19 MR. ERNST: Yes.

20 MEMBER EAKES: The second thought is

21 that you are very dependent on what you select as

22 your aggregate boundary. So, if you were, for

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1 instance, saying let me take downtown Chicago and

2 have a five-mile radius, you would get a lot more

3 variability in some ways in the Census Tracts

4 that you've got included, and the distances would

5 be different. All I am saying is it is very

6 sensitive to initial conditions or initial

7 assumptions.

8 And then, on one of the places where

9 you have your radius drawn, it actually comes out

10 elliptical. And I am wondering if that is that

11 it was at first a circle, but, then, you have

12 compressed your map to fit it on the page or

13 what.

14 MR. RENGERT: No. It is basically the

15 act of taking a spherical world and making it on

16 a flat map requires stretching. So, a circle

17 will appear elliptical.

18 MEMBER EAKES: But do you think this

19 is maybe something this small? I would be

20 surprised.

21 MR. ERNST: You know, it may have been

22 rendered through the mapping program a little

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1 inartfully, but the distance calculations are

2 underneath it.

3 MR. RENGERT: Thank you.

4 MEMBER ANNIBALE: Just very briefly,

5 great work. It is really interesting. I think

6 it is much more dynamic than what we have seen

7 before when you crossed the street and you

8 changed thoughts.

9 (Laughter.)

10 But I would encourage you, also, early

11 on to have this conversation with the OCC. Try

12 to get them to think in relation along with you

13 on this because the very largest banks are also

14 being looked at in branch terms with them. So, I

15 think both of you covering that would be very

16 helpful early on.

17 And I would say that there is also am

18 glad if you want to talk to our colleagues on it,

19 only because I have seen them articulate very

20 interestingly in discussions with the regulators

21 particularly. But around near to, they were

22 using the expression near to branches, which was

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1 the practical application, but the scientific in

2 any other way of the methodology that you are

3 doing, which really was just about that. You

4 know, areas that have very near proximity, good

5 public transport. And certainly, in urban areas

6 and in suburban I think that is doable. I think

7 everyone has espoused that we have very little

8 experience, but the rural areas may need a

9 different methodology.

10 MR. ERNST: Thank you.

11 We have Andrea with her hand up. And

12 I wonder how much time we have.

13 MEMBER LEVERE: Ten seconds.

14 MR. ERNST: That is your question --

15 MEMBER LEVERE: Just 10 seconds, which

16 I want to say, I think in all the conferences we

17 have held, we have never held a session on bank

18 branches. So, all I want to offer is that there

19 is a whole level of analysis that is going into

20 this.

21 But, back to the point Bruce made of

22 how do we educate those folks who could both make

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1 positive things happen or the opposite, to think

2 about how we can develop a curriculum that takes

3 this piece in a way that's accessible and also

4 helps move forward.

5 MR. ERNST: Thank you.

6 MEMBER EAKES: I think branches that

7 specialize in overdraft fees are not a good

8 thing.

9 (Laughter.)

10 MEMBER LEVERE: Yes.

11 MEMBER BARRERA: Keith, you know, one

12 of the points that Kris made upfront was that

13 bank branches are closing, right? And the whole

14 idea of technology, people are using our phones,

15 and so on. So, for a lot of banks, for one

16 particular bank that I know of, it was the cost

17 of doing business. They didn't get the traffic

18 in there. And so, therefore, they shut down,

19 left the community down in south Texas. From San

20 Antonio down, they left, right?

21 So, then, on the other hand, you have

22 got a bank serving the same area that is using

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1 their branches for financial education. So, they

2 are creating their team members as financial

3 consultants now and trainers. And, yes, the

4 teller is not going to be doing teller work

5 anymore because people are not coming in for

6 teller work, but they are coming in for financial

7 education.

8 So, I don't know how we -- how do we

9 help our communities? Yes, it is great

10 information, but, at the end of the day, the bank

11 has got those stockholders that are trying to

12 make more money. So, how do we balance the two

13 things?

14 MEMBER BARR: You need to demonstrate

15 the intensity of your beliefs.

16 (Laughter.)

17 MEMBER BARRERA: We do. We do.

18 MR. BOSTON: But I do want to add one

19 other thing to follow up what Janie just said. A

20 lot of the banks are also using their facilities

21 now as investment centers where they can say they

22 have a building, but there's no bank; there is no

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1 deposit. You know, they are just going in there

2 to talk to investors, but they have a branch.

3 So, I mean, how do you put that into

4 this model as well? That is not the low- and

5 moderate-income communities, but --

6 MR. ERNST: I really think that that

7 is the full circle. As I said at the beginning

8 of the presentation, there are many ways to think

9 about the import of bank branches, by asking

10 questions about residential neighborhoods as the

11 bank branches. We recognize that we are asking

12 one subset of those questions, but I think both

13 of these comments, whether it is the use of

14 branches for financial literacy or for investment

15 purposes, highlights many of those other

16 questions as well.

17 MEMBER FUCHS: A very quick point. I

18 don't want us to leave without some -- there have

19 been programs with positive incentives to get

20 banks to locate in these kinds of small assets.

21 There is New York State, and Diane Teller, who

22 was once Chair of this Committee, did that in New

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1 York State where she basically got the

2 controllers in the State to deposit large sums of

3 money in banks that agreed to locate. And there

4 were maps, less sophisticated than yours, but

5 maps which determined what would be an

6 underserved community. And it worked, frankly. 

7 The banks, you know, a whole bunch of different

8 banks opened up in neighborhoods where there --

9 MEMBER BARRERA: And I think that

10 would be a good resource for community banks to

11 be used in that way, right? The national banks

12 aren't thinking this --

13 MEMBER FUCHS: But they did in New

14 York. Citi did it. Chase did it. It wasn't

15 just --

16 MEMBER BARRERA: Are they still there?

17 MEMBER FUCHS: You know, it is hard

18 for me to say. I haven't looked at the maps

19 recently, but, yes --

20 MEMBER ANNIBALE: We have one branch

21 that was renewed with that and competitively

22 compete in what you serve in that community, and

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1 you receive deposits from, you know -- it doesn't

2 really matter where it goes in terms of a bank

3 branch versus a head office, but it can help the

4 economics of that location.

5 MEMBER FUCHS: And also subsidize the

6 locations and housing authorities. In cities it

7 is quite doable.

8 MEMBER EAKES: We should have another

9 session on branches, not just the mapping, but

10 sort of the policy and the trends, because the

11 sense is that mobile is taking transactions out

12 of branches at a pace that is unbelievable, 10

13 percent per year. And it means that branches, if

14 they were transaction centers, we are going to

15 keep seeing decline in the number of branches and

16 what that means. I think there is a bigger

17 discussion that would be worth following up next

18 time.

19 MEMBER MURPHY: So, we've got more

20 mobile transactions to those branch transactions.

21 MEMBER EAKES: Right, we do.

22 MEMBER MURPHY: And it is going to

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1 continue to go in that direction. By the way,

2 that is not an easy course to break, but that is

3 a different conversation.

4 MR. ERNST: Mr. Chairman, I think we

5 have received significant feedback.

6 (Laughter.)

7 CHAIRMAN GRUENBERG: But I don't

8 disagree with that and it has been a very helpful

9 conversation. This is an important issue and

10 highly relevant to the whole issue of inclusion

11 and access to the system.

12 Let me just make one final

13 observation, that we've got actually three

14 advisory committees at the FDIC. The meetings of

15 all three are open to the public. And, you know,

16 we will occasionally get a news story after an

17 advisory committee meeting saying, Advisory

18 Committee Criticizes FDIC. And I am thinking to

19 myself when I read the article, yeah. So?

20 (Laughter.)

21 You know, you don't have advisory

22 committees, frankly, to tell you everything you

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1 are doing is good. You have advisory committees

2 to tell you things that you can do better.

3 And so, when we get that sort of

4 thing, it suggests to me that we are actually

5 adding value to -- that the advisory committee is

6 actually adding value.

7 So, thank you all for your comments.

8 (Whereupon, the above-entitled matter

9 went off the record at 12:07 p.m. and resumed at

10 1:23 p.m.)

11 MR. VILLAFRANCA: Good afternoon. Mr.

12 Chairman, members of the ComE-IN Advisory

13 Committee, ladies and gentlemen, Lessie Evans,

14 our Section Chief and our supervisor, thank you

15 for this opportunity to share information about

16 the Community Affairs Branch, representing the

17 Division of Depositor and Consumer Protection.

18 I have to say that the last time I was

19 given the honor to address this Committee was

20 2010, and we were talking about building

21 partnerships as well then. And when we talked

22 about the elements, the very first one was trust. 

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1 And I think that remains true today.

2 My name is Eloy Villafranca. I am the

3 Regional Manager for the Dallas Region. I will

4 be your moderator today and I will also share

5 some information about a Dallas organization a

6 little later.

7 I'm honored to be on the panel today

8 with my esteemed my colleagues from throughout

9 the country: Angelisa Harris, our Regional

10 Manager in the Chicago Region; Emerson Hall, our

11 Regional Manager from the San Francisco Region,

12 and Clinton Vaughn, our Area Manager from the

13 Memphis Area Office. Bios for all the panelists

14 are in your folders along with a set of the

15 PowerPoint slides that you will see.

16 Each panelist is going to be sharing

17 information with you today on a specific activity

18 or set of events held in their Region or area. 

19 The map you see designates how the Community

20 Affairs Branch is segregated throughout the

21 country. There are six Regional Offices and two

22 Area Offices.

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1 When we focus our work in the

2 Community Affairs Branch, we work on what we call

3 our economic inclusion ladder or five

4 opportunities. Beginning as a ladder from the

5 bottom rung, you see is financial education. We

6 like to support quality and innovation and

7 programs to build financial capability and

8 develop educational resources responsible to the

9 needs of LMI individual scenarios: emerging

10 small businesses, diverse households, and

11 communities.

12 Most of you are aware of our Money

13 Smart Program that was started in 2001 that

14 continues to evolve and that is one of our major

15 products. We do train the trainers and other

16 things for that.

17 We also promote access to ensure

18 accounts in the use of safe, affordable, insured

19 deposit accounts. We have already talked this

20 morning some about the FDIC SAFE Account

21 Template.

22 Another area that we look at is credit

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1 and savings, to improve household financial

2 stability and resilience by encouraging safe and

3 affordable savings and credit solutions from

4 insured depository institutions and access by

5 those underserved consumers.

6 You will see in here some different

7 activities and events where we work with credit

8 repair, where we work with credit knowledge. And

9 one of our Money Smart modules is also about

10 credit.

11 Affordable mortgages. We encourage

12 institutions to offer and make available

13 prudently-underwritten affordable and responsible

14 mortgage credit. We will have a panel after this

15 one to discuss that and the wonderful work that

16 the Community Affairs Branch has been doing, and

17 in particular Sandra Kerr who has done some

18 remarkable work and has some great products to

19 talk about.

20 Under small business, we also work

21 with the SBA and others to encourage depository

22 institutions to prudently serve the financial

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1 needs of emerging entrepreneurs and small

2 business. And we have worked with a lot of

3 different partners throughout the years to do

4 this, and we continue to do that with not just

5 the SBA, but SBDCs throughout the nation. And

6 many times you will see us holding some workshops

7 on small business.

8 I see my partner over 20 years, Janie

9 Barrera, has also helped us and worked with us

10 throughout the years, and many of you that we

11 have had the opportunity to work with. We

12 appreciate that.

13 So, I'm excited to share with you some

14 information today on a particular coalition that

15 we formed in the Dallas County, Texas area. In

16 addition to the five opportunities that we have

17 enumerated, the other areas of importance for us

18 are CRA and community development. We work very

19 closely with our examination staff to work with

20 institutions on CRA and community development

21 opportunities as well.

22 The coalition in Dallas that we put

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1 together is now called the Dallas Financial

2 Inclusion Roundtable. We formed that 18 months

3 ago from a previous partnership that had lost

4 some momentum and still had some leadership, but

5 there were factions. What we found is a lot of

6 the same partners sometimes work in different

7 organizations and different facilities. And it

8 seems like some of our bankers sometimes tell us,

9 well, I don't know which one to go to.

10 So, what we did is we got together --

11 we meaning myself, the United Way of Metropolitan

12 Dallas, and the Federal Reserve Bank of Dallas --

13 and talked about how can we put together a

14 coalition, a partnership where all of these

15 partners can come together as one and work

16 together on all of the five opportunities and

17 other things that everybody seemed to be working

18 that in different factions.

19 We have been doing this for a year and

20 a half. We have got somewhere in the area of

21 over 250 people on our membership list that we

22 send information to. We have about 45 financial

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1 institutions right now, 85 community

2 organizations, five different government agencies

3 that are making an impact in addressing these

4 needs.

5 What we have done in the year and a

6 half is to ask the membership what are your

7 reasons for being here; what's your agenda; why

8 are you here? We find that, when we lose

9 membership in these partnerships and coalitions,

10 it is because we are not meeting their needs. 

11 And sometimes we have to discuss that back and

12 forth to realize what kind of assets they bring

13 to the coalition that they may not be aware of.

14 We may have someone that has capacity

15 for financial education, but they are looking for

16 students. Or we may have a church that has

17 participants that need financial education. And

18 that is when the dynamics begin and that is when

19 we start to make some influence.

20 So, we started with financial

21 education. We did an inventory of providers and

22 curriculum, who was doing what. The majority of

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1 those were using our Money Smart curriculum, but

2 we don't always have to have that. We just want

3 there to be financial education there.

4 We now have a significantly larger

5 number of both providers and participants just

6 from those people coming together and working

7 together.

8 Account access issue. Just recently,

9 I delivered to the coalition a presentation on

10 the FDIC's Unbanked Survey for the Dallas-Fort

11 Worth Metro Area. What we found from the survey

12 is, from our work that we have been doing not

13 just with this coalition, because it has only

14 been 18 months, but all of the prior work. Since

15 2009, the unbanked has fallen by 5 percent in

16 Dallas. And since 2013, the unbanked number has

17 fallen by 2 percent. So, we know we are making

18 some impact slowly but surely.

19 The Roundtable membership has been

20 looking at their own starter accounts. We are

21 doing an inventory right now of those 45

22 financial institutions. Some are those that

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1 already have the SAFE account or the National

2 Account Standards Account that we see. And we

3 are going to move forward with them.

4 What we found is that we have one or

5 two institutions that we weren't even aware now

6 have accounts that they didn't realize matched

7 our SAFE Account Template. So, we are doing some

8 more research on that, reviewing that, and

9 working forward.

10 We have our next meeting this summer. 

11 We are going to sit down, now that we have

12 established a solid core of membership, and talk

13 to our members about where do we want to make an

14 impact as a partnership, as a coalition. And the

15 FDIC and the United Way of Metropolitan Dallas

16 and the Federal Reserve Bank will continue to

17 guide that effort as we move forward.

18 So, we were excited to learn about the

19 drop in the number of the unbanked, and Dallas

20 has had a greater overall drop than the entire

21 State of Texas and the nation as a whole. So, we

22 are really excited that, from our own research,

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1 we know that it is statistically-significant. It

2 is not huge, but it shows we are moving in the

3 right direction, and we are excited about that.

4 One of the other things that we talk

5 about with this group is using the 3H approach. 

6 We believe in using the head. We believe in

7 using the heart, and we believe in using the

8 hands. And I will let my colleague Emerson talk

9 a little bit more about that in a little bit.

10 I want to hand over the microphone to

11 Angelisa Harris, our Regional Manager from

12 Chicago, and let her talk about some of her

13 involvement.

14 MS. HARRIS: Good afternoon.

15 Thank you, Mr. Chairman, members of

16 the Committee, and DCP leadership, for providing

17 me with the opportunity to share just a snapshot

18 of FDIC frontline experiences and collaborations

19 that exemplify the impact of two economic

20 inclusion strategies we have employed in

21 communities that have struggled with

22 disinvestment, unemployment, and significant

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1 underbanked populations of color. These include

2 Milwaukee, Wisconsin; southeast Michigan, and

3 Gary, Indiana.

4 The first example I would like to

5 share is focused on the FDIC Alliance for

6 Economic Inclusion Coalition's work on building

7 creditworthiness in underserved communities. 

8 This effort supports FDIC's Economic Inclusion

9 Strategy to improve the financial stability and

10 resilience of low- and moderate-income consumers.

11 As you know, FDIC leads the Alliance

12 for Economic Inclusion or AI Coalitions in a

13 number of markets across the country. These

14 broad-based coalitions are comprised of financial

15 institutions and diverse local stakeholders.

16 The AEI is charged with expanding

17 basic retail financial services for underserved

18 populations, including safe and affordable

19 insured accounts, small-dollar loan programs,

20 targeted financial education programs,

21 alternative delivery channels, and other asset22 building programs.

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1 We have two coalitions in the Chicago

2 Region. One is based in Milwaukee, Wisconsin,

3 and the other in the four-county area of

4 southeast Michigan. Through the AEI, we provide

5 leadership to facilitate partnerships among

6 nonprofits and financial institutions and

7 community leaders. These partners collaborate to

8 implement strategies, mobilize resources to

9 strengthen communities, build a more inclusive

10 banking system, and address persistent challenges

11 on a local level.

12 Several years ago, both coalitions

13 explored the issue of consumer creditworthiness

14 and its impact on the ability of the underbanked

15 to access safe and affordable financial products. 

16 This was done through a number of focused

17 discussions and knowledge exchange to better

18 understand consumer, financial, and market

19 dynamics.

20 The need for credit counseling,

21 financial education, stronger referral networks,

22 and identification of bank products to help build

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1 credit emerged as the most pressing issues

2 confronting many underbanked households, the

3 service organizations working with them, and the

4 financial institutions trying to meet their

5 credit and service needs.

6 The consensus was that building

7 consumer credit scores and knowledge is a

8 fundamental pillar to the successful

9 implementation of any asset-building initiative

10 and efforts to increase access to bank products.

11 The issue was also a common theme at

12 yesterday's Economic Inclusion Summit, affirming

13 that banks, nonprofits, government agencies, and

14 other stakeholders are generating numerous

15 partnerships and financial products focused on

16 improving consumer creditworthiness around the

17 country.

18 Tina Lentz at Bank on Louisville,

19 Rachel Schneider at the Center for Financial

20 Services Innovation, Rani Boukerrou at KeyBank,

21 Margaret Libby at MyPath, David Johnson at

22 BankPlus, our luncheon keynote speaker Maurice

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1 Jones at LISC, and even an attendee working with

2 Native Americans spoke to the importance of

3 credit scores, credit counseling, and credit4 builder products in providing access to

5 mainstream financial services and a pathway to

6 financial stability.

7 After considerable outreach and

8 dialog, led by the Community Affairs Specialist

9 on my team with AI members, a series of forums

10 and training workshops were held over the past

11 three years, some in collaboration with the

12 Credit Builders Alliance to build capacity of

13 local organizations, others with a concentrated

14 focus on using FDIC's Money Smart financial

15 education curriculum, and still others that

16 included a deeper dive with local banks to

17 inventory the product offerings that would

18 support building or rebuilding credit histories.

19 In the Milwaukee AEI, we worked to

20 build the capacity of over 78 organizations,

21 community-based, nonprofit, government agencies,

22 and financial institutions, working with

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1 consumers that have no credit or impaired credit.

2 We collaborated with key organizations

3 such as LISC Milwaukee and the Social Development

4 Commission to improve overall knowledge about

5 credit bureaus, regulatory principles, credit

6 scoring, datasets contained in the credit

7 reports, and how to assist clients on finding and

8 correcting credit mistakes.

9 We also work with two local consumer

10 groups who share strategies on how to serve a

11 variety of consumers. In addition, attendees at

12 the forums and workshops explore solutions for

13 hard-to-reach consumers.

14 As a result, local stakeholders have

15 the ability to replicate promising practices,

16 promote access to responsible financial products,

17 and work with banks to collaborate on products

18 and services that support the needs of consumers

19 with low, poor, or no credit histories.

20 River Works Development Corporation,

21 an AEI member, shared with us a story about one

22 of their clients that benefitted from our work. 

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1 In January 2015, a single female head of

2 household was referred to River Works by a local

3 bank because of the challenges she faced related

4 to purchasing an auto and home. Using the

5 information gleaned from the AEI, River Works was

6 able to help her clear up collections and

7 increase her FICO score from 550 to 624. Along

8 the way, she was referred to the Wisconsin

9 Women's Business Initiative Corporation as a

10 candidate for their four-to-one IDA Matched

11 Savings Program and to Habitat for Humanity's

12 Homeownership Program.

13 In June 2016, she closed on a Habitat

14 house for herself, her five children, and her

15 mother. By purchasing her first home, she is

16 saving over $400 a month in housing-related

17 expenses. During the past two years, she has

18 increased her net worth, decreased her debt,

19 increased her credit score, and increased her

20 savings. This is just one example of how our

21 work impacts the lives of real people.

22 In total, both of the AI coalitions

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1 reached over 200 representatives of banks,

2 community groups, nonprofits, and government

3 service representatives to increase their

4 knowledge about credit education tools, credit

5 bureau considerations, and availability of

6 second-chance and credit-builder accounts.

7 Finally, and just as important, I want

8 to highlight the referral networks. It is

9 important that we link consumers to both bank

10 accounts and the supportive services needed for

11 sustainable financial resilience, and that is

12 exactly what we do in the AI coalitions.

13 The second example I wanted to move to

14 focuses on how our community development work

15 intersects with our economic inclusion strategies

16 to promote access to banking services and insured

17 deposit accounts. This morning one of the panels

18 highlighted the reliance of LMI communities on

19 access to bank branches for financial services. 

20 My next example breathes some truth into that.

21 As you may know, Gary is a low- and

22 moderate-income community that has experienced

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1 economic downturn and disinvestment for over five

2 decades. In June 2013, the Chicago Community

3 Affairs staff held several outreach meetings with

4 the city of Gary, local stakeholders, and

5 financial institutions, to assess how well credit

6 service and investment needs are being met.

7 The outcome was a shared interest on

8 the need to improve communications about the

9 city's community development plans and investment

10 priorities, and the corresponding opportunities

11 for bank engagement. As a result, FDIC convened

12 a Community Development Forum in partnership with

13 the Office of the Controller of the Currency and

14 the Gary Economic Development Corporation. This

15 forum was held onsite at a vacant downtown bank

16 building in need of redevelopment.

17 The goal of the forum was to inform

18 financial institutions about a number of local

19 community development opportunities related to

20 housing, business development, and consumer

21 financial services. Included among the

22 opportunities highlighted was a need for a bank

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1 branch in the downtown area to provide access to

2 financial services for low- and moderate-income

3 consumers.

4 We were very intentional about hosting

5 the forum in the vacated old bank building to

6 provide a visual backdrop on community

7 development and reinvestment opportunities.

8 (Laughter.)

9 I have photos, but I didn't bring them

10 today.

11 Okay. Eloy is going to release the

12 timekeeper fly on me if I don't wrap up here. 

13 So, I will try to speak quickly.

14 (Laughter.)

15 There was only one other bank branch

16 in the same zip code. As a result of the forum,

17 one of the financial institutions that was in

18 attendance entered into discussions with the city

19 to explore the feasibility of opening a branch in

20 the building.

21 Community development, like any

22 financial stability effort, is not a one-and-done

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1 thing. It is a series of actions and efforts

2 that take time, a committed focus, and a

3 collaborative effort to see tangible results.

4 In October 2015, two years later, we

5 saw those results. An FDIC-regulated bank opened

6 a branch at our forum site, Gary's old bank

7 building. This was a big deal for the city and

8 attracted the participation of a former Governor

9 of Indiana at its opening.

10 The city and local organizations were

11 especially pleased with the potential impact of

12 this bank branch opening on the community because

13 of its products offerings specifically designed

14 for unbanked and underserved consumers. And

15 these products included second-chance accounts,

16 Smart Choice savings and checking accounts, and

17 small-dollar loans, and credit-builder loans.

18 Since the branch opening, the bank has

19 established a relationship with Men on the Move

20 Mentoring Program for Young Boys at the City Life

21 Center, a nonprofit located in the neighborhood. 

22 City Life Center uses a holistic approach to

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1 family stability by providing financial wellness,

2 education, and family development programs.

3 The bank provides financial support to

4 the organization, banking services, and the bank

5 employees devote time and energy and financial

6 education, mentoring, coaching, and personal

7 development training for the program. These bank

8 outreach efforts have reached low-income

9 consumers in nearby neighborhoods with high

10 concentrations of children coming from nearby

11 public housing units, single-parent moms, and

12 households with limited positive male influences.

13 The bank is also engaged in working with local

14 schools.

15 I thank you for your time. And thank

16 you, Eloy, for not releasing the fly.

17 I would like to turn over the

18 microphone to my colleague Emerson Hall from San

19 Francisco.

20 MR. HALL: Thank you, Angelisa.

21 Good afternoon, Chairman and members

22 of the Advisory Committee.

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1 My name is Emerson Hall, as I've been

2 introduced, and I'm the Community Affairs

3 Manager, the Regional Manager for the San

4 Francisco Region.

5 This is my first time at the

6 Committee, getting a chance to present, and this

7 is the first time just coming to the Committee. 

8 Hopefully, it won't be my last.

9 (Laughter.)

10 But I do have, roughly, nine to ten

11 minutes to speak, and I want to share with the

12 Committee. You guys probably already know this,

13 but I'm eight years in September I will be with

14 the FDIC. I was a banker for 25 years before

15 then. But my colleagues here, they have all been

16 here at least 20 to 25 years.

17 What I see here at the FDIC is that

18 economic inclusion is in the fabric of the

19 organization. We are the furthest Region away

20 from headquarters here. In the San Francisco

21 Region, the Regional Director, the Deputy

22 Regional Director, the Case Managers, the staff,

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1 they are all involved. I can call anybody for

2 any kind of help and I'll receive it. The

3 management staff that I have here from Mark to

4 Liz to Janet and to Lessie, we have their

5 support, and I really appreciate it.

6 And I really appreciate getting a

7 chance to hear the comments and the feedback that

8 you guys provide because what I consider is that

9 we are on the frontlines and we are trying to

10 implement the work that we are talking about and

11 that we are thinking about. And the ideas and

12 the products and the services that is being

13 provided that we talk about, we get a chance to

14 live it every day.

15 And I told my wife and I have told my

16 friends that, if I was independently wealthy, I

17 would do this for free.

18 (Laughter.)

19 And I really would because I think,

20 and I hear other people say, this is the best

21 job; we have the best jobs in the corporation.

22 Each time I leave the house my wife

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1 tells me something. She says, Emerson, I love

2 you, and she says, come back with a job.

3 (Laughter.)

4 So, I want to share really quickly two

5 examples of some of the work. I have some notes. 

6 I'm going to stay on point.

7 (Laughter.)

8 I want to talk about two examples of

9 some of the work that we've got a chance to be

10 involved in. The first one is in Los Angeles.

11 I don't think my -- okay, there it is. 

12 Oh, I'm supposed to do that? Okay. Okay. I

13 thought it was coming from over there. Sorry. 

14 Thank you.

15 My first example is work that we've

16 done in Los Angeles. And I will be brief because

17 there is a story that I want to tell with this as

18 well. But it is in regards to the Money Smart

19 for young adults. And the Housing Authority of

20 the city of Los Angeles contacted us because of

21 the work that we have been doing in Los Angeles,

22 and they said they wanted to meet with us. We

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1 met with them. They wanted to adopt the Money

2 Smart for young adults into their Summer Jobs

3 Program.

4 Of course, we were very interested in

5 doing that. And so, therefore, what they wanted

6 us to do is provide Money Smart for young adults,

7 train-the-trainer workshops. And I'm not sure if

8 you guys are really familiar with that or not,

9 but, basically, what we're trying to do is

10 duplicate ourselves. If we can multiply the

11 people that's teaching the program, then we are

12 going to be a lot more effective, because the

13 staff I have for the San Francisco Region is five

14 Community Affairs Specialists. We call them CAS

15 for short.

16 And what I try to instill in our CAS,

17 the C-A-S, is that we're not just Community

18 Affairs Specialists; we're change agents. We are

19 trying to transform the communities. We are

20 trying to transform lives, and that is what I

21 think about every time that I leave my home, is

22 that we have the opportunity, and we get paid to

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1 do this, but we have a wonderful opportunity to

2 transform, to be used and transform lives.

3 And it is hard work. It is not easy,

4 but we have to have high expectations if we want

5 to achieve anything. And so, we have high

6 expectations that we do want to try and make sure

7 that we can achieve.

8 So, essentially, we set up six

9 training sessions in Money Smart for young adults

10 workshops. In the summer of 2014 -- this was the

11 summer of 2014 -- we trained 160 persons in the

12 train-the-trainer workshops.

13 So, in the fall of 2014, because we

14 had worked with the Housing Authority, the

15 Economic Workforce Development Department in the

16 city of Los Angeles also contacted us and said,

17 would we provide the same type training for them

18 in the summer of 2015? So, we agreed and we did. 

19 So, we provided training in 2015 and 2016 for the

20 Economic Workforce Development Department in Los

21 Angeles and, also, the Housing Authority.

22 So, over the three-year period 2014,

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1 2015, and 2016, we trained 380 people. So, we

2 multiplied ourselves by a lot, and that 380

3 people actually, from our follow-up and

4 communications with the city of Los Angeles,

5 37,000 youth, at risk, low-income youth, were

6 actually provided financial literacy and

7 financial training. So, that's huge.

8 But I want to go back to very quickly

9 is that the Director of the Housing Authority in

10 2014, there were two things that she actually

11 wanted to achieve, and we talked about that a

12 little bit yesterday and we talked about some

13 again this morning. It is that not only did she

14 want us to provide training, she wanted us to try

15 to see if financial institutions would open up

16 accounts for the youth, which I didn't think was

17 going to be that hard, but it became a pretty big

18 challenge.

19 She told me about one financial

20 institution, there was a banker there that had

21 been doing this for the past several years. And

22 she said she had a real challenge with the other

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1 financial institutions in getting this done.

2 So, before meeting with the financial

3 institutions, I wanted to talk to the banker to

4 try to find out exactly how he was able to do it. 

5 So, I scheduled an appointment. I went to meet

6 with the banker. It was a fairly young guy. He

7 was in his early thirties.

8 But he had indicated that, after I

9 told him what I was trying to do, he indicated to

10 me, he says, Emerson, I haven't done anything

11 that's really that amazing. He says, we had a

12 product that nobody was actually using. I

13 started to use it, and it became successful.

14 And he told me a story about a young

15 man named Antonio. He said that he had helped

16 several years ago, several programs. The kid was

17 16 years old, first job with the Housing

18 Authority during the summer. He had a poor

19 attitude. He had poor grades, but he opened an

20 account and he had a job, and he stayed in touch

21 with the Branch Manager because the Branch

22 Manager was just, well, 13 years older than the

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1 guy.

2 But he said that, by the time he

3 graduated, he graduated with good grades. He

4 enlisted in the U.S. Marines. He started taking

5 classes while he was in the Marines. He finished

6 college, and he's an officer in the U.S. Marines

7 today.

8 He was raised by a single parent, a

9 single mother. He had three younger sisters, and

10 his goal was to move his mother out of the public

11 housing that they were living in for the past

12 three generations.

13 So, of the 37,000 kids that were

14 helped do this, there's a lot of Antonios. 

15 There's hundreds of thousands of them. So, we

16 don't see, actually, all the value of the work

17 that we do immediately sometimes. Sometimes it

18 takes a while. So, I will find out if he bought

19 his mother a home when I check back, but I am

20 sure he did.

21 The second example that I want to

22 share with you is in Sacramento, California. The

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1 second example is in Sacramento, California, and

2 specifically, the Sacramento Promise Zone. The

3 Sacramento Promise Zone was a designation awarded

4 in 2015, and it was to spur job creation, to

5 increase economic activity in the area, and then,

6 also, neighborhood revitalization.

7 The unemployment in the Promise Zone

8 is at 19 percent, and it is significantly than

9 the average rate of Sacrament of 5.3. And so, as

10 we all know, unemployment undermines the very

11 fabric of the families, self-sufficiency, and it

12 negatively impacts people and communities that

13 they live in.

14 So, Sacramento -- and I get the

15 directions here from headquarters, but I

16 certainly got the understanding. I've been in

17 California now four years. But Sacramento and

18 the surrounding San Joaquin Valley counties have

19 always been a high profile and a high priority

20 for us in California.

21 So, anytime that we have an

22 opportunity to do some work there, we are going

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1 to focus on trying to have some positive impacts. 

2 So, ourselves, another regulatory agency, and the

3 Sacramento Housing Redevelopment Organization --

4 I'm coming to a close; okay -- we held a Promise

5 Zone Forum in September of 2016.

6 I'll get to my notes, so I can get

7 finished.

8 In 2016, September of 2016, we hosted

9 a Promise Zone Forum to encourage job creation

10 and assistance for small businesses. Eleven

11 financial institutions participated in the forum. 

12 After several meetings and 37 proposals, we were

13 able to have four of the eleven banks, they

14 provided a grant to a nonprofit organization that

15 is funding a project in the Promise Zone which is

16 going to help 60 youth, high school youth,

17 juniors and seniors, learn more about the solar

18 industry and get career jobs.

19 Now I didn't know much about the solar

20 industry until we got involved in this project. 

21 But, from what I understand, the solar industry

22 is one of the fastest job creators in the nation. 

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1 It is grown 20 percent each year for the past

2 three years.

3 So, what we are trying to do is get

4 these young people into careers, not minimum wage

5 jobs, not seasonal jobs, but livable wages. So,

6 that is a real success there in the Promise Zone.

7 And then, also, another 40 LMI

8 individuals in that community will get training,

9 100 hours of on-the-job training in the solar

10 industry as well.

11 So, thank you. Thank you very much.

12 And I am going to pass the microphone

13 over to my colleague Clinton Vaughn, Area Manager

14 Memphis.

15 Thank you.

16 MR. VAUGHN: Thank you. Thank you,

17 Mr. Chairman. I thank you for this opportunity.

18 Most of you I've had beyond a business

19 cordial relationship, but more in-depth personal

20 relationships.

21 We've talked about partnerships this

22 entire conference, and it just echoes the need to

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1 continue that. And the couple of examples that I

2 have, one that is on the screen is the Memphis

3 CDFI Network. This was a concept that began

4 several years back. This was launched in 2014,

5 but it was several years that led up to this with

6 bank roundtables, listening sessions with the

7 community to hear the needs of the community, to

8 hear the needs of the various lenders and the

9 organizations trying to serve the population.

10 And what we discovered in that was

11 there were silos, people who were operating in

12 the silos. It was very fragmented. What we

13 wanted to do is create a coalition that would

14 create a buffet, if you will, that someone could

15 go down the line and pick their appetite and let

16 them work together and leverage those resources.

17 So, when I look at it, this coalition,

18 there's eight of them and it's a mix. It is

19 diverse. This is a bank. This is credit unions. 

20 This is nonprofit CDFIs. This is CDFIs that

21 focus on home loans. This is CDFIs that focus on

22 microbusiness loans.

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1 This is CDFIs that focus on true

2 startups, but it also includes CDFIs that look

3 for the businesses that have been in business a

4 five-year season to take them to scale and to the

5 meetings, so we can take it from $500 into the

6 millions.

7 And we have retirees from corporate

8 America, retirees from SCORE, that are engaged

9 and involved in this process. Because our intent

10 is for people to be successful, not to get them

11 started to watch them fail.

12 A lot of that goes back to the

13 history. The states that I have are Tennessee,

14 Arkansas, Louisiana, and Mississippi. When you

15 say Tennessee, this is also known as the capital

16 of Mississippi.

17 (Laughter.)

18 And we receive in flux of people from

19 those various from those various rural

20 communities, and we are there to provide

21 resources. When we look at what we have, we work

22 a lot with Small Business Development Centers in

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1 our Region that are funded by SBA.

2 We also, through those Small Business

3 Development Centers, we work heavily with the

4 Historically Black Colleges and Universities. 

5 When we get into the HBCUs, they were all founded

6 by preachers. So, in my Region, faith and hope

7 blends deep. And in that deepness, you have a

8 commitment to help the community.

9 The role we play is to try to

10 coordinate those efforts and bring that energy

11 together, so that it can move forward.

12 I look at Janie on the corner, and I

13 can look at bankers that we were able to work

14 with, communities, get her free space, get her

15 offices open, give her free space in Memphis

16 today and in Louisiana, in other cities. We work

17 that way very intensively because of having that

18 connection and knowing those partnerships in a

19 realistic way.

20 And what it involves with my staff

21 that I tell them all the time, you begin, you

22 sustain, and you end with trust. We have

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1 communities that trust us. When we walk in the

2 room and we are on the agenda, they trust us. 

3 They trust the FDIC.

4 We have to stick with that. So, with

5 these eight CDFIs working together, we have

6 success rates with loans; we have successful

7 businesses; we have minority businesses that are

8 into the millions in sales from startup.

9 The affordable housing piece, which is

10 the next slide, that is affordable housing for

11 people with disabilities. We are talking an

12 organization that has a 2 percent foreclosure

13 rate. We are talking people that became

14 homeowners that are blind, people that can't

15 hear, people in wheelchairs, that some bankers

16 would look, when they come in the lobby, and say,

17 this is a credit risk I can handle.

18 But, through this partnership, we have

19 bankers on their boards. We have bankers that

20 have given them true grants that don't have to be

21 repaid, banks that are financing those loans and

22 those credits along with leveraging funds, to the

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1 point to some of the deals have $40,000 or more

2 in leveraged funds to lower the amount of their

3 loan.

4 And we have housing counseling, pre5 housing counseling involved. So, we have a

6 multitude of organizations involved, and in every

7 one of these, including the affordable housing

8 through the Institute for Disability Studies,

9 which is through the University of Mississippi,

10 but it covers every county in the State of

11 Mississippi. But that organization's board was

12 started with preachers.

13 And we've had that type penetration

14 through every one of these organizations where

15 people go beyond to make sure it works. And most

16 of them have served, if not on a voting board of

17 our banks that are involved -- and we have 16

18 banks involved in that venue -- they are on the

19 advisory board of those banks.

20 And that climate is what has created

21 this success rate. So, the partnerships

22 continue, and they are very deep and they are

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1 very meaningful.

2 I look at Alden. I can remember with

3 the Chairman riding in a van because we couldn't

4 take a bus into New Orleans, and we didn't have

5 street signs and red lights were not working, but

6 we were able to maneuver through those

7 neighborhoods, largely because my staff and I

8 knew those neighborhoods and we didn't need a

9 street sign.

10 (Laughter.)

11 And Alden, going in your Bank

12 Operation Center, you had eight feet of water in

13 those files. All his loan notes, everything was

14 under water.

15 But it's that caring. It's that

16 partnership. It's that trust that I know you

17 mean what you say, and I know you are here to

18 make good. And that is what has worked these

19 partnerships.

20 MR. VILLAFRANCA: So, you've gotten a

21 taste of, just a little taste of the hundreds of

22 different activities and events that our staff

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1 and our community affairs staff and leadership

2 here in Washington in guiding us do throughout

3 the nation.

4 At this point, we offer time to you to

5 ask us some questions. These are just here as

6 guidance. But, basically, we really don't need

7 to give this group any.

8 (Laughter.)

9 Mr. Boston?

10 MR. BOSTON: Not us, right.

11 MR. VILLAFRANCA: I was just going to

12 put my watch back on now.

13 (Laughter.)

14 MR. BOSTON: No, no, no.

15 Yes, I want to say I had a chance to

16 work with all of you and a lot of your other

17 Community Affairs Managers around the country,

18 and I have said this before and I want to say it

19 again. Martin, I believe that one of the secret

20 weapons that the FDIC has is this group. They

21 are not publicized. When you think about the

22 FDIC, we always think about the sign in the

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1 window in the bank.

2 But what your team does all across the

3 country -- and I had a chance to travel with the

4 Moneywise Tour, and you've always been with me

5 for a number of years. To see how they engage

6 communities of all types, and that they know

7 people, like you said, from the bankers to the

8 nonprofits, to the ministers, is amazing.

9 I thought we also saw something

10 amazing yesterday when we had, I think, one of

11 your coworkers from the Midwest and he talked

12 about how they built the website and brought

13 together 100 organizations.

14 But the most significant things, and

15 you reinforced it today, is that FDIC was there

16 for a number of years for that one project. A

17 nonprofit cannot afford that. A church cannot

18 afford that. A lot of our banks cannot afford to

19 put one person -- of course, he was doing other

20 things, but he had that project for a number of

21 years.

22 The relationships that you are

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1 building in these communities, these are not

2 short-term relationships. These are long-term

3 relationships.

4 So, again, I just want to thank you

5 for all the work that you have done and continue

6 to do. And thank you, Martin, and I hope you

7 don't cut this group, whatever you do, because we

8 need them.

9 (Laughter.)

10 Thank you very much.

11 MEMBER ANNIBALE: I have to say thank

12 you. Thank you. It is very helpful. And I take

13 away, also, the idea that, you know, for many of

14 us there's more to learn from other parts of the

15 country, that we do spend a lot of time, some of

16 us, in our own markets, whatever those are that

17 we come from. But I think you also cover, each

18 of you cover wide geographies of areas that

19 sometimes are underappreciated. And I think we

20 have become more informed from the work you do.

21 It would be a great idea at some point

22 for us -- maybe we should have a meeting in one

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1 of the markets. There's plenty of parts of the

2 South and the Southwest and Midwest are areas

3 where -- you know, some of us would be very

4 urban-bound, I have to confess. But I do

5 confess.

6 (Laughter.)

7 It is very helpful.

8 I have a flight to London tonight. 

9 So, it's on the map.

10 But, no, I think that some of the

11 areas you cover, we would all benefit from

12 because I think Alden particularly and Bruce has

13 branches and a presence in a lot of markets that

14 are challenged differently than the urban markets

15 that clearly we do focus on as well. But we know

16 better.

17 I would just say thank you for sharing

18 your time with us, but also I'll make a point of

19 myself in my travels to try to call on you, if I

20 can.

21 MEMBER McDONALD: Yes, I would like to

22 add my thanks and congratulations to you, not

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1 only today, but for the work that you do every

2 day. And I could vouch for the fact that in the

3 different markets that we are in, Mr. Chairman,

4 the FDIC outreach group sitting here at this

5 table, they touch every bank in the community in

6 which they operate.

7 I get the feedback from the bankers

8 that I know in those communities. And the work

9 that we do here and the message that they're

10 carrying out resonate with all of the community

11 banks in the different areas which they

12 represent.

13 As a result of that, that's why we see

14 continuous activity of these community banks

15 really diving into the message and to the focus

16 that we have for the low- and moderate-income. 

17 If it were not for the FDIC, the outreach that

18 these individuals do every day -- they are out

19 there beating the pavement. And I just wanted to

20 make sure that you guys really know that we

21 appreciate what you're doing because it makes the

22 job easier for everyone. So, thank you.

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1 MR. VILLAFRANCA: Andrea?

2 MEMBER LEVERE: Thank you all as well.

3 We have had the opportunity,

4 particularly through Liz and Janet, to talk about

5 how we link our 93 coalitions with your fabulous

6 work.

7 I want to raise one opportunity and,

8 then, one challenge that we're facing, for which

9 we would like to seek your help. So, two months

10 ago, I gave a keynote presentation to Gala Social

11 Venture Partners. Gala Social Venture Partners

12 has a membership of 155 private sector business

13 people who are theoretically focused on social

14 innovation.

15 And it was very clear, and I'm saying

16 this as nicely as I can, that there was so more

17 that they could do.

18 (Laughter.)

19 And so, one of the challenges, because

20 representatives from virtually every financial

21 institution in the Region were sitting at the

22 table, and I had all the new data on unbanked and

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1 underbanked, is that collectively they could cut

2 that banking in half. And I issued that

3 challenge to the Gala Social Venture Partners,

4 along with several others.

5 And I have the same invitation to

6 another one which is being run by one of my

7 college classmates. He is atoning for his

8 private equity sins.

9 (Laughter.)

10 But I did want to say that I just

11 think at this time period that these

12 organizations are incredibly high-capacity

13 potential partners to really bring in. So, I

14 assume you already know the man who runs Gala

15 Social Venture Partners, so you don't need that

16 connection. But I just think that is a group of

17 people that could bring lots of value to the work

18 you're doing.

19 The other thing I will say is that

20 there is a major national foundation who was very

21 focused on funding financial inclusion and

22 massive building coalitions in the South, where

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1 there was very little capacity. And they just

2 stopped funding all of them without any

3 transition process.

4 So, we are now working with all of

5 them to have a convening in New Orleans to try to

6 figure out how we support these organizations

7 going forward who have not been able to find

8 funding and really need it. We've gotten some

9 local foundations, but we would love to work with

10 you all who are -- it's a broad southern region

11 -- to just think about what are the resources

12 that we can bring to the table to support in many

13 cases.

14 For example, in Louisiana there's one

15 person doing all this work. So, I would love to

16 have that conversation in whatever way made most

17 sense.

18 And we already have the Rockefeller

19 Foundation stepping up out of recognition that

20 this is a very big issue for the region.

21 MR. VILLAFRANCA: And that's huge for

22 us, too, being that there are eight managers

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1 across the nation.

2 MEMBER LEVERE: Yes.

3 MR. VILLAFRANCA: That's not very

4 many.

5 MEMBER LEVERE: Right.

6 MR. VILLAFRANCA: But we love it when

7 we get this kind of information.

8 MEMBER LEVERE: Yes.

9 MR. VILLAFRANCA: And it just further

10 affirms that we need your assistance, too, to

11 make the connection and help us make the

12 connection as well.

13 And you brought up something very

14 important, too --

15 MEMBER LEVERE: Yes.

16 MR. VILLAFRANCA: -- that I think that

17 people may not know. Within our work and because

18 we work for the FDIC, we are not allowed to be

19 involved in funding in any way.

20 But you heard a little bit about how

21 Clinton worked with his partners to be able to

22 make that happen. And so, we do as much as we

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1 can without stepping over our bounds to do that.

2 But you're absolutely right, the more

3 partnership we can bring together to the fold,

4 the more we can do exponentially. And it's

5 because he has allowed us to do that.

6 MEMBER LEVERE: Uh-hum.

7 MR. VILLAFRANCA: Yes, ma'am?

8 MEMBER McCOY: Very briefly, you and

9 your colleagues are really unsung heroes. It is

10 one thing for a federal agency to do cutting-edge

11 research, which the FDIC does, developing

12 consumer education materials. It is another

13 thing to actually disseminate all of this and get

14 policies actually implemented on the ground, and

15 it is tireless work. I don't need to tell you. 

16 And it takes incredible dedication for years.

17 And so, I think in some ways this is

18 one of the most exciting things I've heard on

19 this Advisory Committee, is to hear how all of

20 these we think about actually are getting

21 traction in many different places all over the

22 country. So, thank you.

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1 CHAIRMAN GRUENBERG: Yes, thank you.

2 MR. VILLAFRANCA: Thank you. Thank

3 you.

4 MEMBER MURPHY: Being transparent, I

5 must admit that we have all engaged in your tunes

6 episodically. And so, what is clear to me is,

7 you know, while I consider myself a pretty bright

8 person, I hire smarter people than me because

9 they can figure out on the ground who and how

10 they need to move in.

11 So, our corporate responsibility

12 officers, which are regionally across our

13 footprint, you need to know because they have

14 three responsibilities: CRA administration. The

15 second is building a community engagement

16 strategy. We find out who we are going to engage

17 with and who we will not engage with, who we will

18 invest in and who we will not invest in. But we

19 will need to have partners to both validate those

20 strategies, sharpen those strategies, and,

21 ultimately, execute those strategies.

22 And so, to have informed and engaged

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1 partners who have the same focus, many hands make

2 the load light, making the load lighter. It

3 never gets light in this space.

4 So, my takeaway here is that there is

5 an opportunity for us to do a better job of

6 connected because there is clear opportunity to

7 leverage both our knowledge and our capability.

8 And there are things that you know

9 about the programs here that I don't know, that

10 they can know and, then, can begin to engage. 

11 So, you should expect to hear from my team in

12 this space.

13 MEMBER EAKES: So, I just wanted to

14 thank you for all the work you have done. I

15 don't think I have met any of you, but listening

16 to you, I have a sense of why the community

17 trusts you. And all of you have this real

18 authenticity of being able to work with partners,

19 and it is really great.

20 So, I want to take the chance to pick

21 your brain. I was thinking, when someone called

22 you unsung heroes, nobody has been to Memphis,

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1 because as far as I can tell, it is only singing

2 that takes place in Memphis.

3 (Laughter.)

4 So, my question is, I'm recently

5 getting involved in Milwaukee and the south side

6 of Chicago, and I'm thinking about the challenge

7 where you have jobs disappearing. So, in

8 communities, particularly communities of color

9 where jobs are disappearing and sometimes where

10 the population is declining, what are the most

11 successful things you've seen in sort of

12 revitalizing hope in those places?

13 MS. HARRIS: That is my territory. 

14 You know, I think the success measures still have

15 a long way to go in those areas, but I am very

16 encouraged by a focus not just with our team, but

17 also with some of our other regulatory partners

18 on workforce development and working with the

19 community private sector partners and banks about

20 how we can really leverage resources and training

21 around that.

22 So, I can't point to any particular

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1 success measure because I think we are still on a

2 pathway toward developing something that can be a

3 promising practice in that area, but would love

4 to engage with you on where we go from here.

5 MEMBER EAKES: And so, for you, is

6 workforce development bringing new business in or

7 having people start their own, or both?

8 MS. HARRIS: All of it, yes. Yes and

9 yes.

10 MEMBER EAKES: Yes, yes. Thank you.

11 MR. VILLAFRANCA: One of the things

12 that the FDIC has is a national agreement with

13 the SBA for us to be able to work all through the

14 nation together to bring in people that are

15 entrepreneurs or brand-new businesses, all of

16 that. So, we also partner with all the SBDCs,

17 and we do a lot of things that are outside the

18 box.

19 The thing that I would say, when

20 listening to you, one of the things that we've

21 seen in the Dallas Region is that talking to

22 financial institutions about thinking outside of

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1 the box and bringing in some of those young

2 people in their communities on an internship

3 basis, and what they often find is that they are

4 very teachable, obviously, and they sometimes end

5 up getting a job with the bank, staying on with

6 the bank, and they're there for 40 years.

7 I mean, it is just all of us thinking

8 what can we do in our own capacities with the

9 resources we have and the inventory that we have,

10 and then, bringing people together to talk about

11 what are the needs. And then, there are others

12 -- usually, somebody has two or three needs of a

13 young person, and somebody else says, you know,

14 we've got 20 young people that need that. That

15 is kind of part of what we like to do, is to

16 bring people together to find out where those

17 dynamics can work, and look at new ways.

18 And I think, Mr. Murphy, you said

19 earlier about you have a program and you don't

20 know about the success until you start it. And

21 as you work through that, you make those

22 adjustments that work. And the things that don't

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1 work, you quit doing those. And that is kind of

2 what we do as well.

3 MS. HARRIS: And I just want to add

4 before we move on to another question, I think

5 one of the things that FDIC does, and does well,

6 is convene stakeholders around certain issues. 

7 So, when you say what works well, I start

8 thinking about all the different pieces that are

9 working. But is there any one movement that

10 really coalesces and will change the trajectory

11 of where things are and where they need to go? 

12 Not yet, not yet. But the initial dialogs and

13 the interest is there. So, I expect to be able

14 to answer that question much more concretely the

15 next time I come before you.

16 (Laughter.)

17 MEMBER BARR: Let me first join others

18 in just being deeply moved by the work you are

19 doing. It is really quite extraordinary around

20 the country.

21 I want to ask a question that may be

22 a little on the hard side, given your roles. But

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1 how much interaction do you have with the parts

2 of the FDIC that may be less focused on inclusion

3 and equity than you are? That is, you know, the

4 bank examiners, for example. How much tension is

5 there or cooperation is there between your work

6 and the work that they are doing in supervising

7 the institutions that you want as partners?

8 MEMBER McDONALD: Before you take

9 that, Emerson, I want to remind you your wife

10 said come back home with the job.

11 (Laughter.)

12 MR. HALL: No, I plan to.

13 (Laughter.)

14 But it is a positive. I will speak

15 for the San Francisco Region. I think I can

16 speak for all the Regions. But it is a positive

17 story.

18 I see I think it starts at the top and

19 there is a thread that runs through the FDIC that

20 economic inclusion is very, very important. And

21 I know that our Regional Director and Deputy

22 Regional Directors in the Regions, they have

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1 conversations here with headquarters in regards

2 to the work that we are doing and the work that

3 they are engaged in.

4 And as I said during my remarks, I can

5 call anybody in the corporation and ask for

6 support or assistance, and we get it. We have at

7 our roundtables and our listening sessions and

8 our forums, we ask the examiners to participate

9 and attend, and they do.

10 From what I've been told, because I

11 really want to know, do they see value and do

12 they feel that that is a good use of their time? 

13 And they tell us that it is. And that comes all

14 the way from the top, and that is anytime that it

15 seems like that we're not providing quality to

16 the community or we're not using their experience

17 well, then I want to know because we want to try

18 to make sure that we elevate the work that we do.

19 So, I think it is an excellent

20 relationship, and I see that, because of the

21 emphasis that you guys have placed on it and the

22 Chairman has placed on it, and senior management,

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1 the executive management team, it continues to

2 improve every year.

3 So, I have a job, I hope.

4 (Laughter.)

5 I'm meeting with Mark at 4:15. I'll

6 know.

7 (Laughter.)

8 MS. HARRIS: I have to piggyback on

9 that. That was actually one of the easiest

10 questions to answer.

11 And I do have to say it does start at

12 the top. You know, the Chairman has been

13 excellent in conveying the message. Our

14 management team with DCP has been excellent in

15 making sure it is refined and digested and

16 repeated and repeated and repeated before every

17 meeting and gathering, so that people really

18 understand what it is that we are trying to do

19 and how it connects back to our goals and

20 objectives within here at FDIC.

21 And I have to give a compliment to

22 Regional Director Lowe in the Chicago Region

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1 because he has set the tone. He has made my job

2 easier because I don't have to reach out just

3 from a community affairs perspective to try to

4 convince people to come in. They reach out to

5 us. We're seen as a resource, and we are

6 interacting and collaborating on a daily basis. 

7 We are getting referrals about financial

8 institutions that might have some challenges.

9 My team, which is a strong, excellent

10 team, is working side-by-side with examiners to

11 try to open up the doors of opportunities, make

12 the connections in the communities. It's good. 

13 It's good.

14 MR. VILLAFRANCA: Five or six years

15 ago, we got a new Director. At the time, we

16 worked for the Division of Consumer Compliance. 

17 That Division is now the Division of Consumer

18 Protection. And that was Mark Pearce. Mark

19 Pearce is not just the Director of DCP, because I

20 hear examiners from Risk Management talk about

21 the things that Mark Pearce talks to them about

22 in meetings. So, this is not an FDIC of

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1 segregated silos. This is an organization where,

2 starting with Chairman Gruenberg, it has brought

3 people together and we work together.

4 In fact, I will tell you that I

5 probably get more calls from the ARB in

6 compliance exams to come look at exams and talk

7 to them. As they said, we advise banks on

8 community development and CRA and those kinds of

9 things.

10 So, the more we work together, the

11 better we all are. We have examiners that we do

12 what we call listening sessions for, where we

13 bring in organizations like yours and community14 and faith-based organizations, and they learn

15 about those that they are going to go out into

16 and exam those banks. So that, when the banks

17 say, we're not sure of this, they can say, well,

18 here's some information. Or they will say,

19 contact Angelisa Harris and the Community Affairs

20 Team and they'll help you out.

21 MS. HARRIS: I also just want to add,

22 too, that we're invited to the regional meetings

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1 with bankers. I had the opportunity to be the

2 luncheon speaker at a whole series the other

3 year. And that's solid commitment, to be able to

4 bring the message about our program at that

5 banker-focused meeting that is being held by a

6 Regional Director and encompasses all of their

7 programming for both risk and compliance.

8 MEMBER McDONALD: Yes, I would just

9 like to add just a couple of things. As I sat

10 here and was listening to a number of the

11 comments -- and, Michael, to your question -- I

12 realized that I may be the only FDIC member

13 sitting at this table. And I want this panel to

14 know directly from me that what you hear from

15 these individuals here and what you hear from

16 what we talk about in this room, this is

17 throughout the entire FDIC organization.

18 We get a lot of calls and a lot of

19 support from the FDIC group, not just my bank,

20 all of the banks. And this topic is on the top

21 of the agenda throughout the entire organization,

22 and it is not a topic from a negative point of

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1 view. It is a topic of how can we help you

2 achieve these goals.

3 So, when I made my comment earlier, it

4 just goes to show why the organization as a whole

5 has been really pushing this, because it starts

6 with the Chairman. It has gone throughout the

7 entire organization, and it is part of their

8 everyday life and conversation with the bankers

9 that the FDIC is examining in our country.

10 MEMBER BARRERA: I just wanted to add

11 that, you know, as you all are the conveners, so

12 as an example, a new CDFI entering an area such

13 as LiftFund where we are expanding outside of

14 Texas, they were conducting dog-and-pony shows.

15 If I were to invite somebody to come

16 and learn about access to capital for small

17 business, they see LiftFund; who's that? They

18 see a letter going out from the FDIC. All of a

19 sudden, every banker in town is there.

20 So, it is that kind of reputation that

21 the group has as well. And if you are not

22 endorsing, what you are doing is providing

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1 information and convening people and saying these

2 are the kinds of programs that are out there. 

3 And so, it gives it legitimacy.

4 MR. BOSTON: And I just want to go

5 back to something, a question that Martin raised

6 about hope. And it is a little different, but I

7 think it is important.

8 We may need to go back to a

9 conversation about the children's savings

10 account. I have been telling Mayors and telling

11 the new Mayor in Baltimore that the city of

12 Baltimore needs to have a child's savings

13 account.

14 Now some of you may remember the

15 little upheaval we had in Baltimore a few years

16 ago. That was because of lack of hope.

17 The one -- and Andrea and Jose can

18 talk more about this -- is that that account

19 gives parents hope that their child will have a

20 chance to go to college, even if they didn't. 

21 And that is a big factor that we overlook.

22 And so, I think maybe we need to

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1 revisit that account and look at it a little

2 differently and how we can begin to promote it

3 more and use it as a way, one of those instant

4 accounts. It is a small thing, but it brings

5 hope immediately. It is not something you have

6 to wait five years to get started to see that

7 first account go in.

8 And if you haven't seen the video, we

9 are going to air it on our show, the documentary

10 that we did on the account. It is very moving to

11 see the parents and how they feel and other

12 members, how they feel about just having an

13 account.

14 I know they are not related, but I

15 just wanted to get back to your question.

16 MEMBER LEVERE: Let me tell you, we

17 are in the organizing process in Baltimore as we

18 speak.

19 MR. BOSTON: Great. Thank you.

20 MEMBER LEVERE: Only because of you.

21 (Laughter.)

22 MR. BOSTON: Thank you.

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1 MEMBER MURPHY: So, I only have one

2 last question. Who has Alaska?

3 MR. HALL: I do.

4 MEMBER MURPHY: So, we like to have

5 meetings in December.

6 (Laughter.)

7 MR. VILLAFRANCA: Mr. Murphy, I might

8 also say he has Hawaii, too.

9 (Laughter.)

10 CHAIRMAN GRUENBERG: Well, I want to

11 thank the panel and just remind everybody --

12 (Applause.)

13 I would just remind everybody that we

14 do have this session on tape. So, we have it on

15 the record.

16 (Laughter.)

17 MEMBER MURPHY: Thank you.

18 (Whereupon, the above-entitled matter

19 went off the record at 2:30 p.m. and resumed at

20 2:38 p.m.)

21 MS. EVANS: Good afternoon.

22 My name is Lessie Powell Evans, and I

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1 am Chief of the Community Affairs Section of

2 FDIC's Community Affairs Program. I am pleased

3 to convene this panel: Assessing Resources for

4 Affordable Mortgage Lending.

5 Providing technical assistance and

6 information to banks is a key part of the FDIC's

7 Economic Inclusion Strategy. As you have heard

8 from the previous panel, five economic inclusion

9 opportunities guide our work. This panel will

10 address opportunity for, but acknowledges the

11 important role of community banks in providing

12 mortgage credit.

13 This economic inclusion opportunity is

14 encourage insured depository institutions to make

15 available prudently-underwritten, affordable, and

16 responsible mortgage credit for low- and

17 moderate-income households.

18 Mortgage lending is an important

19 element of many community banks' business

20 strategies. Community banks offer mortgage

21 products and services designed to meet the

22 particular needs of their communities, including

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1 rural areas and low- and moderate-income

2 borrowers.

3 As you know, offering affordable

4 mortgage lending to a wide range of customers

5 broadens bank/customer relationships and

6 demonstrates the institution's interest in

7 helping them build financial success.

8 To determine how the FDIC could

9 contribute to the efforts by banks to offer

10 affordable and responsible mortgage credit for

11 LMI households in underserved areas, the FDIC met

12 with banks across the country individually and in

13 small roundtables. Bankers provided valuable

14 insights into the needs for affordable mortgage

15 credit in the communities they serve.

16 They also discussed the opportunities

17 and obstacles in using federal and state lending

18 programs, as well as the pros and cons of holding

19 loans in portfolio versus selling loans on the

20 secondary market.

21 Banks described how they use federal

22 programs, sometimes in combination with other

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1 federal programs, such as the Federal Home Loan

2 Bank, other state programs, to expand capacity

3 and to serve a broader consumer base.

4 Some bankers said that very small

5 banks do not have the specialized staffing or

6 departments to offer complex mortgage products

7 and services, and feel that the risks and the

8 costs of origination are not worth taking without

9 more resources or additional risk mitigation.

10 Some banks said that, while they

11 wanted to be involved in mortgage lending, it is

12 difficult to find the time to do the research of

13 potential programs, and it is challenging, also,

14 to find and retain trained mortgage staff,

15 particularly in rural areas.

16 From these meetings, we concluded that

17 community banks could benefit from more

18 information in order to compare mortgage products

19 and services, so that they could make an informed

20 decision about which programs are the right fit

21 for their business plans and strategies, to

22 improve lending options for their communities.

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1 In response to requests for

2 information from bankers on affordable mortgage

3 lending credit that is centralized and easy-to4 understand, the FDIC created the Affordable

5 Mortgage Lending Guide and the Online Center,

6 which is a web page designed to compare a variety

7 of current affordable mortgage programs and to

8 identify the next steps to expand or initiate

9 affordable housing lending.

10 The Center, basically, hosts the

11 Affordable Mortgage Lending Guide, which is a

12 three-part series of publications. Part 1

13 provides information on federal agencies. 

14 That's HUD, HUD's FHA, USDA, VA, and the

15 government-sponsored enterprises, Fannie Mae and

16 Freddie Mac.

17 Part 2 focuses on state housing

18 finance agencies. Part 2 describes the programs

19 and products offered by state housing finance

20 agencies. Since each state has a finance agency

21 that has different products, this Guide offers a

22 range of information on, first, mortgage

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1 products, down payment and closing costs,

2 mortgage tax credits, homeownership counseling

3 programs that can facilitate mortgage lending by

4 insured depository institutions.

5 As you know, many of these products

6 can be used in conjunction with the federal

7 programs as well as the GSA programs. And as you

8 know, many of the banks use what we call layering

9 in the multifamily world or stacking in the

10 single-family world to actually make the products

11 blend together to make them more affordable.

12 And part 3 of the Guide, which I also

13 have here, describes the products and services

14 offered by Federal Home Loan Banks. Since each

15 of the Federal Home Loan Banks has different

16 products and services, the publication provides

17 general information on housing programs, their

18 affordable housing programs, the community

19 investment programs advances, the Mortgage

20 Partnership Finance Program, and the Mortgage

21 Purchase Program, which can help facilitate

22 mortgage purchase, mortgage financing for

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1 community banks. Again, all of these programs

2 can be used in conjunction to make them more

3 affordable to borrowers.

4 Essentially, the Guide is a technical

5 assistance resource that provides an overview of

6 a variety of programs. It compares the different

7 programs. It helps identify the next steps for

8 community banks to provide program participation.

9 These programs discussed in the Guide

10 can provide pathways for creditworthy borrowers

11 to face barriers to homeownership, particularly

12 affordability challenges. They represent

13 business opportunities for community banks

14 looking for responsible, sustainable financial

15 products to add to their lines of credit.

16 Our panel today will walk through our

17 new resource tool and discuss our outreach and

18 potential impact. It is my pleasure to introduce

19 the panel to you today. Their detailed

20 background information is in your packet.

21 So, first, you will hear from Sandra

22 Kerr. Sandra is actually located in the Command

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1 Center because she is going to actually walk you

2 through the Online Center. So, Sandra is a

3 Senior Community Affairs Specialist with DCP in

4 the FDIC here in Washington, D.C. Sandra's

5 primary focus at FDIC is external communications

6 and housing and community development issues.

7 Next, you will hear from Ron Haynie. 

8 Ron is the Senior Vice President of Mortgage

9 Finance Policy at the Independent Community

10 Bankers Association, ICBA. Ron has more than 35

11 years' experience in mortgage lending and

12 banking. He spent 20 years at Freddie Mac. And

13 in his role for ICBA's Services Network, he is

14 responsible for providing competitive mortgage

15 lending products, programs, and services that

16 will enable ICBA community bank members to grow

17 their mortgage business. Ron will discuss how

18 the Guide has been useful to community banks.

19 And then, we'll hear from Teresa

20 Perez, who is the Regional Community Area

21 Community Affairs Manager for the Kansas City

22 Region.

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1 So, Sandra?

2 MS. KERR: Good afternoon, everyone.

3 Instead of talking about the

4 Affordable Mortgage Lending Center, I thought it

5 would be best just to guide you through it, show

6 you how easy it is to use, and some of the

7 available features on the web page.

8 It has recently been brought to my

9 attention that every time I do this and I click

10 on a new feature, I say it's my favorite.

11 (Laughter.)

12 And then, I go to the next one, and

13 it's like, no, that's really my favorite.

14 Really, really, this is absolutely my

15 favorite part of this web page. I am going to

16 limit myself to three favorites today. I am

17 going to try to abide by that. We'll see if I

18 can do that or not.

19 Before we start talking about and

20 showing you the Affordable Mortgage Lending

21 Center on FDIC's website, I want to talk a little

22 bit and give you some statistics about the

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1 distribution of the publications as well as the

2 use of the web page.

3 We launched our first book on

4 September 15th of last year, 2016. We also

5 launched the web page at the same time. Since

6 that time, we have been averaging 146 subscribers

7 to the web page every single week. We have over

8 4500 subscribers. To date, we have had 38,000

9 page views of the Affordable Mortgage Lending

10 Center from 12,500 individuals.

11 Sections of the Guide have been

12 downloaded more than 6,000 times. No surprise,

13 you can download an individual part, if you just

14 want to know about a particular program, but you

15 can also download the entire publication. The

16 top three downloads are part 1, part 2, and part

17 3 of the entire publication.

18 (Laughter.)

19 And we also have this available to

20 order the books. If you would like a hard copy,

21 it's available on FDIC's online catalog. It is

22 free. Our Fulfillment Center does a fabulous job. 

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1 It will get to you quickly.

2 To date, we have had 4,000 copies of

3 the publications ordered online. And in addition

4 to that -- you have heard from so many of our

5 regional managers -- we have distributed 2500

6 copies of each of the publications to the

7 Regions. On a weekly basis, they are giving them

8 out at meetings, at events, when they go to talk

9 to people. So, we are getting a very wide

10 distribution.

11 And then, finally, FDIC, they tweeted

12 about part 3 of the publication on April 6th. 

13 Our third publication about the Federal Home Loan

14 Banks just went out again on April 6th, and it

15 was the most popular FDIC tweet in the past three

16 months.

17 (Laughter.)

18 MEMBER LEVERE: Was it your favorite?

19 (Laughter.)

20 MS. KERR: It clearly was.

21 Wait. Let me get to the good part

22 that really is my favorite, which is with

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1 appearances in over 10,000 tweeter feeds. That's

2 not Kardashian-worthy, but, by evidence, I think

3 we are doing pretty well.

4 (Laughter.)

5 With that, I want to show you the web

6 page. I want to go through very quickly, and I

7 apologize for going through so fast, but I have

8 10 minutes to cover what you could spend all day

9 on this web page.

10 Again, I want to emphasize that

11 everything up here, we had to draw the line

12 somewhere. So, all of the programs are for

13 single-family home purchase. We don't get into

14 multi-family; we don't get into rental. These

15 are federal, state, and Federal Home Loan Bank

16 programs that deal with single-family mortgage

17 purchase.

18 With that, I'm going to step behind

19 the screen. So, if you all will look up at the

20 screen where we've got the web page, I'll just

21 continue talking and clicking.

22 The first thing that I would like to

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1 show is on the front page we have general

2 information about the Affordable Mortgage Lending

3 Center itself. If you go to the Affordable

4 Mortgage Lending Guide, that brings up all three

5 publications.

6 We do have resources, and there we do

7 studies, valuable papers, factsheets, and others

8 from all of the federal agencies. And then, we

9 have activities and events from FDIC.

10 On the left side -- and this is the

11 part I use almost exclusively -- are the quick

12 links, which I consider are my cheat sheets. I

13 can find anything from there quickly with just

14 one or two clicks.

15 So, we are going to go first to part

16 1. There you will see you can find the entire

17 Guide, and this is on federal programs plus

18 Fannie Mae and Freddie Mac.

19 We have an introduction. We also have

20 a program matrix that compares every single

21 federal program and what they offer and if there

22 are special benefits. I am not going to go

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1 through all of that today.

2 But I do want to just, for example,

3 pick HUD. Every single section has an overview

4 of HUD, FHA, and their programs. In this, we do

5 a general overview. We do benefits. I'm trying

6 to go slow because I tend to scroll through these

7 very quickly. We give all the programs that are

8 available for single family. And then, most

9 importantly, we talk about doing business with

10 the FHA.

11 We discuss delivery options because we

12 know that bankers use a wide variety of delivery

13 options. They may be a seller servicer, but they

14 may also use a third-party originator or a

15 correspondent. So, we talk about how they can

16 use these programs with those different options,

17 and we talk about systems requirements, quality

18 control that is necessary for the program.

19 And then, finally, every single

20 section, we have a resource section. This is one

21 of my favorite parts.

22 And why we encourage you use the web

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1 page is because all of these lines are direct

2 links. If anyone, for example, has looked at the

3 HUD Handbook, which consists of 4,000 pages, when

4 we talk about a specific program and resources,

5 we tell you where to go within that Handbook to

6 find the information or we take you directly to

7 the Handbook, to that section itself.

8 Now let's go to federal agencies and

9 government-sponsored enterprises on the left. 

10 Let's say, for example, the book is great to look

11 through if you aren't as familiar with all the

12 programs, but let's say you know exactly the

13 program that you want to look up. There's every

14 federal program for single-family housing.

15 I am going to just click on the first

16 one, and this is property improvement loan

17 insurance offered by FHA. I am not going to

18 click on all of these, but we would have, if you

19 want to do business with FHA, this is the direct

20 -- if you look down under applications, that

21 takes you directly to the application to become a

22 lender. We also have the web link that gives you

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1 HUD's information about the program as well as

2 contact information.

3 Each one of the different programs is

4 a very brief outline of what is available. We do

5 borrower criteria, which you can see here; income

6 limits; what the credit scores that are needed;

7 if there is any special advantage for first-time

8 home buyers; if you can own more than one house;

9 if there are any advantages for special

10 populations or persons with disabilities.

11 We also offer the potential benefits

12 and potential challenges of these programs. We

13 are trying to be very transparent and really just

14 give the bankers and others that use these

15 publications all the information that we can.

16 Finally, we give the loan criteria. 

17 What are the loan limits, the loan-to-value

18 limits; are ARMs available; is homeownership

19 counseling required, et cetera.

20 One thing that I do want to point out,

21 Mr. Eakes brought up earlier about student debt. 

22 We felt this was very important because we find

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1 that different federal programs and Fannie and

2 Freddie count student debt differently. So, we

3 put a sentence in every debt-to-income ratio; you

4 will find a sentence on how this program counts

5 student debt. I think that is very important for

6 our community bankers and others to know.

7 Now my really truly -- and this is my

8 last favorite I'm going to use -- but my true

9 favorite that we have in this book is the little

10 section you will see on the top right that says

11 similar programs. Say you have a customer and

12 this program isn't exactly right. There's

13 something that's just a little bit off that

14 doesn't quite fit that customer. We put in -- we

15 did the research. Here are two other programs

16 that are very similar. So, we suggest that you

17 go look at these programs, and perhaps one of

18 these will be better suited to your customer.

19 And then, again, resources. And to

20 show you an example, for this particular program,

21 HUD requires a dealer/contractor application. 

22 You click on that. It takes you straight to HUD. 

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1 It takes you right to the application you need to

2 complete. And we've got those resources for

3 every single program in our Guides.

4 Now we'll go to part 2. And I know

5 that I have to be quick here. So, if we go to

6 the quick links, we go to every housing finance

7 agency in the country by state. Lessie has

8 already discussed the makeup of this publication,

9 as well as the Federal Home Loan Banks. We

10 talked generally at the beginning about the

11 general programs, but here we provide the very

12 specific information.

13 Mr. Barr, for you, we'll go to

14 Michigan.

15 (Laughter.)

16 There you go. The first page, what we

17 did was put in information very specific to

18 Michigan. We've got the Department of Veterans

19 Affairs, how to contact, as well as USDA, HUD.

20 FHA has Homeownership Centers. So, this is the

21 one for Michigan.

22 But, very important, it is a great

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1 part feature. At the bottom you will see HUD2 approved counseling agencies. If you click on

3 that, that lists every single HUD-approved,

4 certified housing counseling agency in the State

5 of Michigan with their contact information. So,

6 within a few clicks, you can find out almost

7 anything you want to know.

8 Let's go to the housing state. The

9 Michigan State Housing Development Authority --

10 and what we do is we provide the programs that

11 are available. They have first lien mortgage

12 products, what the uses are for these products,

13 if they offer down payment assistance, mortgage

14 tax credit certificates. And in Michigan we also

15 have an IDA program to help save for

16 homeownership.

17 Once again, why we ask you to go to

18 the web page, all of those web pages take you

19 directly to information that you want to know. 

20 Especially for a banker that is looking to lend,

21 here's everything in one click to know about all

22 these programs and what it takes to become a

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1 lender.

2 Finally, we'll move to our latest

3 book, which are the Federal Home Loan Banks. If

4 we go to the quick links for the Federal Home

5 Loan Banks, up pops a map with every Region,

6 Federal Home Loan Banks in the country.

7 Let's go to Atlanta. You'll see that,

8 again, we list all of the states served by the

9 Federal Home Loan Bank of Atlanta. We list the

10 affordable lending services as well as the

11 affordable lending products that they offer.

12 Something different that we do,

13 because we wanted to give you an idea of how much

14 money is available, we give the historical volume

15 for the AHP program and for the Specialized Set

16 Aside Program.

17 The next page shows you if they

18 participate in the NPF programs. And another

19 wonderful feature that we put in here is what is

20 the timing that you can expect from this, the

21 timing of application to funding if you're a

22 banker, so you can prepare your customers.

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1 What are the security documents that

2 are needed, and how are the funds distributed? 

3 For example, in Atlanta it's first come, first

4 serve.

5 Then, we show all of the affordable

6 homeownership programs that are grants that are

7 available for low- and moderate-income home

8 buyers. We give all of the information about how

9 much is available, how much money is available. 

10 Is it for targeted populations? You'll see under

11 community partners, this is a very specific

12 program for firefighters, law enforcement, and

13 others. Continuing on, Atlanta also has a

14 wonderful program for veterans.

15 And then, at the very end, once again,

16 we have helpful web pages.

17 That is an incredibly-brief overview

18 of the information available on the web page. I

19 do want to make a couple more points.

20 The need for accuracy in information

21 and timely information. This, we are committed

22 to updating this information annually. Right

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1 now, we are working on part 2, the state housing

2 finance agencies. We have heard back from about

3 40 percent of them right now, making changes,

4 updates to their programs.

5 The next one that we'll tackle are the

6 federal agencies. We're waiting on that. FHFA

7 has just developed the duty to serve for Fannie

8 Mae and Freddie Mac, which is going to be very

9 interesting because the target is underserved

10 populations, rural communities, and manufactured

11 housing.

12 We're very excited to see what happens

13 with those targets. Fannie and Freddie had to do

14 their implementation plan by April 17th. They

15 are negotiating until the end of the year. They

16 are going to implement in 2018. So, we want to

17 have that information and have it be accurate on

18 our web page.

19 And then, after that, because we just

20 did a Federal Home Loan Bank Book, that will be

21 the third book we'll tackle, probably toward the

22 end of next year.

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1 I'm on the wrong page. I believe that

2 is the end of my discussion.

3 We are going to, again, try to keep

4 this as up-to-date as possible. The best way to

5 find the updates is going to be on the web page. 

6 We encourage people to go there. That's where

7 you can find the links, and that's where we are

8 going to update the information.

9 You can order the books online at

10 FDIC's online catalog. Once again, they are

11 free. You can find it under bankers' resources.

12 Thank you.

13 MS. EVANS: Then we will hear from Ron

14 Haynie.

15 MR. HAYNIE: Well, thank you, and

16 thank you for inviting me here today. I

17 certainly appreciate the opportunity.

18 For starters, I would just like to say

19 hats off to the FDIC and Sandra and the team that

20 put this resource together. This was no small

21 task. You talk about herding cats. That is

22 probably what this was like, to get all the

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1 details from all these different various groups

2 and agencies. I mean, that is an incredible

3 feat. And so, thank you so much for doing that.

4 When I first met with her and she told

5 me what she was going to do, I said, that's a big

6 -- are you sure you're going to do that?

7 (Laughter.)

8 And anyway, the end product is just

9 outstanding. I think, obviously, the interest in

10 it by the downloads and the views and the fact

11 that you're shipping out hard copies of this,

12 which I like personally -- I had Sandra ship me

13 some hard copies and I have distributed them.

14 According to my wife who works for a

15 community bank and is an underwriter, she loves

16 it. Again, for the reasons that Sandra cited, in

17 that it is easy to use, it's intuitive, and it

18 provides that quick dose of information that

19 allows you to size it up.

20 And so, in thinking about this, if

21 you're in a community bank, you know, we run

22 pretty lean. There's not a lot of staff there. 

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1 And so, when you have a borrower that comes in

2 and is looking for a financing for a home and

3 they don't fit the traditional programs, right,

4 and especially this happens a lot in rural and

5 small town communities. I had the privilege of

6 working for a community bank out in Idaho, and

7 for somebody who grew up here on the East Coast

8 in the Washington, D.C., area and go to Idaho,

9 that's culture shock, right?

10 (Laughter.)

11 That is culture shock. And so, it was

12 an incredible experience and I'm so thankful I

13 had it. But the people come in and they have a

14 variety of jobs, and they want to buy this house. 

15 And it is not a very expensive property, but

16 there's all kinds of interesting nuances about

17 their particular background. They bring in their

18 family. The whole family comes in, I mean, and

19 it's quite an event. And it is not a cookie20 cutter loan. It's not a cookie-cutter loans.

21 And so, then, finding the resources,

22 finding the programs that are out there, so you

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1 will be able to make this loan to this consumer

2 is definitely a challenge. And in a small

3 institution you don't have a lot of time, nor do

4 you have a lot of resources to say, hey, can I

5 call up my Research Department and have you guys

6 go figure this out for me?

7 (Laughter.)

8 And then, we're going to train

9 everybody, right? I mean, it takes time. And

10 so, there's a lot -- you know, the good news is

11 there are a lot of resources out there. The bad

12 news is there's a lot of resources out there, and

13 I can't figure out which ones I can hone-in on

14 quickly and use to help this borrower.

15 That's what these Guides do. It

16 actually gets you there to like, okay, this is

17 where I can go. And if that one doesn't work

18 out, here's a couple of other ideas that might. 

19 And so, it is incredibly powerful. Again, I just

20 can't thank you enough.

21 You know, the thing about community

22 banks is that, you know, we are positioned, we

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1 are right there on the ground. You know, you're

2 local. You know what's going on in town. You

3 know what's going on in that community. And you

4 know the struggles that people face, and they are

5 all different. No matter where you're at,

6 everyone's got something.

7 And whether it's a rural community

8 where you are dealing with, you know, this is a

9 single-wide sitting on eight acres someplace, but

10 it is a residential dwelling. It's not a farm,

11 you know. How do I make that work? How can I

12 get that loan sellable to Fannie Mae and Freddie

13 Mac or up to a correspondent? And these are

14 real-live questions that you face every single

15 day.

16 And so, anything that can be done to

17 help that process along will, obviously, help you

18 be able to serve your customers. It helps

19 community banks to serve their customers.

20 In a small town -- and I know this is

21 the digital age where everybody does everything

22 online -- but in a small town, folks do still

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1 come and walk into the local bank and they say,

2 you know, I have a checking account here. I'm

3 buying a house. Do you all make mortgage loans?

4 Unfortunately, over the last couple of

5 years, a lot of community banks have gotten out

6 of that business because of it is a very complex

7 business. It is one of the most highly-regulated

8 businesses out there, and I'm sure the FDIC, you

9 all have to go out and you have to examine banks

10 for compliance, and I'm sure you hear it. You

11 hear it firsthand.

12 I know that we have had a lot of

13 banks, a lot of member banks that have just

14 thrown up their hands and said, I can't do this

15 anymore. I only make a handful of loans a year. 

16 I can't keep somebody trained. I can't afford

17 the technology to do it. And so, it is very

18 challenging.

19 One of the things, sort of my own

20 personal mission at ICBA is trying to keep banks

21 encouraged to be in this business because this is

22 sort of the crux of why you are there. You know,

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1 you're helping. Certainly, you're making small

2 business loans and agricultural loans and

3 commercial loans, and all those good things. But

4 it is also making home loans, putting people in

5 their homes, helping them build families, that

6 reinforces the strength of that community. And

7 those become really good, long-term bank

8 customers for you.

9 And so, keeping bankers interested in

10 making mortgage loans is one of my goals in life,

11 and this certainly goes a long way to doing that.

12 So, I would just say that, for

13 community banks to be in this business,

14 technology is certainly important. You have to

15 hire and train people. I tell community bankers

16 all the time, you can't do this cheap anymore. 

17 Banks, don't get me wrong, I love bankers to

18 death, but they tend to find a cheap way out. 

19 And sometimes you just can't do that. You have

20 to be able to hire people. You've got to train

21 them. You have to invest in them. And then, you

22 go out and you try to grow this business. This

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1 is one of those tools that can help you get

2 there. It really is.

3 You know, I could go on forever, but

4 I would just say, you know, thank you again to

5 the FDIC for putting the resources behind it, the

6 commitment to do this. It certainly has been

7 valuable. I think it is going to pay off quite

8 handsomely where we will have more people making

9 mortgage loans and where borrowers will get

10 served.

11 So, thank you.

12 MS. EVANS: Thank you, Ron.

13 Teresa?

14 MS. PEREZ: Thank you, Ron, Sandra,

15 Lessie, and Committee.

16 And I'm the last speaker today. So,

17 everybody --

18 (Laughter.)

19 I will speak on community affairs work

20 in promoting the Affordable Mortgage Lending

21 Guidance Center specifically and access to

22 affordable mortgage credit more broadly.

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1 Throughout the FDIC's six Regional and

2 two Area Offices, Community Affairs has

3 successfully engages with community banks and

4 other stakeholders focused on access to

5 affordable mortgage lending credit. Today I will

6 share examples from four Regions.

7 First, the Chicago Region held a full8 day workshop on October 12th in Dearborn,

9 Michigan, at which FDIC local and national

10 Community Affairs staff led an interagency11 sponsored single-family mortgage credit workshop

12 designed to help provide affordable mortgage and

13 refinancing solutions for LMI and other

14 underserved consumers.

15 The session highlighted effective ways

16 for banks to make prudently-underwritten and

17 sustainable mortgage loans and identified

18 opportunities to form partnerships designed to

19 help increase access to affordable mortgage

20 credit.

21 Ninety participants that included

22 banks, nonprofits, and others interested in

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1 mortgage lending attended from across the State. 

2 Based on comments received during the event and

3 in the evaluation, respondents felt strongly that

4 the workshop improved their understanding of the

5 various mortgage credit programs discussed and

6 increased their knowledge relative to helping

7 consumers access affordable mortgage credit.

8 Second, on April 6th, the New York

9 Region cosponsored an interagency single-family

10 mortgage credit workshop which featured the

11 announcement of the release of part 3 of the

12 Affordable Mortgage Lending Guide which provides

13 in-depth descriptions for each of the Federal

14 Home Loan Banks' products and services

15 nationwide.

16 There was high-quality participation

17 from the other cosponsors, the Federal Home Loan

18 Bank of Atlanta, the Federal Reserve Bank, and

19 OCC. The Federal Home Loan Bank of Des Moines

20 was also in attendance for the announcement. 

21 Sixty-five in total were in attendance.

22 In addition, there was great

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1 participation from the audience and immediate

2 unsolicited feedback provided by some attendees

3 who expressed appreciation for this convening.

4 Third, the Kansas City Region

5 cosponsored an interagency roundtable on April

6 19th titled, Expanding Affordable Mortgage Credit

7 in Housing in Rural Communities in Kansas City,

8 Missouri. This event focused on increasing

9 awareness of safe and responsible mortgage

10 lending products and services available in rural

11 communities and helping bankers identify

12 opportunities to form partnerships designed to

13 increase access to affordable mortgage credit.

14 A total of 47 participants attended

15 this event, the vast majority being community

16 bankers from towns with a population of 2500 or

17 less. Two attendees stated that the Guide was

18 the best technical publication they have ever

19 received from a regulatory agency.

20 (Laughter.)

21 Finally, next week the Atlanta Region

22 is cosponsoring an interagency CRA community

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1 development forum designed to present bankers

2 with information about the Savannah Affordable

3 Housing Fund and existing opportunities and needs

4 for affordable housing in Chatham County.

5 It will provide bankers with

6 opportunities to network with community-based

7 organizations and the City of Savannah Housing

8 Department to implement affordable housing

9 initiatives.

10 Four goals have been established for

11 this event. One, to have at least one

12 representative from each bank operating in the

13 Savannah area attend the forum. Two, to have one

14 representative from each nonprofit in the

15 Savannah area focusing on affordable housing

16 attend the forum. Three, to expose bankers to

17 the Fund and affordable housing opportunities in

18 the Savannah area. And, four, to encourage

19 bankers to work in partnership with nonprofits

20 and the Savannah Housing Department to

21 successfully implement affordable housing

22 initiatives.

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1 It is also noteworthy that Community

2 Affairs promotes access to affordable mortgage

3 credit through other varied opportunities, such

4 as through the submission of news articles,

5 participation in statewide housing events as a

6 speaker, workshop convener, meeting attendee, or

7 exhibitor.

8 For example, Community Affairs has

9 submitted articles in the DCP Regional

10 Newsletters that are distributed to FDIC11 supervised banks regarding the Affording Mortgage

12 Lending Guides and Center. These newsletters

13 exist in each of the six FDIC Regional Offices.

14 Next month, Community Affairs will

15 serve as an exhibitor at the Pennsylvania Housing

16 Finance Agency's Annual Conference that will draw

17 in excess of 700 participants, of which at least

18 a third are bank representatives.

19 And on an ongoing basis, Community

20 Affairs promotes access to affordable mortgage

21 credit throughout Region participation and

22 meetings convened by other stakeholder

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1 organizations across the country.

2 In summary, Community Affairs has

3 worked in partnership with the other federal and

4 state financial institution regulatory agencies

5 and other federal and local partners, such as the

6 Federal Home Loan Banks, HUD, VA, and USDA, to

7 help promote access to affordable mortgage

8 lending credit. This outreach is integral to

9 supporting the FDIC and DCP mission and goals as

10 well as addressing the goals and strategies

11 outlined in the FDIC Economic Inclusion Strategic

12 Plan.

13 Thank you.

14 MS. EVANS: Thank you.

15 So, we'll open for questions, but I

16 wanted to also seek advice from the Committee. 

17 So, I wanted to ask a series of questions and see

18 if you can give us some guidance.

19 So, one question would be, what other

20 resources can the FDIC provide community bankers

21 regarding mortgage lending?

22 The second question: the three

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1 publications focus on single-family home

2 purchase. Are there other topics that would be

3 of value that FDIC should explore?

4 And then, how could we strengthen our

5 outreach efforts to better serve community banks?

6 And then, finally, are there

7 suggestions that you have on partnerships at the

8 state or local level that could help leverage

9 resources?

10 MEMBER McCOY: So, I wanted to say

11 this is so exciting. Last night I subscribed.

12 (Laughter.)

13 I'm going to go back and start roaming

14 through the website. It is such a heavy lift and

15 it is so useful.

16 Just a comment and a question. As you

17 may know, I'm a law professor. And last fall I

18 held an Affordable Mortgage Research Conference

19 at my law school, and we're publishing the papers

20 about what features of affordable mortgages

21 reduce default risk. And they will be coming out

22 this summer. And so, Sandra, I'll send them to

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1 you, if you're the right person. They will be

2 online.

3 MS. KERR: Yes.

4 MEMBER McCOY: And then, the question

5 I have is, it appears that the Center is banker6 facing, and I'm thinking that HUD housing

7 counselors and, then, borrowers would love to

8 have their version of a borrower-facing or

9 counselor-facing resource that would be somewhat

10 simpler, I'm sure. And I didn't know if it is

11 delicate to be identifying individual lenders who

12 offer a particular product.

13 MS. KERR: Yes, I'm electronically14 challenged.

15 (Laughter.)

16 In the Guides -- and I forgot to

17 mention this -- we went around the around the

18 country and we interviewed different bankers, and

19 we have got banker conversations within the

20 Guide, but they are very honest about the pros,

21 the cons, what was difficult with working with

22 the program, and what was very good about the

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1 program.

2 What we tend to do is we don't give

3 the banks' names or the individuals' names. We

4 use it as a group discussion. So, that way, you

5 are getting multiple banks' opinions.

6 One thing that we have actually found

7 in promoting this is, while our primary focus on

8 this was for community bankers, to really give

9 them a really good idea of these different

10 programs, they have been tremendously embraced by

11 other parts of FDIC who like this to show to

12 bankers, but also nonprofits. And we feel that

13 this is a really good way for nonprofits to learn

14 what bankers need to know when they are

15 approaching them about maybe working together. 

16 This is the criteria that a banker is looking

17 for. So, we feel it is a very good training tool

18 for nonprofits as well.

19 MS. EVANS: Housing counselors as well

20 as nonprofit developers.

21 MS. KERR: Right, absolutely.

22 MEMBER McCOY: But I think if there

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1 would be something for individual borrowers,

2 possibly push them to housing counselors, then

3 advise them about what lenders they may want to

4 look at?

5 MR. BOSTON: Could this be another

6 add-on to Money Smart?

7 MS. KERR: Money Smart does have a

8 module right now on housing that they are looking

9 at. So, I think that it does go very much hand10 in-hand with that.

11 MS. EVANS: So, we are updating Money

12 Smart.

13 MR. BOSTON: Right, but I think you

14 have some material that might be a little

15 deeper --

16 MS. KERR: Yes.

17 MR. BOSTON: -- that would be helpful

18 to Pat's point about for the consumer --

19 MS. KERR: Consumers.

20 MR. BOSTON: -- as part of the Money

21 Smart Program because you take down some issues

22 about Money Smart payment.

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1 MS. KERR: Thank you.

2 MEMBER BARR: I was going to make a

3 suggestion, which is along the lines of usual

4 suggestions of the Committee. You're doing

5 really great things, and like why don't you do

6 500 more of them?

7 (Laughter.)

8 This is really terrific. I wonder

9 whether you have thought about -- and maybe this

10 is something that Ron could do instead of you

11 guys -- but flipping it around. So, instead of

12 having a set of materials that people go through

13 to figure out whether a loan fits, you know, plug

14 in the loan feature the bank wants to sell into a

15 program, and it says it's eligible for this; it's

16 not eligible for that. Or maybe have a little

17 dial in it and you're not eligible, but if you

18 dial it this way, you would be eligible. ICBA

19 will sell it to its members. Or FDIC will give

20 it away for free.

21 (Laughter.)

22 MR. HAYNIE: There actually is

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1 technology that actually does this, product and

2 pricing engines. And it is more geared, though,

3 to your kind of standard cookie-cutter kind of

4 product. But that is an interesting idea.

5 And I was going to comment, also, for

6 what Patricia was saying. Being the parent of

7 six millennials, four of which are now

8 homeowners, which was absolutely amazing to me

9 anyway, that they could actually come to this.

10 (Laughter.)

11 But a key point to this whole thing,

12 I believe, is how do you get the housing counsel

13 industry, if you will, more engaged? Because I

14 can tell you what I told my kids when they said,

15 Dad, you know, we're looking at a house. We

16 think we want to get one, dah, dah, dah, dah,

17 dah. And I said, you know, the usual stuff. You

18 don't have any money. What do you mean you don't

19 know how to buy a house? Have you saved

20 anything? Well, I don't know. Right.

21 (Laughter.)

22 But, anyway, I said, do you know what

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1 you need to do? You need to go online, because

2 that's where you do everything, and you need to

3 find the local housing counselor in Frederick

4 County, Maryland. And sure enough, that's what

5 they did. That's what my son and his fiancé did.

6 Because they first had gone to a

7 normal, a regular mortgage broker, or whatever,

8 because the realtor referred them to that. And

9 this person was like, I could tell the person was

10 taking them down the wrong path. It wasn't going

11 to work.

12 And so, I referred them to a counselor

13 and I said, you need to go talk to this

14 counselor, and you need to go visit and you need

15 to go take that counseling course and learn about

16 being a homeowner.

17 And so, they did, which I was amazed

18 that they did this.

19 (Laughter.)

20 But they did. And thank goodness for

21 the housing counselor because she referred them

22 -- she actually had the ability to grab these

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1 resources and say, well, you would qualify for

2 this and you could probably get that, and we'll

3 put these things together. And here's a lender

4 that will do that. Because not every lender will

5 do it. You know, a lot of them just want the

6 cookie-cutter loans. Get them done, get them

7 done, get them done.

8 And so, it is, how do we get the

9 housing counseling agencies out in front more? 

10 And I think that is something, obviously, ICBA

11 could support you on, in finding a way to get

12 that message out: work with your local housing

13 counselors and be on that list, right? So, that

14 would require them to become knowledgeable about

15 the programs and be on that list. And so,

16 certainly, that is something we could work with

17 you all on.

18 MR. BOSTON: Now, if I'm not mistaken,

19 isn't housing counseling about to be cut by this

20 Administration? I think I got the email that

21 that was one of the issues that they're thinking

22 about actually cutting from the federal budget.

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1 But they play a major role, and people

2 don't know that it was because of housing

3 counselors that many Americans did not lose their

4 home. The people who went through housing

5 counseling actually did well keeping their homes.

6 MS. KERR: And many of the programs

7 from the state housing finance agencies, even

8 from Federal Home Loan Banks, encourage or

9 require housing counseling. It's considered that

10 it is essential.

11 MR. BOSTON: Right.

12 MEMBER LEVERE: The Urban Institute

13 has done multiple studies on this.

14 MS. KERR: Exactly.

15 MR. BOSTON: Yes, they have.

16 MS. KERR: Which I do have to give a

17 shout out to the Urban Institute, who helped us

18 with these publications, did tremendous work.

19 And we also have a working group at

20 the FDIC made up of many of the different

21 branches of DCP that all work together, Research,

22 Policy, Community Affairs. They came together to

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1 really create these books and did a tremendous

2 job with them.

3 MEMBER EAKES: I just wanted to share

4 two cents' worth about why this work is so

5 important, at least for someone like me. I

6 started making home mortgage loans 33 years ago,

7 and they were all families that didn't fit the

8 profile. They were different. They wouldn't

9 qualify for a Fannie Mae or Freddie Mac loan or

10 even an FHA loan.

11 And so, I think all of us know why it

12 is so important in the community for people to

13 have a first home that is really for many

14 families it is their only way to enter the middle

15 class. It is a gradual forced savings event. 

16 So, we all know that.

17 The part that I think is not as well18 known is how critical this is for the survival of

19 community-based financial institutions. And it

20 started at $77 and has grown, but if you are

21 under a billion dollars as a community bank, from

22 $25 million to a billion, you cannot survive; you

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1 cannot survive unless you have mortgage lines as

2 part of your portfolio. You can't survive. I'll

3 just say it, and I believe it. I feel like I'm

4 certain of it.

5 And the problem with that is that what

6 community people want is a 30-year fixed-rate

7 mortgage. And if you hold that on your books,

8 you need to be able to hedge the interest rates. 

9 So, in addition to the resources of what loans

10 you can sell, whether it is FHA or

11 Fannie/Freddie, community banks and community

12 credit unions need to be able to hold home loans

13 on their books in order to generate enough

14 income. It is not that they need it to serve all

15 their customers because no financial institution

16 can mortgage lines to more than about 3 percent

17 of their total customers without fully utilizing

18 all the money they've got, because mortgage is so

19 much bigger than what the average savings is per

20 family.

21 But, if we don't figure this out and

22 make it so that people in the banks are able to

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1 make the loans on a relatively-smaller volume

2 than what the huge guys do, we won't have

3 community banks or community credit unions in the

4 future.

5 So, I think that what you're doing --

6 I know that's true, and I won't spend all the

7 time to prove it today.

8 And another thing I wanted to just say

9 to Ron is that, you know, there's all this

10 stereotype that credit unions and banks hate each

11 other. But I've got to say that the ICBA has

12 really been a voice of sanity in housing policy,

13 really quite remarkable. And sometimes I find

14 myself saying, oh, my God, I'm going to have to

15 join the ICBA.

16 (Laughter.)

17 You know? But it's true. I had a

18 conversation with a Senator who said, we're doing

19 housing reform. If it doesn't work for the ICBA

20 and the community bankers, it's not done. It's

21 not finished. They have that kind of influence

22 and clout, and I think it is because they

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1 represent the parts of America that don't often

2 get heard. And everyone else wants to use them. 

3 You know, the big banks want to sort of say,

4 well, we're just like they are. And some of the

5 credit unions, well, we're just like they are.

6 And I just want to thank Ron, in

7 particular, and his organization. I feel like

8 when there's just been crazy talk about what we

9 need to do in housing policy, it is just insane,

10 the ICBA doesn't always speak up when it doesn't

11 have to, but when it comes down to crunch time,

12 when it's needed, it has been my experience they

13 have always been there.

14 I just want to thank you. I think

15 this whole Committee thanks you for the role that

16 you and the ICBA have played. And thank you to

17 the FDIC, because I do think this is like maybe

18 -- this is overly dramatic -- but it may be what

19 saves democracies that really don't have -- I'm

20 serious. If we don't have homeownership, if we

21 don't have community banks, we're in a world of

22 trouble.

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1 And what you are focused on is really

2 the intersection of these two things that we have

3 to have for a country as wide and diverse as

4 Montana and North Carolina. It is what we have

5 to have, and you are really doing the Lord's

6 work. Thank you.

7 MR. BOSTON: I don't know what Martin

8 just said is profound, but I think some of that

9 language needs to be added to this promotion of

10 this product and service; that a lot of times,

11 because the FDIC, you do such great work, but on

12 the promotion side it is like, well, it's just

13 what we do, you know, kind of thing. And people

14 get it. But those are two very important points

15 that he made.

16 I may have forgotten this. Are really

17 loans a part of your portfolio?

18 MS. KERR: Yes, absolutely. It's very

19 important.

20 And we also show how they link. We

21 are very big that one of the best things about

22 this is showing community bankers how they can

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1 stack loans.

2 MR. BOSTON: Great.

3 MS. KERR: So, we put in the VA loans

4 that the Federal Home Loan Banks offer as grants

5 for veterans as well as the state housing finance

6 agencies often offer forgivable loans, and then,

7 VA loan guarantee programs.

8 MR. BOSTON: Okay. Thank you.

9 MS. KERR: Thank you.

10 (Applause.)

11 CHAIRMAN GRUENBERG: Thank you. Thank

12 you all very much.

13 I think that completes our agenda

14 today. It has been a long day. It has been a

15 very good day.

16 We will, in particular, review the

17 discussion from this morning and come back and

18 carry it forward the next time we get together.

19 And just FYI on the small business

20 side, we are undertaking a national survey of

21 small business lending to get a better insight

22 into the access to credit for small business. 

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1 Folks in our Division of Insurance and Research 

2 are working on that. So, it is part of the

3 agenda for the next meeting.

4 Thank you all very much.

5 (Whereupon, the above-entitled matter

6 went off the record at 3:33 p.m.)

7

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A

a.m 1:16 5:2 103:12,13

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absolutely 65:12 210:2

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abstract 139:3

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accelerate 75:22

accept 139:5

accepted 71:21

access-to-credit 86:11

accessibility 127:4

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accessing 4:8 106:20

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advancing 94:5

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argue 122:5

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Arizona 109:8 127:7

Arkansas 196:14

Armistead 52:20

ARMs 241:18

arrangement 74:12

art 31:18

article 162:19

articles 260:4,9

articulate 155:19

articulated 79:4

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ascertained 34:14

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Asian-Pacific 50:6

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152:4 159:9,11

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aspects 36:7

assess 180:5

assessing 107:3 121:6

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asset- 173:21

asset-building 175:9

assets 64:22 159:20

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assigns 122:16

assist 177:7

assistance 44:4 66:20

193:10 209:10 218:6

227:5 232:5 244:13

Assistant 41:12

associate 41:18 108:19

Association 233:10

assume 207:14

assuming 6:6 91:17

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assumptions 154:7

astonishing 65:18

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148:1

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attend 25:17 218:9

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attendance 25:20

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attended 257:1 258:14

attendee 176:1 260:6

attendees 177:11 258:2

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attracted 182:8

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audience 45:13 49:4

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authorities 161:6

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bankable 100:7

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190:3,6 223:19

244:20 245:22 263:19

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basic 19:4 54:16 79:18

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154:14 160:1 187:9

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began 195:3

beginning 64:12 148:5

148:7 159:7 165:4

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beliefs 158:15

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95:14 112:7 121:4

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172:7 201:19 248:1

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beyond 28:4 68:4

194:18 199:15

bidding 69:8,13

big 7:16 12:16 15:4,5,6

69:16 78:18 88:8 94:6

99:4 115:18,21 119:7

123:1 148:21 182:7

189:17 208:20 224:21

249:5 274:3 275:21

bigger 161:16 272:19

billion 88:20 89:19

271:21,22

bios 10:8 164:13

bit 5:14 10:18 58:10,14

58:20 59:16,18 62:10

62:13 70:20 82:8,10

111:20 126:7,14

128:8 138:17 148:3

172:9,9 189:12

209:20 234:22 242:13

Black 91:11 197:4

blame 113:14

blast 132:9

blend 231:11

blends 197:7

blessed 97:4

blind 198:14

block 108:3 116:19

blocks 116:13

bloodied 13:2

bloom 80:21

board 1:18 63:20 66:16

199:11,16,19

boards 198:19

Bob 57:5 61:8 62:2

69:18 70:15 71:6

93:11 96:12

Bob's 61:2

bodies 100:19

book 16:2 235:3 240:10

242:9 245:3 247:20

247:21

books 235:20 248:9

271:1 272:7,13

border 123:3,3

born 118:20

borrower 241:5 250:1

251:14

borrower-facing 263:8

borrowers 228:2 232:3

232:10 255:9 263:7

265:1

Boston 2:5,5,12 3:11

3:12 48:19 49:1,22

158:18 201:9,10,14

224:4 225:19,22

265:5,13,17,20

269:18 270:11,15

275:7 276:2,8

bother 42:10

bottom 120:11 165:5

244:1

bought 191:18

Boukerrou 18:3 175:20

boundary 122:19

153:22

bounds 210:1

box 214:18 215:1

Boys 182:20

brain 212:21

branch 17:7 52:17

53:18,19 74:6,13

103:16 104:3,13

108:5,16,17 109:1,10

109:16,19,21 110:11

110:13,20 111:2

112:9,14 113:3,5

114:2,4,6 115:8 120:9

120:10 121:10,12,13

122:2,4,7,16,18,21

123:13 125:3,7,15,16

126:3,4,5,9,10,13,17

126:21 127:4 129:13

131:21 132:22 133:3

136:1,19 137:16

138:16 141:22 150:1

151:9 152:3,18,19,22

153:2 155:14 159:2

160:20 161:3,20

163:16 164:20 165:2

166:16 181:1,15,19

182:6,12,18 190:21

190:21

branch-in- 121:22

branch-in-Tract 122:15

123:4 124:20 125:5

126:19

branches 3:15 6:18,21

7:2,4,9 51:17 53:5

103:16,19 104:12

105:4,6,10,14,16,18

105:21 106:2,3,5,5,6

106:12,20 107:3,14

107:15,16 108:10,19

109:5 114:1 115:6,7

117:7,16 120:4 121:2

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124:10 125:1,9 128:6

129:7 131:1,16

132:13,16,21 133:4,5

133:9,19 134:10,19

135:8,17 136:4,7

138:11 140:5 141:11

141:16 150:8 152:16

155:22 156:18 157:6

157:13 158:1 159:9

159:11,14 161:9,12

161:13,15 179:19

204:13 270:21

brand 58:4

brand-new 214:15

break 24:4,15 103:7

162:2

breathes 179:20

brief 103:21 186:16

241:4

briefing 65:2

briefly 155:4 210:8

bright 211:7

bring 20:2 56:8 63:19

68:19 78:6,15 81:1

98:13 169:12 181:9

197:10 207:13,17

208:12 210:3 214:14

215:16 221:13 222:4

250:17

bringing 26:15 54:11

81:18 112:7 138:20

214:6 215:1,10

brings 225:4 238:4

broad 65:20 140:12

150:9 208:10

broad-based 173:14

broadens 228:5

broader 61:18,22 62:8

67:15 143:3 229:3

broadly 11:3 129:6

255:22

broker 268:7

brought 11:12 64:21

202:12 209:13 221:2

234:8 241:21

Bruce 2:15 57:6 58:14

59:8 62:2 74:6 102:8

142:8 149:15 156:21

204:12

brutally 16:14

budget 269:22

budgets 39:5

buffet 195:14

build 26:13 33:16 52:13

69:11 95:21 118:8

165:7 174:9,22

176:12,20 228:7

254:5

builder 176:4

Builders 35:19 176:12

building 4:1 5:20 7:17

23:20 27:14 36:9 52:8

54:17 108:3 148:19

158:22 163:20 173:6

173:22 175:6 176:18

180:16 181:5,20

182:7 203:1 207:22

211:15

buildings 115:22

116:21

built 22:3 96:22 202:12

bullet 28:15 48:9

bunch 68:2 160:7

bureau 41:14 179:5

bureaus 19:10 177:5

bus 135:4,5,9 200:4

business 55:4,8 56:18

58:7 59:19 75:21 76:5

80:1,1 86:10,15 87:3

87:5 91:3 98:4 99:2

102:9 142:2 157:17

166:20 167:2,7 178:9

180:20 194:18 196:3

196:22 197:2 206:12

214:6 223:17 227:19

229:21 232:13 233:17

239:9 240:19 253:6,7

253:21 254:2,13,22

276:19,21,22

business' 87:10

businesses 72:8 86:17

98:10,18 165:10

193:10 196:3 198:7,7

214:15 253:8

button 46:19

buy 250:14 267:19

buyers 241:8 246:8

buying 132:1 253:3

C

C 2:22

C's 18:11,12

C-A-S 187:17

calculate 109:13

calculation 116:18

calculations 155:1

calibrate 127:9

California 191:22 192:1

192:17,20

call 3:2 5:5 38:21 110:6

122:1 150:12 165:2

185:1 187:14 204:19

218:5 221:12 231:8

251:5

called 153:15 168:1

212:21

calling 140:13 153:12

calls 221:5 222:18

candidate 178:10

capabilities 26:14

capability 7:14 66:10

67:15 97:1 165:7

212:7

capacities 215:8

capacity 169:14 176:12

176:20 208:1 229:2

capital 72:10 196:15

223:16

capture 128:7

card 19:3 20:18 90:2

care 93:9

career 193:18

careers 194:4

carefully 141:9

caring 200:15

Carolina 275:4

carrot 73:22

carry 6:6 147:21 276:18

carrying 205:10

CAS 187:14,16

case 59:19,19 61:21

75:21 76:5 79:21 80:1

81:15 107:20 126:16

130:15 184:22

cases 208:13

cash 18:12,21 22:14

cashers 30:9 141:12

cashing 27:6 28:4

catalog 235:21 248:10

catastrophically 92:13

categories 20:16

category 85:15 91:8

102:10 143:2

Cathedral 2:7

cats 248:21

cautioned 47:2

CDFI 195:3 223:12

CDFIs 98:13,15 195:20

195:20,21 196:1,2

198:5

celebrating 94:20

Census 108:2,6,16,19

109:2,12,13,16,17,18

110:4,7,10,12,15

112:10 113:1,1,4,14

113:20 114:12 115:9

115:14 116:10,15

117:12,19 118:1,4,8,9

118:15,17 121:9,17

122:3,10,16,20 123:7

124:22 125:2,14,15

126:22 128:21 129:2

132:17,19,20 133:7

133:16 134:9,14,17

135:20 145:3,6 146:7

154:3

Censuses 118:1

center 8:2 15:13 23:15

116:15,15 121:17

175:19 182:21,22

200:12 230:5,10

233:1,2 234:4,21

235:10,22 238:3

255:21 260:12 263:5

centered 18:5

centers 35:10 38:22

39:3 158:21 161:14

196:22 197:3 243:20

central 111:1 114:9,15

114:21

centralized 230:3

centroid 109:14,19

110:11 111:3 112:21

112:22 113:4,13

116:4,6,7,7,9,10

126:16

cents' 271:4

CEO 31:6 37:18 41:15

certain 61:19 100:20

102:5 216:6 272:4

certainly 156:5 192:16

248:17 254:1,11,14

255:6 269:16

certificate 25:22

certificates 244:14

certified 244:4

cetera 39:14 99:20

117:17 241:19

CFE 31:14

CFSI 15:14

Chair 159:22

Chairman 1:19 2:2 3:2

4:20 5:3 8:22 9:9 64:5

64:7,9 65:6 82:8

103:2,14 162:4,7

163:12 172:15 183:21

194:17 200:3 205:3

211:1 218:22 219:12

221:2 223:6 226:10

276:11

challenge 74:22 96:15

96:18 150:20,21

151:2 189:18,22

206:8 207:3 213:6

251:2

challenged 204:14

263:14

challenges 36:22 60:20

63:17 84:14 94:22

174:10 178:3 206:19

220:8 232:12 241:12

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challenging 229:13

253:18

chance 184:6 185:7,13

186:9 201:15 202:3

212:20 224:20

change 32:8 43:11 79:7

90:13 187:18 216:10

changed 99:12 142:12

155:8

changes 11:9 60:7,7,8

60:8 100:15,20 104:2

104:9 247:3

changing 67:3,7 86:19

103:16,20

channels 54:2 173:21

characteristics 148:8

148:18,20

characters 42:1,6

charge 24:16

charged 19:8 173:16

charts 33:8

Chase 14:9,10,12,19

89:18 90:12 160:14

Chatham 259:4

cheap 254:16,18

cheat 238:12

check 22:14 27:6 30:9

141:12 191:19

check-cashing 27:6

checking 25:12,18 89:3

89:20,22 182:16

253:2

checkmark 74:10

checks 18:21 28:5

chew 9:11

Chicago 110:8,21 111:1

111:6 114:18,22

115:2,15,16 118:20

120:19 122:9 124:18

124:19 125:13,21

128:18 130:20 132:10

132:12 134:21 145:1

154:1 164:10 172:12

174:1 180:2 213:6

219:22 256:7

Chief 17:6 163:14 227:1

child 224:19

child's 224:12

childcare 35:10 39:12

children 178:14 183:10

children's 67:12 83:15

224:9

choice 46:22 47:14

76:5 95:9,10,11,12,21

95:21,22 96:8,9,11

97:19 137:11 138:9

138:19,21 182:16

choices 42:4 139:2

150:9,9

choose 96:1 134:6

chunk 115:16

church 169:16 202:17

churches 34:2

circle 154:11,16 159:7

CISNEROS 2:5 82:7

cited 249:16

Citi 2:2 160:14

Citibank 89:21

cities 17:13 31:7 75:6

81:22 82:17 83:17

84:18 131:18 148:15

161:6 197:16

citizens 75:20 83:2

citizenship 50:12 75:6

city 2:5 33:3,16 34:9

83:2 84:5,11 109:7

114:18 115:2 116:13

119:16 120:18 124:18

124:19 125:13 127:6

130:3,8,9 132:11

147:13 148:7 180:4

181:18 182:7,10,20

182:22 186:20 188:16

189:4 224:11 233:21

258:4,7 259:7

city's 180:9

clarification 73:15,17

clarify 62:16

clarity 62:21

class 25:17 76:13 93:20

271:15

classes 191:5

classmates 207:7

classroom 116:21

clear 73:18 79:2,3

178:6 206:15 211:6

212:6

clearly 71:18 72:14

80:14 133:21 135:5

146:21 204:15 236:20

click 234:9 240:15,18

242:22 244:2,21

clicking 237:21

clicks 238:14 244:6

client 150:11

clients 18:14,16 27:16

177:7,22

climate 199:20

Clinton 4:7 164:12

194:13 209:21

close 50:22,22 126:6

193:4

closed 114:6 136:1

178:13

closely 23:17 82:18

167:19

closer 109:5

closest 109:1,10,19,21

110:4,11 113:5

closing 4:19 103:17

157:13 231:1

clouds 94:7

clout 273:22

coach 100:10

coaches 83:12

coaching 17:20 18:13

29:3 32:6 35:13 39:4

39:10 83:10 100:8

183:6

coalesces 216:10

coalition 50:5 167:14

167:22 168:14 169:13

170:9,13 171:14

195:13,17

Coalition's 173:6

coalitions 169:9 173:12

173:14 174:1,12

178:22 179:12 206:5

207:22

Coast 250:7

code 121:10 181:16

codes 142:2

coding 40:1 125:3

collaborate 174:7

177:17

collaborated 177:2

collaborating 220:6

collaboration 56:10

176:11

collaborations 4:1 7:13

172:18

collaborative 34:6

182:3

colleague 172:8 183:18

194:13

colleagues 73:12

155:18 164:8 184:15

210:9

collect 89:19

collections 178:6

collectively 207:1

college 2:12 23:8 83:16

191:6 207:7 224:20

Colleges 197:4

color 50:3,20 54:19

173:1 213:8

Columbia 2:8

columns 110:14

combination 56:14

228:22

combine 22:19 81:5

combined 32:21

come 29:16 30:15,16

53:19 68:6 98:9,11

103:6 113:10 131:21

142:7 147:7 168:15

186:2 198:16 203:17

216:15 217:10 220:4

221:6 223:15 246:3

250:13 253:1 267:9

276:17

ComE-IN 1:4 163:12

comes 73:8 79:12

154:9 218:13 250:1

250:18 274:11

comfortable 54:20

95:19

comics 46:5

coming 29:13 37:10

77:6 78:13 91:4 102:2

158:5,6 170:6 183:10

184:7 186:13 193:4

262:21

Command 232:22

comment 57:21 65:22

223:3 262:16 267:5

commenters 104:5

comments 49:20 62:3

66:11,14 70:21

119:15 153:6 159:13

163:7 185:7 222:11

257:2

Commerce 33:14

commercial 254:3

Commission 177:4

commitment 59:12

97:2 197:8 222:3

255:6

committed 182:2

246:21

committee 1:3,16 6:2

9:2,20 10:6 11:18

13:22 16:21 64:22

76:22 77:8 87:14

88:15 96:3,14 102:3

102:16 104:21 113:6

141:2 159:22 162:17

162:18 163:5,13,19

172:16 183:22 184:6

184:7,12 210:19

255:15 261:16 266:4

274:15

Committee's 9:6

committees 162:14,22

163:1

common 35:4 146:14

150:16 175:11

communicate 52:1

communicating 46:7

56:1 85:10 153:12

communication 36:9

56:2

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communications 85:17

180:8 189:4 233:5

communities 4:1 11:5,7

17:15 28:9 32:2 50:10

51:1,1,10 55:18 58:8

60:4 66:13,15,19 68:7

96:17 100:1 136:3,6

140:10,18,21 141:14

141:17 151:14,22

152:1 158:9 159:5

165:11 172:21 173:7

174:9 179:18 187:19

192:12 196:20 197:14

198:1 202:6 203:1

205:8 213:8,8 215:2

220:12 227:22 228:15

229:22 247:10 250:5

258:7,11

community- 221:13

community-based 36:5

78:16 80:15 176:21

259:6 271:19

commute 148:13

commuting 130:7

companies 87:7 102:2

company 2:14 3:13

40:2 97:4,16

comparable 70:6,11

compare 120:21 229:18

230:6

compares 232:6 238:20

compete 160:22

competition 12:21

competitive 233:14

competitively 160:21

complete 243:2

completely 29:19 89:17

completes 276:13

completion 25:22

complex 229:6 253:6

compliance 220:16

221:6 222:7 253:10

complicated 16:8 47:6

compliment 219:21

component 20:5 22:20

22:22 23:11 25:17

101:4

comprehensive 28:4

compressed 154:12

comprised 173:14

computer 40:1

computers 47:5

concentrated 176:13

concentrations 107:17

151:15,16 183:10

concept 71:11 137:20

138:1 195:3

conceptually 135:13

concern 26:22 120:3,7

concerned 71:14 93:22

136:8

concerns 27:3 28:11

30:1 104:13 144:2

conclude 37:5 103:3

concluded 229:16

conclusion 5:9 38:11

38:12

concrete 23:6

concretely 142:19

216:14

conditions 154:6

conducting 223:14

conference 2:18 55:3

194:22 260:16 262:18

conferences 156:16

confess 204:4,5

confidence 20:2 45:5

152:8

confident 142:18

confronted 9:18

confronting 79:11

175:2

congratulations 204:22

conjunction 231:6

232:2

connect 31:2 34:7

39:11

connected 14:20 28:21

82:21 84:11 212:6

Connecting 59:16

connection 32:18 58:12

60:16 67:16 151:20

197:18 207:16 209:11

209:12

connections 35:17 60:1

220:12

connects 219:19

cons 228:18 263:21

consensus 175:6

consider 6:9 30:2 36:7

88:22 105:19 185:8

211:7 238:12

considerable 104:1

176:7

consideration 50:18

considerations 139:12

179:5

considered 270:9

considering 72:11

consistent 62:4

consistently 77:9

consists 240:3

constructive 6:4

consulates 75:10,14

consultants 158:3

consumer 12:7,9,16

41:13 90:13 123:20

134:4 163:17 174:13

174:18 175:7,16

177:9 180:20 210:12

220:16,17 229:3

251:1 265:18

consumers 6:20 12:17

18:6 19:22 20:3 26:16

28:14 49:3 60:4 61:21

62:7 63:18 105:4,5,6

106:2 108:16 109:1

133:6 143:15 166:5

173:10 177:1,11,13

177:18 179:9 181:3

182:14 183:9 256:14

257:7 265:19

consumers' 107:7

contact 221:19 241:2

243:19 244:5

contacted 186:20

188:16

contained 177:6

contend 10:13

CONTENTS 3:1

context 42:5 43:10,16

96:9 97:1,18 104:15

107:19 108:6 120:20

138:6 140:4

contextual 43:9

contingency 13:1

continually 67:22

continue 6:21 101:8

162:1 167:4 171:16

195:1 199:22 203:5

237:21

continued 71:21

continues 165:14 219:1

Continuing 246:13

continuous 205:14

contribute 228:9

contribution 108:8

137:4 146:9

control 12:19 20:9

26:17 28:14,20 29:3

42:4 47:14 239:18

Controller 180:13

controllers 160:2

convene 216:6 227:3

convened 1:16 180:11

260:22

convener 260:6

conveners 223:11

convenience 14:4

18:13

convenient 42:18

114:13

convening 208:5 224:1

258:3

convenings 63:9

conversation 11:5

57:19 81:19 86:1,4

99:6 121:4 136:13

137:22 151:9 152:20

155:11 162:3,9

208:16 223:8 224:9

273:18

conversations 14:6

218:1 263:19

conveying 219:13

convince 220:4

cookie- 250:19

cookie-cutter 250:20

267:3 269:6

cool 116:11

cooperation 217:5

coordinate 197:10

coordinates 116:9

copies 236:2,6 249:11

249:13

copy 235:20

cordial 194:19

core 44:11 171:12

corner 24:7,7,8 197:12

corporate 196:7 211:11

corporation 1:1,17 2:10

37:19 177:20 178:9

180:14 185:21 218:5

correct 111:10,21

129:17

correcting 177:8

correspondent 239:15

252:13

corresponding 180:10

cosponsored 257:9

258:5

cosponsoring 258:22

cosponsors 257:17

cost 14:4 27:19 95:6,18

157:16

cost-efficient 55:6

costs 69:14 229:8

231:1

Council 50:2,4

counsel 267:12

counseling 35:22 36:21

37:2,10 174:20 176:3

199:4,5 231:2 241:19

244:2,4 268:15 269:9

269:19 270:5,9

counselor 268:3,12,14

268:21

counselor-facing 263:9

counselors 263:7

264:19 265:2 269:13

270:3

count 74:2,4,15 242:2

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country 37:21 39:1

44:16 72:4 75:11 83:8

83:18 90:16 98:14

100:1 102:14 112:8

114:9 121:21 130:19

140:9 146:7 164:9,21

173:13 175:17 201:17

202:3 203:15 210:22

216:20 223:9 228:12

243:7 245:6 261:1

263:18 275:3

counts 74:5 242:4

county 2:5 167:15

199:10 259:4 268:4

couple 29:5 49:6,17

50:10 68:12 132:9

140:2 195:1 222:9

246:19 251:18 253:4

coupled 55:15

course 28:6 29:15,16

59:10 83:14 86:4

162:2 187:4 202:19

268:15

cover 203:17,18 204:11

237:8

coverage 20:19

covered 142:11

covering 155:15

covers 199:10

coworkers 202:11

CRA 71:22 74:2 81:7

123:15,20 167:18,20

211:14 221:8 258:22

crazy 274:8

create 29:6 34:7 65:11

83:5 146:8 195:13,14

271:1

created 24:12 38:21

68:14 135:12 199:20

230:4

creates 51:5

creating 83:22 98:17

158:2

creation 192:4 193:9

creative 17:21

creators 193:22

credit 2:6 18:13 19:5,6

19:7,10 20:18 23:20

25:4,8,10 29:18 35:19

39:7,8 40:9 44:11

74:17 82:18 86:14,16

87:2,5,8,9 89:10 91:1

91:11,21 92:3 165:22

166:3,7,8,10,14

174:20 175:1,5,7

176:3,3,12,18 177:1,1

177:5,5,6,8,19 178:19

179:4,4 180:5 195:19

198:17 227:12,16

228:10,15 230:3

232:15 241:6 244:14

255:22 256:5,11,20

257:5,7,10 258:6,13

260:3,21 261:8

272:12 273:3,10

274:5 276:22

credit- 176:3

credit-builder 25:3

179:6 182:17

credits 58:16 198:22

231:2

creditworthiness 173:7

174:13 175:16

creditworthy 232:10

crisis 11:8

criteria 241:5,16 264:16

critical 43:2 79:19

86:22 128:13 271:18

critically 27:11

criticism 149:9

Criticizes 162:18

crossed 155:7

crosshatch 122:21

crunch 274:11

crux 112:6 253:22

cue 10:19

culture 18:7 250:9,11

cumulative 109:22

110:16 118:10

Currency 180:13

current 21:8 54:6 63:17

230:7

currently 94:1

curriculum 157:2

169:22 170:1 176:15

curriculums 44:3

curve 101:12

cushion 11:21 15:2,11

custodial 62:13

customer 20:9 40:22

41:7 45:17 46:16,17

48:12,18,19 49:2

50:19 51:22 53:15

56:1 62:18 69:10

242:11,14,18

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14:19 17:15 18:9

19:16 20:12,13 28:19

42:4,20 45:18 46:15

46:18 47:13 53:2,11

53:12,14 54:7 58:13

59:12 61:21 63:18

78:20 102:13 228:4

245:22 252:18,19

254:8 272:15,17

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D

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Dad 267:15

dah 267:16,16,16,16,17

daily 131:19 220:6

Dallas 164:3,5 167:15

167:22 168:1,12,12

170:16 171:15,19

214:21

Dallas-Fort 170:10

Daniel 41:11 42:6,21

45:12

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darker 88:2

data 12:18,19,19 13:12

13:14 14:11 15:4,19

60:14,17,18 75:17,18

79:22 81:16 85:9,11

116:11 117:12,12,12

120:5 130:17 133:22

134:16,20 135:11,12

135:15,18 136:9,10

136:15 138:18 142:2

142:4 145:5 146:3,6

206:22

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database 34:7

datasets 177:6

date 235:8 236:2

dating 36:11,16

David 3:9 23:21 30:18

175:21

Davis 41:14

day 5:8 7:22 8:12,18

10:13 31:1 56:22

64:12,15 70:19 94:22

96:7,13 97:5 149:22

150:21 151:1 158:10

185:14 205:2,18

237:8 252:15 256:8

276:14,15

days 56:16

DCP 172:16 219:14

220:19 233:3 260:9

261:9 270:21

deal 11:11 12:4 55:11

67:2 147:22 149:22

150:1,5 182:7 237:16

dealer/contractor

242:21

dealing 21:2 56:11,20

80:13 252:8

deals 199:1

Dearborn 256:8

death 254:18

debit 19:3 89:15 90:1

debt 16:11 92:12,15,17

92:18 94:2 178:18

241:21 242:2,5

debt-to-income 242:3

debts 39:6 92:19

decades 180:2

December 226:5

decent 142:3

decide 128:2,4

decision 150:6 229:20

declare 95:8

decline 83:1 106:7

141:19 161:15

declining 106:4 213:10

decreased 178:18

dedicated 10:10

dedication 210:16

deep 66:3 197:7 199:22

deeper 6:17 176:16

265:15

deeply 216:18

deepness 197:7

default 25:6 29:17

129:16 262:21

deficits 77:14,15,16

define 142:19

defines 137:13

definite 24:11

definitely 119:19 251:2

definitions 105:20

114:11

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36:20 37:8

Delaware's 32:4,7 35:9

delaying 15:9,10

delicate 263:11

delightful 43:12

delinquency 70:4

delinquent 48:2

deliver 61:19 96:10

delivered 170:9

delivery 17:14 173:21

239:11,12

demands 38:20

democracies 274:19

demographic 60:7

demonstrate 33:4

158:14

demonstrates 228:6

demonstration 67:13

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Denise 17:12

dense 140:6

densely 114:15

densely- 146:1

densely-populated

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densely-settled 109:4

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32:15 33:1 35:20

147:16 188:15,20

243:18 251:5 259:8

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depend 105:16,20

106:2

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depending 124:12

129:3 130:7 134:3,7

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deposit 1:1,17 19:1

88:13 159:1 160:2

165:19 179:17

Depositor 163:17

depository 166:4,21

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deposits 44:11 161:1

Deputy 184:21 217:21

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describe 36:12 108:12

described 18:15 32:1,4

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descriptions 257:13

desert 147:11,19

deserts 21:21 142:13

142:15,20 147:12

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designates 164:19

designation 192:3

designed 24:14 37:14

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182:13 227:21 230:6

256:12,18 258:12

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designing 11:3 42:5

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102:12

detail 16:5,22 117:4

149:6

detailed 232:19

details 249:1

determinant 27:20

determination 108:5,11

142:16

determine 118:11 143:5

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determined 132:20

160:5

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Detroit 141:1,1

develop 20:14 107:2

157:2 165:8

developed 8:2,7 24:2

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106:22 247:7

developers 264:20

developing 11:17 33:11

61:17 210:11 214:2

development 2:11 33:1

33:5 36:12 37:21

39:16 50:6 167:18,20

177:3,20 179:14

180:9,12,14,19,20

181:7,21 183:2,7

188:15,20 196:22

197:3 213:18 214:6

221:8 233:6 244:9

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devote 64:14 183:5

devoted 104:1

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dial 128:7 129:3,10

266:17,18

dialog 176:8

dialogs 216:12

Dialogue 2:17

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diaries 15:22

dictate 138:18

difference 45:9

differences 148:12

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15:17 25:2 31:20 58:2

61:19 63:13 68:7

80:19 97:18 99:16

100:9 109:8 111:8

112:12 113:21 127:7

127:8 130:7 131:3

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151:14 152:12,12

154:5 156:9 160:7

162:3 166:6 167:3

168:6,7,18 169:2

200:22 205:3,11

210:21 216:8 224:6

230:21 231:15 232:6

239:16 241:3 242:1

245:12 249:1 252:5

263:18 264:9 270:20

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digest 9:18

digested 219:15

digital 52:22 53:3,9

54:2,18 56:5,6,12,12

56:18 252:21

digitally 53:13,18

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dimensions 131:20

diploma 105:15 131:2

134:14 136:9

diplomas 38:17

direct 83:11 90:17

145:18 240:1,19

direction 102:18 162:1

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directly 81:20 92:5

151:17 222:14 240:6

240:21 244:19

Director 14:8 31:21

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184:21,22 189:9

217:21 219:22 220:15

220:19 222:6

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disabilities 46:10

198:11 241:10

Disability 199:8

disadvantages 149:1

disagree 162:8

disappearing 213:7,9

discharged 92:19

disclaimer 41:19

discovered 195:10

discuss 7:12 106:21

108:7 166:15 169:11

232:17 233:17 239:11

discussed 17:17 24:1

32:7 33:20 103:15

107:9 121:3 126:14

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19:13 31:17 37:22

58:3 61:2 64:6 99:9

104:19 137:13 161:17

248:2 264:4 276:17

discussions 22:5

142:13 155:20 174:17

181:18

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180:1

disseminate 8:7 136:22

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disseminating 137:5

dissemination 85:16

distance 51:13 108:11

108:18,21 109:9,13

109:18,20 110:1,4,5

110:18,20 111:5

113:3 114:2,4 118:8

118:11 126:15 127:2

127:14 128:22 129:12

137:20 138:10,18

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distinction 125:10

distinctly 114:10

distract 106:13

distress 45:19 140:13

140:15,16

distressed 140:9

distributed 236:5 246:2

249:13 260:10

distribution 108:9

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distrust 42:11

dive 176:16

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173:15 195:19 275:3

diversity 46:1 61:11,12

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division 32:15,22

114:22 163:17 220:16

220:17,17 277:1

doable 156:6 161:7

documentary 225:9

documented 105:3

documents 246:1

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dog-and-pony 223:14

doing 6:7 14:10 21:6

33:16 54:1,9 59:21,22

65:17 67:12 68:1,19

69:9 71:20,21 73:10

73:19 74:18 77:18

79:5 91:1,3 92:1

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158:4 163:1 166:16

168:19 169:22 170:12

170:21 171:7 186:21

187:5 189:21 202:19

205:21 207:18 208:15

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dollar 24:1,13

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doors 220:11

dormitories 116:19

dose 249:18

dot 122:13 123:1,1

dots 122:11

downer 89:17

download 235:13,15

downloaded 235:12

downloads 235:16

249:10

downtown 118:22

154:1 180:15 181:1

downturn 180:1

dozens 82:17

DR 2:6

dramatic 274:18

dramatically 111:18

122:7

draw 237:11 260:16

drawback 52:12

drawing 138:11

drawings 46:6

drawn 154:9

drive 12:22 130:12

144:9

driven 6:3

drives 152:20

drop 171:19,20

drove 53:18

dual 33:6

duplicate 187:10

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duty 247:7

dwelling 252:10

dynamic 155:6

dynamics 169:18

174:19 215:17

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117:18 118:2 120:10

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214:5,10 241:21

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101:8 125:19 137:1

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earned 134:13

Earning 84:3

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188:3 234:6 249:17

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echoes 194:22

echoing 85:3

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21:11 26:16 30:20

31:1,4,12 32:19,21

33:1,4,12,16,18,21

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63:15 107:7 152:3

165:3 172:19 173:6,8

173:12 175:12 179:15

180:1,14 184:18

188:15,20 192:5

217:20 227:7,8,13

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51:3 69:5 77:14 92:16

101:4,18 158:1,7

165:5 169:15,17,21

170:3 173:20 174:21

176:15 179:4 183:2,6

210:12

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171:17 173:8 181:22

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175:10 182:1 183:8

197:10 228:9 262:5

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184:13 195:18 198:5

200:12 208:22 252:9

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either 15:9 25:10 92:5

144:6

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131:12,13

electronically- 263:13

element 227:19

elements 59:15 163:22

elevate 218:18

eleven 193:10,13

eligible 266:15,16,17

266:18

eliminated 91:18 133:2

elliptical 154:10,17

Eloy 4:3 164:2 181:11

183:16

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Embassy 75:1,9

embed 22:16

embedded 75:12 76:2

embrace 28:16

embraced 264:10

emerge 80:10

emerged 175:1

emerging 165:9 167:1

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172:8 183:18 184:1

186:1 190:10 217:9

emotional 152:16

emotionally 16:17

emphasis 11:20 218:21

emphasize 237:10

emphasized 14:13

emphasizing 33:22

employed 21:20 172:20

employees 35:15 36:22

37:1 97:15 102:9

183:5

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employment 11:10

23:14 30:8 40:10

86:21

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31:7,22 32:5,15,20

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enable 233:16

encompasses 222:6

encounter 109:5,9

encourage 68:16 94:15

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193:9 227:14 239:22

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encouraged 213:16

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encouraging 68:1,10

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Endowment 2:4

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energy 183:5 197:10

enforcement 246:12

engage 26:13 51:7

151:17 202:5 211:16

211:17 212:10 214:4

engaged 53:13,18 87:9

143:9 183:13 196:8

211:5,22 218:3

267:13

engagement 52:22 53:3

53:9 56:5,6 85:4,18

180:11 211:15

engagements 82:11

83:11

engages 86:8 256:3

engaging 56:18 87:13

engines 267:2

English 46:3 50:14

133:21

enhance 68:19

enjoyed 67:21

enlisted 191:4

enormous 14:22 102:1

ensure 165:17

ensuring 75:15

enter 271:14

entered 181:18

entering 66:16,17

223:12

Enterprise 2:10

enterprises 230:15

240:9

entire 19:18 55:2 115:4

120:13 171:20 194:22

222:17,21 223:7

235:15,17 238:16

entitled 39:12

entrepreneurialism

98:4

entrepreneurs 66:9

167:1 214:15

entrepreneurship

44:13

enumerated 167:17

environment 17:2

63:17

episodically 211:6

equity 207:8 217:3

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113:6 127:21 128:2

128:12 132:2 137:6

142:6,15 143:17,20

144:11,21 145:10

146:19 149:11,14

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escalator 43:14,15

especially 81:3 105:5

182:11 244:20 250:4

espoused 156:7

essential 136:2 270:10

essentially 188:8 232:4

established 42:19

135:5 171:12 182:19

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evaluates 152:2

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226:21,22 248:13

255:12 261:14 264:19

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250:19 257:2 258:8

258:15 259:11 271:15

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everybody 5:4 8:13

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68:18 76:20 80:13,19

81:21 147:6 168:17

226:11,13 251:9

252:21 255:17

everyday 43:7 55:12

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evolve 165:14

EVP 4:14

exactly 78:2 108:7

114:3 115:8 116:12

125:3,16 128:10

132:3,4,22 179:12

190:4 240:12 242:12

270:14

exam 221:16

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examine 253:9

examiners 123:15,20

217:4 218:8 220:10

220:20 221:11

examining 223:9

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37:8 48:1 56:15 75:18

114:19 121:22 124:17

124:18 128:19 131:4

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192:1 208:14 217:4

223:12 239:2 240:2

240:10 242:20 246:3

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135:14 186:5,8 195:1

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219:13,14 220:9

excess 260:17

exchange 174:17

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exciting 210:18 262:11

excluded 16:19 94:1

exclusion 91:11 140:8

exclusively 238:11

excuse 147:17

Excusing 75:3

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executive 32:14 40:17

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exemplify 172:19

exercise 43:15 141:1

exhibitor 260:7,15

exist 79:3 95:1 106:14

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expand 29:7 32:3 229:2

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expansion 87:5

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216:13 245:20

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expense 11:12,22

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233:11 250:12 274:12

experienced 179:22

experiences 172:18

explained 13:20

explanation 104:16

explicit 66:2 117:1

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explicitly 116:2

explore 177:12 181:19

262:3

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exponentially 210:4

expose 12:11 259:16

expressed 258:3

expression 155:22

extensions 132:5

extensive 14:18

extent 13:15 16:5 79:21

external 75:13 233:5

externally 150:3

extra 16:12,12 35:11

extracted 89:3

extraordinarily 16:8

extraordinary 216:19

extremely 13:11 23:12

83:3 140:14 144:9

F

fabric 184:18 192:11

fabulous 76:18 206:5

235:22

face 21:3,3 55:12

125:17 135:22 232:11

252:4,14

faced 101:10 178:3

facilitate 101:16 174:5

231:3,21

facilitates 43:22

facilities 158:20 168:7

facing 11:11 17:18

206:8 263:6

fact 52:8,10 96:10

97:14 118:6 139:18

143:9,11 205:2 221:4

249:10

Fact-based 152:16

factions 168:5,18

factor 224:21

factors 31:19 87:12

150:19 152:6

facts 86:3 88:17

factsheets 238:7

fail 196:11

fair 6:3

fairly 26:3 28:17 190:6

faith 197:6

faith-based 221:14

fall 88:22 113:21 143:1

188:13 262:17

fallen 170:15,17

falls 102:9

familiar 115:3 187:8

240:11

familiarity 120:2

families 12:5,11,12

13:7 15:16 16:1,6,9

17:1 43:3 44:18 51:15

90:15 91:12 92:7

93:18 105:12 192:11

254:5 271:7,14

family 33:17 51:4 183:1

183:2 239:8 250:18

250:18 272:20

family-owned 37:8

Fannie 230:15 238:18

242:1 247:7,13

252:12 271:9

Fannie/Freddie 272:11

far 23:18 26:4 28:17

66:8 94:19 119:2,6

120:8 129:22 213:1

Fargo 89:18

farm 252:10

farther 8:8

farthest 109:20 110:13

fascinating 54:8

fast 237:7

Faster 42:13

fastest 193:22

fastest-growing 62:5

favorite 234:10,13,15

236:18,22 239:21

242:8,9

favorites 234:16

FDA 147:16

FDIC 2:2 3:2,8,9,10,14

3:17,20 4:3,5,6,7,12

4:17,20 6:15,16 7:11

8:2 13:10 31:15 33:14

41:19 65:1 67:4 75:18

77:18 82:1,19 83:5

84:8 85:7,16 86:8

90:16 98:5 99:17

102:15 121:3 162:14

162:18 165:20 171:15

172:18 173:5,11

180:11 184:14,17

198:3 201:20,22

202:15 205:4,17

209:18 210:11 214:12

216:5 217:2,19

219:20 220:22 222:12

222:17,19 223:9,18

228:8,11 230:4 233:4

233:5 236:11,15

238:9 248:19 253:8

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FDIC's 8:1 13:12 42:7

44:8 87:13 170:10

173:8 176:14 227:2,6

234:21 235:21 248:10

256:1

FDIC- 260:10

FDIC-insured 86:9 87:1

FDIC-regulated 182:5

feasibility 152:3 181:19

feat 249:3

feature 234:10 244:1

245:19 266:14

featured 31:8 257:10

features 43:9 62:9

234:7 262:20

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246:8,18,20,21,22

247:17 248:8 249:18

259:2

informative 64:16

informed 150:13

203:20 211:22 229:19

initial 24:21 154:6,6

216:12

initially 29:12

initiate 230:8

initiative 175:9 178:9

initiatives 21:15 37:19

259:9,22

innovation 15:14 165:6

175:20 206:14

innovative 17:17 19:12

29:1

input 27:15

insane 274:9

inside 54:7,14 97:2,7

insight 6:17 276:21

insights 20:7 43:5,6,7

45:17 65:5 66:7

228:14

instance 129:9 136:5

136:10 154:1

instant 19:6 225:3

instill 187:16

Institute 2:16,22 14:9

199:8 270:12,17

institution 18:21 51:11

55:5 58:5,19 59:13

96:9,14,17 99:8

189:20 206:21 251:3

261:4 272:15

institution's 228:6

institutions 12:20

17:16 23:16 32:12

34:2 49:5,7 51:20

66:17,18 68:3 69:15

84:16 86:9 87:1 90:10

97:2 99:11 115:22

166:4,12,22 167:20

169:1 170:22 171:5

173:15 174:6 175:4

176:22 180:5,18

181:17 189:15 190:1

190:3 193:11 214:22

217:7 220:8 227:14

UNOFFICIAL/UNREVIEWED
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231:4 271:19

insurance 1:1,17 20:19

240:17 277:1

insured 44:11 69:15

88:13 165:18 166:4

173:19 179:16 227:14

231:4

integral 261:8

integrated 114:17

integration 75:8 76:1

intended 20:1

intense 39:18

intensity 150:12,12

158:15

intensively 197:17

intent 196:9

intention 46:21

intentional 181:4

intentions 43:8

Inter-American 2:16

interact 105:7

interacting 220:6

interaction 140:20

141:10 142:5 217:1

interagency 257:9

258:5,22

interagency- 256:10

interconnectivity 33:10

interest 66:3 80:1 93:6

95:7,18 104:7 134:8

135:16 136:16 139:8

139:11 180:7 216:13

228:6 249:9 272:8

interested 61:2 67:10

107:12 129:11 132:14

134:6 145:1 187:4

254:9 256:22

interesting 6:15 7:7

16:19,19 19:12 24:17

52:18,21 58:1 59:6

60:12,15 63:7 70:19

139:20 145:4 147:18

149:2,4 155:5 247:9

250:16 267:4

interestingly 155:20

internally 55:8 150:2

International 2:9

internship 215:2

interoperability 61:3

intersecting 107:17

134:18

intersection 133:9,16

134:12 275:2

intersections 61:5

intersects 179:15

interventions 78:9,10

interviewed 263:18

intrigued 143:14

introduce 232:18

introduced 184:2

introducing 72:17

introduction 103:22

120:17 238:19

intrusive 45:21

intuition 129:14

intuitive 153:11,18

249:17

intuitively 145:22

invented 11:16

inventory 169:21

170:21 176:17 215:9

invest 72:7 85:16

211:18,18 254:21

invested 55:8 85:10

investing 93:12

investment 71:18,18

72:9,14 76:6 85:20

158:21 159:14 180:6

180:9 231:19

investments 33:5 58:15

72:21

investors 33:4 159:2

invitation 207:5

invite 223:15

invited 221:22

inviting 248:16

involved 23:10 99:21

185:1 186:10 193:20

196:9 199:5,6,17,18

209:19 213:5 229:11

involvement 172:13

involves 23:14 197:20

involving 17:19 34:6

issue 50:17 55:20 77:19

104:6 162:9,10 170:8

174:13 175:11 208:20

issued 207:2

issues 24:21 30:1,1

43:7 55:12 62:16 73:9

73:11 76:21 86:11

99:13 101:10 107:21

150:5 175:1 216:6

233:6 265:21 269:21

J

J 1:19 2:2,13 3:13 4:20

Jackie 33:14

Jamie 52:19

Janet 41:16,20 43:21

185:4 206:4

Janie 2:3 40:16 98:1

158:19 167:8 197:12

January 178:1

Joaquin 192:18

job 13:5 16:12,12 37:2

38:3,5 39:16,22 40:2

41:22 70:18 87:7

140:1 185:21 186:2

190:17,20 192:4

193:9,22 205:22

212:5 215:5 217:10

219:3 220:1 235:22

271:2

jobs 38:14 39:19 49:13

98:7,7,7,9,18 185:21

187:2 193:18 194:5,5

213:7,9 250:14

JOHN 2:18,22

Johnson 23:21 175:21

join 216:17 273:15

joint 50:3

Jon 8:19

Jonathan 3:5 10:20

15:15,20 17:9 30:21

30:22 31:6,11 57:4,10

79:13 97:21 102:16

103:8

Jones 37:17 176:1

Joplin 111:9,11

Jose 2:5 67:11 72:15

82:5 85:3 224:17

JPMorgan 14:8,10,12

14:19

Jr 2:13 3:13

juggle 16:11,11

juggling 16:5

jump 136:8

jumped 30:6

jumping 139:18

jumps 120:2

June 178:13 180:2

juniors 193:17

K

K-to-12 32:10

Kansas 33:16 34:9

233:21 258:4,7

Kardashian-worthy

237:2

Katie 43:5

Katy 41:14

KC 33:22

KDC 72:15 73:4,16

keep 8:17 16:10 76:20

161:15 248:3 253:16

253:20

keeping 12:8 77:3

81:20 88:7 254:9

270:5

Keith 3:17 13:10,20

105:1 157:11

Keith's 13:14

Kelvin 2:5 3:11 48:19

48:21 55:1

Kerr 4:12 166:17

232:22 234:2 236:20

263:3,13 264:21

265:7,16,19 266:1

270:6,14,16 275:18

276:3,9

key 8:3 14:2 19:4 20:5

20:20 26:7,8 34:13,17

36:9 38:14 40:7,11,12

45:17 46:2 58:9 59:15

61:9 64:3,17,18 88:17

177:2 227:6 267:11

KeyBank 2:15 18:4,15

18:20,22 23:2 26:19

27:17 28:1 58:17

175:20

KeyBank's 19:15

keynote 175:22 206:10

kicked 31:11

kid 190:16

kids 191:13 267:14

Kindergarten 83:16

kinds 151:14 159:20

221:8 224:2 250:16

knew 200:8

knob 127:22

knowing 197:18

knowledge 31:2 45:1,5

46:12 166:8 174:17

175:7 177:4 179:4

212:7 257:6

knowledgeable 269:14

known 58:8 196:15

271:18

knows 40:18

Kris 104:10 111:4

157:12

Kristopher 3:20

L

L 2:20 134:20 135:3,6

La 50:2,4

lack 15:11 140:11

224:16

lacking 106:13 143:4

ladder 165:3,4

ladies 163:13

lake 119:7,7,8,22

120:11,14

land 115:16

language 46:4 52:2

150:16 275:9

large 79:2 90:10 116:16

118:15 119:17 122:13

131:1 146:12 160:2

largely 91:17 200:7

larger 61:6 77:21 79:22

127:18,19 170:4

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largest 72:3 90:2

155:13

lasting 45:4

lastly 12:14 36:13

latest 245:2

Latino 91:12

Laughter 8:16 10:12,14

36:18 37:6 40:19

41:21 49:11,14 57:9

57:13 71:2,8,10 75:4

76:14,17 80:8 86:5

87:21 88:3 90:8 93:8

94:11,14,17,21 97:11

103:1 111:13 119:1

120:12 123:14,22

124:6,16 139:22

141:7 149:19 153:1

155:9 157:9 158:16

162:6,20 181:8,14

184:9 185:18 186:3,7

196:17 200:10 201:8

201:13 203:9 204:6

206:18 207:9 213:3

216:16 217:11,13

219:4,7 225:21 226:6

226:9,16 234:11

235:18 236:17,19

237:4 243:15 249:7

250:10 251:7 255:18

258:20 262:12 263:15

266:7,21 267:10,21

268:19 273:16

launch 84:1

launched 82:16 195:4

235:3,5

Laura 3:10 41:1 48:15

136:22

law 2:3,12 3:7 246:12

262:17,19

Lawrence 3:10 41:1,3

layer 145:16

layering 231:8

laying 10:18

LDT 110:6 113:16

114:21 115:6,8

120:17 125:20 127:9

128:17,18 129:1

132:13 135:11,12

144:3,13,15

LDTs 145:2 146:8

lead 22:22 26:17 82:1

leader 65:14 71:12,16

72:12

leaders 64:21 174:7

leadership 168:4

172:16 174:5 201:1

leading 66:9

leads 173:11

League 17:12 50:5

lean 249:22

learn 22:1 171:18

193:17 203:14 221:14

223:16 264:13 268:15

learned 16:20 31:18

34:13 49:12,19 54:5

leave 29:16 49:4 63:12

87:22 159:18 185:22

187:21

led 57:2 176:8 195:5

256:10

left 39:13 93:15 94:7

127:19 157:19,20

238:10 240:9

legal 74:13

legislation 101:17

legitimacy 224:3

Leigh 41:15 44:14

lend 244:20

lender 240:22 245:1

269:3,4

lenders 24:6 141:12

195:8 263:11 265:3

lending 4:8 8:1 24:2,4

28:10 30:17 227:4,18

228:4,17 229:11,22

230:3,5,9,11 231:3

233:11,15 234:4,20

235:9 238:2,4 245:10

245:11 255:20 256:5

257:1,12 258:10

260:12 261:8,21

276:21

Lentz 32:13 175:18

Lessie 4:10 163:13

185:4 226:22 243:7

255:15

lesson 36:2 37:15

lessons 31:18 34:13

let's 88:16 97:13 144:3

240:8,10,12 244:8

245:7

letter 48:1 223:18

letting 57:11

level 16:13,22 72:6

88:13 93:16 99:1

101:14 133:14 137:20

145:6 146:7 156:19

174:11 262:8

levels 51:3

leverage 195:16 212:7

213:20 262:8

leveraged 199:2

leverages 32:9

leveraging 198:22

Levere 2:10 57:6 64:20

113:12 156:13,15

157:10 206:2 209:2,5

209:8,15 210:6

225:16,20 236:18

270:12

Libby 21:9 30:7 175:21

Liberty 2:13 3:13

lien 244:11

life 55:13 92:22 182:20

182:22 223:8 254:10

lift 262:14

LiftFund 2:3 223:13,17

light 6:10 68:13 212:2,3

lighter 212:2

lights 200:5

limit 234:16

limitations 144:19

limited 46:3 50:14

106:11,16 107:5,20

108:1 135:21 183:12

limits 19:7 241:6,17,18

Lindsay 50:1

line 19:5,6 110:19

195:15 237:11

lines 11:17 19:9 139:13

232:15 240:1 266:3

272:1,16

lining 79:9

link 179:9 206:5 240:22

275:20

links 238:12 240:2

243:6 245:4 248:7

LISC 37:18 176:1 177:3

LISC's 38:12

list 168:21 245:8,9

269:13,15

Listen 42:3

listened 96:12

listening 62:12 95:3

195:6 212:15 214:20

218:7 221:12 222:10

lists 244:3

literacy 17:20 22:15

25:17,21 28:6 38:18

38:18,19 51:7 100:11

101:4,9 159:14 189:6

literally 90:15 91:22

123:18 125:12 126:1

little 5:13 10:18 58:10

58:14,20 59:16,18

62:10,13 73:10 82:8

82:10 126:7,14 128:8

138:17 139:4 143:2

148:2 154:22 156:7

164:6 172:9,9 189:12

200:21 208:1 209:20

216:22 224:6,15

225:1 234:21 242:9

242:13 265:14 266:16

livable 194:5

live 8:14 21:20 109:1

117:15 124:1 126:2,8

185:14 192:13

lives 45:6,9 67:7 110:3

116:22 125:14,15

132:12 178:21 187:20

188:2

living 119:6 133:6

144:2 191:11

Liz 185:4 206:4

LMI 102:12 132:20

139:8 165:9 179:18

194:7 228:11 256:13

load 212:2,2

loan 20:18 24:1,13,16

24:22 25:2,11,14,20

29:12,19 48:2,3,4

70:11 93:6 173:19

199:3 200:13 229:1

231:14,15 236:13

237:15 240:16 241:16

241:17 243:9 245:3,5

245:6,9 247:20

250:20 251:1 252:12

257:14,17,19 261:6

266:13,14 270:8

271:9,10 276:4,7

loan-to-value 241:17

loans 25:8,9,14 26:5

182:17,17 195:21,22

198:6,21 228:19,19

250:20 253:3,15

254:2,2,3,4,10 255:9

256:17 269:6 271:6

272:9,12 273:1

275:17 276:1,3,6

lobby 198:16

local 7:17,18,20 12:3

23:14 31:9 37:18

40:13 52:9 81:8,18

82:12,18 83:13,21

85:4 90:6 101:14,15

101:16 108:6,9

134:16 138:12 146:10

146:13 150:14 173:15

174:11 176:13,16

177:9,14 178:2 180:4

180:18 182:10 183:13

208:9 252:2 253:1

256:9 261:5 262:8

268:3 269:12

locally-defined 108:10

locally-determined

110:5 117:12

locate 159:20 160:3

located 108:17 119:12

119:20 120:8 121:10

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122:17,18 138:12

182:21 232:22

location 50:19 51:13

113:2 141:10,22

142:4 148:5 150:1

152:4 161:4

locations 53:5 112:17

122:11 138:3 161:6

London 204:8

long 62:20 147:7

213:15 254:11 276:14

long-term 11:9 54:17

58:15 59:9,11 68:6

203:2 254:7

longer 146:13 152:18

longer-range 93:14

longer-term 26:11

longest 109:20

look 50:8,21 51:11

71:13,13 72:2,7,8

78:11,12 80:17 81:10

84:20 90:4 94:8 98:5

98:15 99:3,4 104:18

108:20 109:11 112:2

113:18 114:18 116:12

117:11 118:13 119:17

120:4 122:2 123:16

127:10 128:15 129:8

131:4,13 133:18

134:7,16 137:2

139:15 141:9 142:8

142:13 147:11 149:3

149:6 150:10,10,11

165:22 195:17 196:2

196:21 197:12,13

198:16 200:2 215:17

221:6 225:1 237:19

240:10,13,20 242:17

265:4

looked 50:8 51:16,18

73:21 125:19 126:18

128:19 135:18 138:2

149:5 155:14 160:18

240:2

looking 11:2,17 40:16

52:4 68:11 82:13

83:19 85:15 90:7

109:22 111:22 112:8

114:13 117:6 122:10

124:8,12,13,14 129:4

130:16,19,20 132:19

133:8,13,15,16

134:11 135:14 136:13

140:14 145:13,13

146:12 147:15 148:8

169:15 170:20 232:14

244:20 250:2 264:16

265:8 267:15

looks 120:18,18 124:19

loosely 74:3

Lord's 275:5

Los 186:10,16,20,21

188:16,20 189:4

lose 169:8 270:3

losing 40:21 107:16

loss 38:3 71:12,15,16

71:21 72:12 106:5

lost 41:2 168:3

lot 5:11,18,19,20 16:20

19:21 21:3,22 22:12

23:15 26:20 28:3

29:13 49:18,19 52:7

52:10,11 60:16 61:13

67:14 68:15 69:5

84:17 85:8 88:11 90:7

92:8,16 93:15 94:6

97:5 99:9 100:3,15

120:14 129:16 131:20

140:6 146:1 154:2

157:15 158:20 167:2

168:5 187:12 189:2

191:14 196:12,22

201:16 202:18 203:15

204:13 214:17 222:18

222:18 249:22 250:4

251:3,4,10,11,12

253:5,12,13 269:5

275:10

lots 12:14 58:1 60:13

60:14 63:16 117:11

135:18 207:17

Louisiana 196:14

197:16 208:14

Louisville 32:16,21

33:7 35:17 175:18

love 46:20 66:5 85:14

142:17 151:8,17

186:1 208:9,15 209:6

214:3 254:17 263:7

loves 249:15

low 51:2 102:7 106:11

118:14,14,18 121:11

129:7,9 130:22

133:18 136:6 137:16

137:20 138:1 151:16

152:1 177:19

low- 11:4 12:5 13:6

15:16 16:6 21:11

27:18 28:2 44:21 45:9

47:19 50:9 51:9,15

52:3 62:6 74:7 77:9

79:9 94:3 97:8,16

132:18 133:6 145:13

145:15 159:4 173:10

179:21 181:2 205:16

227:16 228:1 246:7

low-dollar 83:22

low-income 11:21

12:11 23:18 43:2

83:11 84:4 93:17

124:10 148:14 183:8

189:5

low-to-moderate 46:9

Lowe 219:22

lower 53:15 106:18

114:20 117:6 127:12

132:12 134:9,18

135:7 136:3,14

141:16 199:2

lower-access 135:1

lower-income 6:22 92:7

105:5 136:5

lower-level 37:11

lowest 128:6

Loya-Torres 33:14

lunch 7:11 75:1

luncheon 175:22 222:2

lunchtime 10:3 37:22

M

ma'am 210:7

Mac 230:16 233:12

238:18 247:8 252:13

271:9

Mae 230:15 238:18

247:8 252:12 271:9

mailed 40:15

main 45:13 108:8

Maine 150:22

mainstream 22:2 26:16

33:3 38:15 63:19

67:16 176:5

maintaining 22:12 59:1

major 66:10 165:14

207:20 270:1

majority 131:18 134:22

135:7 169:22 258:15

makeup 243:8

making 59:19 85:11

91:6 94:19 96:8,8,10

97:19 138:9,19

149:17 150:9 154:15

169:3 170:17 212:2

219:15 247:3 254:1,4

254:10 255:8 271:6

male 183:12

man 190:15 207:14

manage 22:1 37:12

managed 143:11

management 16:9

185:3 218:22 219:1

219:14 220:20

Manager 164:3,10,11

164:12 172:11 184:3

184:3 190:21,22

194:13 233:21

managers 37:11 44:6

184:22 201:17 208:22

236:5

Managing 41:15

mandatory 25:20

maneuver 200:6

Manhattan 112:12,13

115:18 130:3

mantra 98:8

manual 47:10

MANUEL 2:16

manufactured 247:10

map 114:20 117:10

118:21 119:3,17

122:8,14 124:22

125:19 128:16,18

145:2 154:12,16

164:19 204:9 245:5

mapping 140:22 154:22

161:9

maps 130:21 145:2

160:4,5,18

Margaret 21:9 175:21

Margaret's 21:14

margin 95:11

Marines 191:4,5,6

Mark 3:14 57:2 67:8

185:3 219:5 220:18

220:18,21

marked 83:1

market 58:17 91:12

150:10 174:18 228:20

marketing 56:12,13

marketplace 12:13,21

60:20

markets 61:19 173:13

203:16 204:1,13,14

205:3

Martin 1:19 2:2,6 4:20

82:6 87:17 94:18

137:7 139:17 149:15

153:7 201:19 203:6

224:5 275:7

Marty 3:2

Mary 31:21 33:8

Maryland 2:20 268:4

massive 207:22

match 15:2 84:4

matched 171:6 178:10

material 9:15 265:14

materials 10:9 210:12

266:12

math 153:14

matrix 238:20

matter 50:20 97:15

103:11 107:22 139:20

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161:2 163:8 226:18

252:5 277:5

matters 42:5 43:17

50:13 124:14

Maurice 37:17 39:18

175:22

Mayor 224:11

mayors 75:6,7,21

224:10

McCOY 2:12 111:4,8,16

111:19 143:7,19,22

144:12,22 145:7

210:8 262:10 263:4

264:22

McDONALD 2:13 3:13

49:10,21 55:1 98:21

204:21 217:8 222:8

McDonald's 24:10

mean 6:9 11:10 46:3

58:21 70:16 71:3,4,11

72:2 73:10,16 74:5

88:4 90:10 98:8

123:17 131:19 146:4

148:22 151:15 159:3

200:17 215:7 249:2

250:18 251:9 267:18

meaning 168:11

meaningful 20:22 138:5

144:17 146:9 200:1

means 28:13 105:6

108:7,12 112:11

127:7,12 135:13

138:6 139:19 143:17

153:14 161:13,16

meant 86:18

measure 6:17 8:9 89:5

113:17 121:18,20

125:8 130:7 140:3

141:15 147:8 214:1

measurement 128:3,4

143:5 145:18

measures 140:17

213:14

media 2:5 3:12 56:19

104:4

median 137:18,21

mediated 42:3 48:13

medical 15:5,7,10,10

39:20,22 55:20

medium 47:11,12

meet 17:2 18:6 22:8

27:3 46:13 75:1 175:4

186:22 190:5 227:21

meeting 1:8 5:5 8:14

41:10 71:1 103:6

162:17 169:10 171:10

190:2 203:22 219:5

219:17 222:5 260:6

277:3

meetings 76:4 123:11

162:14 180:3 193:12

196:5 220:22 221:22

226:5 229:16 236:8

260:22

members 9:2 10:6 51:4

51:10 66:12 86:2

104:21 145:15 158:2

163:12 171:13 172:15

176:9 183:21 225:12

233:16 266:19

membership 168:21

169:6,9 170:19

171:12 206:12

Memphis 164:13

194:14 195:2 197:15

212:22 213:2

Men 182:19

mention 29:4 89:18

123:11 263:17

mentioned 9:9 18:11

25:9 30:22 64:20

102:8

mentioning 30:11 82:9

mentoring 182:20

183:6

message 205:9,15

219:13 222:4 269:12

met 180:6 187:1 212:15

228:11 249:4

metaphor 36:10,16

metaphorically 13:2

method 113:7 117:3

125:5 132:5 137:15

142:18

methodologies 147:18

methodology 15:17

99:12 116:2 119:22

122:15 143:10 147:14

148:10,22 156:2,9

metric 112:15 131:3

metro 32:16 110:3

115:4 117:8 146:18

148:7 170:11

metropolitan 105:19

108:20,21 109:11

110:8,9 111:2,22

112:3 113:19 114:8

114:10,14,22 115:1

146:2 168:11 171:15

Mexican 75:1,9

Michael 2:3 3:7 10:15

17:4 63:2 82:5 85:1

98:3 138:8 139:14

142:10 143:9 147:1

222:11

Michigan 2:3 3:7 119:8

173:2 174:4 243:14

243:18,21 244:5,9,14

256:9

micro 87:2

micro- 88:6

microbusiness 195:22

microbusinesses

86:17,21

microphone 41:4

172:10 183:18 194:12

micropolitan 112:3

middle 93:20 109:15

116:9 122:14 271:14

middle-class 79:13

middle-income 12:12

13:7 14:17

Midwest 202:11 204:2

Mike 94:16

mile 126:16,18 128:19

135:8

miles 110:22 111:3,5,15

112:5,10,11 121:20

126:16 127:7 128:17

128:21 144:4 146:17

150:18

millennials 267:7

Miller 3:5 8:21 17:3

30:4 37:7 48:15 56:21

64:1,19 67:19 69:18

70:8,13 76:9 82:4

84:22 87:16 94:15

98:1,19 102:21 103:9

million 14:11 26:6

88:21 130:4 271:22

millions 72:16 90:15

196:6 198:8

millstone 94:3

Milwaukee 173:2 174:2

176:19 177:3 213:5

mind 8:17 20:3 23:8

79:7 106:10

mindset 97:19

mine 73:13 95:9 98:22

minimum 19:2 194:4

ministers 202:8

minorities 97:13,14

minority 145:15 198:7

minority-owned 86:16

Mintz 31:6,11

minus 153:10

minute 41:4

minutes 103:10 184:11

237:8

missed 76:12

mission 59:19 73:4

79:18 95:10 253:20

261:9

Mississippi 23:22 24:4

28:9 196:14,16 199:9

199:11

Missouri 111:9,11

258:8

mistake 92:20

mistaken 269:18

mistakes 58:22,22

177:8

mitigation 229:9

mix 56:8 195:18

mobile 13:21 14:1

42:14 53:7,16 161:11

161:20

mobility 21:18 23:1

26:18 31:4 33:18

129:10

mobilize 66:4 174:8

model 22:16 23:14 65:8

65:9 74:12 98:12

141:22 151:7,11,13

159:4

models 74:14 96:22

moderate- 45:9 97:8

moderate-income 11:4

12:5 13:7 15:16 16:6

44:21 47:19 50:9

51:10,15 52:3 62:6

74:7 77:9 79:9 94:3

97:16 132:18 133:6

145:13,15 159:5

173:10 179:22 181:2

205:16 227:17 228:1

246:7

moderated 17:12 31:5

63:2

moderator 3:4,16 4:2,9

10:5,6,8 41:11 48:20

164:4

moderators 64:2

modernize 74:17

module 265:8

modules 166:9

Moines 257:19

moment 41:17 46:21

88:16 108:7 110:21

moments 149:16

momentum 168:4

moms 183:11

money 33:21 38:10

42:10 43:1 44:1,22,22

45:2,3 53:10 93:5

158:12 160:3 165:12

166:9 170:1 176:14

186:18 187:1,6 188:9

245:14 246:9 265:6,7

265:11,20,22 267:18

272:18

Moneywise 202:4

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296

monitor 23:5,9 70:5

102:4

monitoring 20:10

Montana 275:4

month 44:19,20 45:7

152:18 178:16 260:14

monthly 19:1

months 25:15,15 26:1

30:13,14 40:4 168:2

170:14 206:9 236:16

Morduch 15:15

morning 5:3,13 6:13

9:1,1 10:1 17:8 105:2

165:20 179:17 189:13

276:17

mortgage 4:8,13,14 8:1

8:5 91:11,12,18,19

92:5,18 166:14 227:4

227:12,16,18,20

228:4,10,14 229:6,11

229:14,18 230:2,5,7

230:11,22 231:2,3,19

231:20,22,22 233:8

233:11,14,17 234:4

234:20 235:9 237:16

238:2,4 244:11,13

253:3 254:10 255:9

255:20,22 256:5,11

256:12,17,19 257:1,5

257:7,10,12 258:6,9

258:13 260:2,11,20

261:7,21 262:18

268:7 271:6 272:1,7

272:16,18

mortgages 44:12 91:10

93:19 166:11 262:20

mother 178:15 191:9,10

191:19

motivation 107:1

move 29:22 105:8

110:17 120:16 121:4

129:1,4 135:3 157:4

171:3,17 179:13

182:19 191:10 197:11

211:10 216:4 245:2

moved 49:19 216:18

movement 216:9

moving 33:3 61:9 79:10

87:20 108:1 127:12

127:13 172:2 225:10

multi-family 237:14

multidisciplinary 38:20

multifamily 231:9

multiple 67:1 121:21

127:5 145:21 264:5

270:13

multiplied 189:2

multiply 187:10

multisector 32:8

multitude 199:6

Murphy 2:15 57:6 71:6

94:18 149:16,22

152:13 161:19,22

211:4 215:18 226:1,4

226:7,17

mutually-exclusive

47:22

MyPath 21:10,10 23:3

23:15 28:2 175:21

MyPath's 22:5

myth-busting 97:6

N

N.W 1:18

name 48:3 164:2 184:1

226:22

named 190:15

names 264:3,3

narrowed 133:12

nation 167:5 171:21

193:22 201:3 209:1

214:14

national 2:4 17:12

21:10 50:2,4,5,5

101:14 160:11 171:1

207:20 214:12 256:9

276:20

nationally 72:8

nationwide 257:15

native 52:2 140:8,18

147:2 176:2

nature 114:15

near 155:21,22 156:4

nearby 183:9,10

nearest 109:16 120:8

134:20

nearly 94:12 105:17

106:5 126:1,2

Nebraska 146:15

necessarily 22:12

61:15 66:5 146:5

necessary 17:1 239:18

need 22:6 24:11 26:10

26:12 28:16 30:2

38:11,12 44:22 47:11

47:16 48:13 59:11

71:17 72:5 80:2 81:1

101:19 106:15 124:15

146:21 152:9 156:8

158:14 169:17 174:20

180:8,16,22 194:22

200:8 201:6 203:8

207:15 208:8 209:10

210:15 211:10,13,19

215:14 216:11 224:8

224:22 243:1 246:20

264:14 268:1,1,2,13

268:14,14 272:8,12

272:14 274:9

needed 24:11 179:10

241:6 246:2 274:12

needs 18:6,14 22:4,9

27:15,16 46:8,11,11

46:12,13 61:12 71:15

71:16 147:7 150:14

152:11 165:9 167:1

169:4,10 175:5

177:18 180:6 195:7,8

215:11,12 224:12

227:22 228:14 259:3

275:9

negative 86:12 87:4

135:22 222:22

negatively 192:12

negotiating 247:15

neighborhood 3:15

6:18 32:19 74:7

104:11 107:3 121:2,6

127:4 133:15 182:21

192:6

neighborhood's 7:4

neighborhoods 106:9

107:5 108:3 135:21

148:14 159:10 160:8

183:9 200:7,8

net 40:10 178:18

network 135:5,6 195:3

233:13 259:6

networks 64:22 103:16

174:21 179:8

never 92:19 156:17

212:3

new 2:7 6:16 9:18 11:4

12:15 34:10,18 37:18

53:20 71:19 72:17

109:7 124:4 127:6

130:4 147:13 159:21

159:22 160:13 200:4

206:22 208:5 214:6

215:17 220:15 223:12

224:11 232:17 234:10

257:8

news 162:16 251:10,12

260:4

newsletters 260:10,12

nicely 40:11 206:16

niche 61:22

nickname 49:13

night 57:7 65:3 69:22

262:11

nine 24:19 184:10

Ninety 256:21

no- 27:18

no-cost 20:11

non-citizens 50:14

75:20

non-customers 18:21

non-metropolitan

112:1 146:15

non-mobile 14:3

non-written 46:6

nonprofit 21:10 37:20

84:2 85:12 176:21

182:21 193:14 195:20

202:17 259:14 264:20

nonprofits 32:11 34:2

47:17 68:8 174:6

175:13 179:2 202:8

256:22 259:19 264:12

264:13,18

normal 268:7

normally 80:3 130:11

north 122:18 123:3

275:4

northwest 119:2

nose 13:3

notable 37:7

note 62:19 63:1 94:10

132:6

noted 31:14 32:17 33:2

34:13,17

notes 71:1,4,7 128:16

186:5 193:6 200:13

noteworthy 260:1

noting 31:12

notwithstanding 152:5

NPF 245:18

nuances 250:16

number 7:12 26:9 35:16

51:16 53:2 65:9 75:10

76:22 83:2,7 85:9

99:10,15,20 100:9,18

104:4,5 106:3 128:10

129:8 133:12,22

141:3 161:15 170:5

170:16 171:19 173:13

174:16 180:18 202:5

202:16,20 222:10

numbers 30:6

numeracy 38:19

numerous 72:10

175:14

NYU 15:15

O

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objective 142:16 143:4

objectively 117:6

objectives 219:20

obscene 93:16

observation 59:7

162:13

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obstacles 228:17

obtain 142:1

obtaining 25:19 39:7

obvious 46:3 101:3

112:4

obviously 22:7,8 27:21

28:8 29:22 142:1

147:13 148:15 215:4

249:9 252:17 269:10

Ocanas 41:17

OCC 90:17 155:11

257:19

occasionally 162:16

occasions 100:18

102:4

occupies 120:14

October 182:4 256:8

odd 119:11

oddly 119:11

off-the-shelf 81:4

offer 35:12 62:3 96:4

104:17 151:20 156:18

166:12 201:4 227:20

228:9 229:6 238:21

241:11 244:13 245:11

263:12 276:4,6

offered 78:4 230:19

231:14 240:17

offering 81:8 83:7

100:16 228:3

offerings 176:17

182:13

offers 230:21

office 41:12 161:3

164:13 180:13

officer 48:3,4 191:6

officers 211:12

offices 75:13 164:21,22

197:15 256:2 260:13

oftentimes 21:2 84:10

96:2

old 21:19 79:18 181:5

182:6 190:17

older 105:17 190:22

OMB 114:12

on-the-job 194:9

once 92:20 102:16

129:15 152:18 159:22

244:17 246:15 248:10

one's 27:10 134:7

one- 118:6

one-and-done 181:22

one-fourth 118:4

one-mile 127:1,1

one-on-one 83:11

one-size- 36:3

one-time 28:5

ones 74:9 80:19 148:14

251:13

ongoing 5:20 260:19

online 8:2 230:5 233:2

235:21 236:3 248:9

248:10 252:22 263:2

268:1

onsite 180:15

open 10:3 51:20 53:20

56:2 64:5 74:6 162:15

189:15 197:15 220:11

261:15

opened 11:5 42:7 160:8

182:5 190:19

opening 3:2 9:10 44:11

65:2 103:17 181:19

182:9,12,18

operate 47:3 205:6

operating 195:11

259:12

Operation 200:12

opine 139:2,5

opinions 264:5

opportunities 21:22

31:5 44:9 62:22 72:22

83:20 151:12 165:4

167:16,21 168:16

180:10,19,22 181:7

220:11 227:9 228:16

232:13 256:18 258:12

259:3,6,17 260:3

opportunity 5:13 38:22

39:3 51:6 61:9 64:22

82:11 147:11 150:10

152:14,19 153:4

163:15 167:11 172:17

187:22 188:1 192:22

194:17 206:3,7 212:5

212:6 222:1 227:10

227:13 248:17

opposed 148:6,21

opposite 157:1

optimistic 63:21 92:9

options 229:22 239:11

239:13,16

orange 115:7 119:3,7

125:2 133:1

order 3:2 5:5 10:17 11:1

55:6 71:7 229:18

235:20 248:9 272:13

ordered 236:3

organization 60:3

164:5 183:4 184:19

193:3,14 198:12

221:1 222:17,21

223:4,7 274:7

organization's 21:15

199:11

organizations 8:4 12:4

34:20 35:7 36:6 60:3

68:3,13 69:10,13

75:14 78:16 80:15

81:6 101:15,15 168:7

169:2 175:3 176:13

176:20 177:2 182:10

195:9 199:6,14

202:13 207:12 208:6

221:13,14 259:7

261:1

organizing 225:17

original 133:14

originated 26:5

origination 229:8

originator 239:14

Orleans 200:4 208:5

OROZCO 2:16

others' 107:6

outcome 180:7

outcomes 13:16

outer 114:13

outlets 24:9

outlier 112:4 144:19

outline 115:1 241:4

outlined 261:11

outlining 33:9

outlying 114:11

outreach 74:14 176:7

180:3 183:8 205:4,17

232:17 261:8 262:5

outside 10:8 105:18

112:3 121:3 127:17

127:19 131:16 153:16

214:17,22 223:13

outstanding 64:14

249:9

overall 31:17 69:3

171:20 177:4

overcome 14:2

overdraft 19:2 88:14

89:3,20,21 90:1 157:7

overdrafts 89:15 91:7

93:16

overlaid 135:15

overlap 151:4

overlay 92:1 131:11,15

132:17

overlaying 134:2

overlook 224:21

overly 274:18

overreach 92:1

overreaction 92:2

overview 3:3 57:1

232:5 239:3,5 246:17

owners 37:9

ownership 12:17 62:17

P

P's 11:16

P-R-O-C-E-E-D-I-N-G-S

5:1

p.m 163:9,10 226:19,20

277:6

pace 161:12

package 12:10

packet 9:15 232:20

page 154:12 230:6

234:7,15 235:2,5,7,9

237:6,9,20 238:1

240:1 243:16 244:18

245:17 246:18 247:18

248:1,5

pages 240:3 244:18

246:16

paid 25:14 187:22

pairs 128:10

panel 6:13,14 7:22 8:6

9:10 10:5,17 11:2,13

15:13 16:20 17:5,10

18:2 26:8 30:18,20

31:1,5,12 36:3 40:12

40:20,21 48:17 49:1,8

56:22 57:2,3,5,16

63:2 164:7 166:14

222:13 226:11 227:3

227:8,9 232:16,19

panelist 18:2 21:9

23:21 164:16

panelists 13:4 17:17

19:19 31:8 34:12,16

41:14 43:4 50:1 57:17

63:12,20 64:2 164:13

panels 10:2,22 57:22

58:1 179:17

papers 238:7 262:19

parameters 137:13

parent 191:8 267:6

parents 224:19 225:11

park 115:18 116:16

parks 115:17

part 12:10 14:10 19:12

55:19 58:18 62:15

69:7 77:11 78:19

79:18 85:6 102:12

140:12 141:1 142:11

148:3,4 215:15 223:7

227:6 230:12,17,18

231:12 234:15 235:13

235:16,16,16 236:12

236:21 238:11,15

243:4 244:1 247:1

257:11 265:20 271:17

272:2 275:17 277:2

partially 29:20

partially-secured 24:13

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169:17 170:5 256:21

258:14 260:17

participate 218:8

245:18

participated 193:11

participation 30:10

182:8 232:8 257:16

258:1 260:5,21

particular 14:1,14 26:8

28:18 60:20 61:22

104:11 108:21,22

114:6 122:17 130:16

132:15 134:5 135:15

135:16 151:11 157:16

166:17 167:14 213:22

227:22 235:14 242:20

250:17 263:12 274:7

276:16

particularly 5:15 6:10

11:7 12:15 34:3 49:5

50:13 52:11 73:13

74:8 80:10 84:8 86:16

89:14 90:12 104:3,12

106:19 107:12,18

132:16 136:16 155:21

204:12 206:4 213:8

229:15 232:11

partner 60:3 74:11

78:17 167:8 214:16

partnering 31:20 36:4

partners 28:22 34:1,6

40:13 59:22 61:5,11

67:5 73:1 82:19 85:12

85:18 167:3 168:6,15

174:7 206:11,11

207:3,13,15 209:21

211:19 212:1,18

213:17,19 217:7

246:11 261:5

partnership 23:11 35:9

36:12,20 55:9 74:12

83:4 84:2,7 168:3,14

171:14 180:12 198:18

200:16 210:3 231:20

259:19 261:3

partnerships 7:17,18

12:3 17:21 23:12

30:20 31:2,14,18 33:9

33:11,17 34:10,12,17

35:3,6 36:3,9,13,15

43:22 44:4 46:1 55:4

59:17 78:12 80:10,14

81:5 163:21 169:9

174:5 175:15 194:21

197:18 199:21 200:19

256:18 258:12 262:7

parts 140:8 203:14

204:1 217:1 239:21

264:11 274:1

pass 194:12

passed 82:14

Pat's 265:18

path 22:7 23:20 268:10

pathway 176:5 214:2

pathways 21:11 232:10

Patience 3:8 17:6 30:13

48:6 70:8

Patricia 2:12 267:6

patterns 147:3

pavement 205:19

paving 21:11

pawn 141:12

pay 25:1 33:5 44:17

87:11 255:7

paychecks 21:16 84:10

payday 24:2,4,6 28:10

30:16 141:11

payment 15:11 231:1

244:13 265:22

payments 15:6 35:20

48:2 61:9

payoff 93:14

peace 20:2

Pearce 3:14 57:4

220:18,19,21

penalties 93:17

penalty 89:13

penetration 141:18,20

199:13

Pennsylvania 260:15

people's 67:7

percent 6:20 19:9,9

24:16 30:7,10 70:4,14

88:22 89:6 91:2 93:6

95:7 105:13,15,17,20

106:6 110:2,2,18,22

113:17,18 114:21

125:13 127:10,11,13

127:14 128:16,18

129:1 132:11,13

133:10,19 134:12

137:9,10,17 143:15

144:16 150:7 153:13

153:14,15,17 161:13

170:15,17 192:8

194:1 198:12 247:3

272:16

percentage 108:22

110:2 127:13 129:22

131:13 140:3 141:19

145:3 153:11

Perez 4:17 233:20

255:14

perfect 58:21 142:3

143:4

period 45:12 118:22

188:22 207:11

periods 15:8

persistent 174:10

persists 91:17

person 40:18 202:19

208:15 211:8 215:13

263:1 268:9,9

person's 48:4

personal 22:21 32:3

42:22 48:5 55:14

183:6 194:19 253:20

personality 58:5

personally 249:12

persons 25:4 188:11

241:10

perspective 19:13 77:2

220:3

perspectives 31:8

PHILLIP 2:20

Phillips 41:15 44:14

philosophy 22:5 33:2

phones 157:14

photos 181:9

pick 74:21 87:18 98:22

121:19 129:15 195:15

212:20 239:3

picking 127:2 140:13

picture 88:7,8 94:6 99:4

135:4

piece 7:7 55:10,18 56:3

56:12 66:21 101:2,18

101:22 147:11 157:3

198:9

pieces 216:8

piggyback 219:8

pillar 175:8

pinpointing 106:17

pitch 56:10

place 21:17 62:15

119:21 213:2

placed 25:13 218:21,22

placement 39:17

places 9:16 21:21 77:12

92:2 127:8 144:9

146:22 150:17 154:8

210:21 213:12

plaguing 28:8

plain-Jane 133:14

plan 24:5 136:21

217:12 247:14 261:12

planned 8:13 36:14

plans 180:9 229:21

platform 20:6 53:16

play 32:2 63:8 71:21

145:17 197:9 270:1

played 9:5 274:16

players 65:20

pleasant 64:15

pleased 182:11 227:2

pleasure 41:5,6 232:18

plenty 204:1

plot 113:2

plotting 112:17

plug 266:13

plus 18:20 25:8 26:10

73:2 238:17

point 13:11 54:11 66:22

78:9,22 80:2,5,6

81:15 97:22 117:4,9

124:8 135:19 136:20

137:1 138:8 147:22

151:3,21 156:21

159:17 186:6 199:1

201:4 203:21 204:18

213:22 222:22 241:20

265:18 267:11

point-of-sale 89:15

90:1

pointed 79:13

points 28:21 35:11 58:2

64:17 93:2 141:19

145:21 153:9 157:12

246:19 275:14

poised 84:19

police 90:18

policies 100:19 210:14

policy 2:21 4:13 12:14

17:7 30:19,19 62:11

78:11 80:3 90:4,9,11

90:14 161:10 233:9

270:22 273:12 274:9

poor 38:18,19 39:9

97:12,14 123:20

144:7 177:19 190:18

190:19

poorly 38:16

pops 245:5

popular 104:4 236:15

populated 106:18

114:15 146:2

population 34:21 56:19

61:18 77:13,17 78:15

78:20 79:19 81:12

110:1,3,14,15,19

111:1 116:17,20

117:20 118:4,7,9,10

118:16 119:20 122:6

125:12 131:2 132:11

133:20 134:5,13

138:12 146:6 148:6,9

195:9 213:10 258:16

population-weighted

109:14 116:3,10,15

populations 17:19

34:18 35:2 61:12 62:7

78:2 79:13 80:13

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Neal R. Gross and Co., Inc.

299

107:9,18 113:20

129:9 132:15 135:16

139:7,11 145:12,14

145:16 147:2 173:1

173:18 241:10 246:10

247:10

port 12:19

portfolio 72:21 228:19

272:2 275:17

portions 112:2 114:10

114:11,14,16

position 22:7 65:15

positioned 251:22

positive 86:11,13 157:1

159:19 183:12 193:1

217:14,16

possible 93:5,10

101:14 248:4

possibly 265:2

potential 104:20 182:11

207:13 229:13 232:18

241:11,12

potentially 15:6 137:17

Powell 4:10 226:22

powerful 46:20 66:20

251:19

PowerPoint 164:15

practical 156:1

practice 34:22 39:22

60:22 104:18 132:7

214:3

practices 17:13 31:19

34:14 87:11 88:11

91:18 92:1 177:15

pragmatic 80:7

pre- 199:4

preachers 197:6 199:12

precise 129:5,5

precisely 107:4

predatory 91:18

predominantly 14:17

preferred 76:15 107:10

premiere 37:20

premise 139:6

prepare 245:22

prepared 29:8

presence 204:13

present 2:1 35:7 184:6

259:1

presentation 3:19

13:14 18:5 19:19

21:14 27:14 30:7

104:14 106:21 149:17

153:9 159:8 170:9

206:10

presentation-wise

153:18

presentations 3:6 4:4

4:11 9:12

presented 10:5,17

13:11

preserve 119:9

President 3:11 31:6

233:8

presiding 1:20

press 56:15 121:1

pressing 175:1

pretending 91:5

pretty 80:20 81:21

91:20 123:6 124:20

153:8 189:17 211:7

237:3 249:22

previous 57:22 168:3

227:8

pricing 91:22 92:6

267:2

primarily 67:2

primary 6:21 18:14

27:20 38:7 105:6,10

105:21 107:1 139:11

143:17 233:5 264:7

prime 31:16

principles 58:6 59:14

177:5

prior 30:9 170:14

priorities 51:9 180:10

priority 192:19

prison 117:14

private 36:5 131:6

133:11,17 139:10

206:12 207:8 213:19

privilege 250:5

probably 82:9 83:19

85:9 115:3 184:12

221:5 247:21 248:22

269:2

problem 12:16 24:6

28:8 52:17 77:7,13

79:8 99:22 125:18,22

127:5 129:19 136:4

140:5 272:5

problems 12:5 17:18

29:9 79:12 100:4

106:14 140:7

proceed 9:22

process 9:19 100:21

196:9 208:3 225:17

252:17

produce 92:16 102:6

producing 85:7

product 15:20 19:4

24:14,16 30:16 44:2

61:16,20 62:9 65:11

65:15 68:5 71:19 94:4

95:17,21 176:17

190:12 249:8 263:12

267:1,4 275:10

productive 6:4

products 8:5 11:16,19

12:22 17:6,11,14

18:18 22:3,19 25:2,8

27:14,17 29:1,19

31:16 32:6 43:18

45:18 46:13 61:17

62:6 66:1,2,8 67:16

70:11 72:13 73:14

74:1,8 90:22 100:10

100:12,16 102:2,7,11

165:15 166:18 174:15

174:22 175:10,15

176:4 177:16,17

182:13,15 185:12

227:21 229:6,18

230:19,21 231:1,5,10

231:13,16 232:15

233:15 244:12,12

245:11 257:14 258:10

professionally 73:5

professor 3:7 262:17

proficiency 50:15

profile 192:19 271:8

profit-maximizing

72:20

profitable 53:10,12

70:1,2,2 72:6

profound 275:8

program 8:18 18:19,20

19:14 20:1,4 22:13,17

23:13,15 24:21 25:22

26:3 29:6,7 30:9,11

32:5 33:22 37:14 53:3

62:19 69:21 75:5,9

76:2 82:16 84:2 95:6

98:12 154:22 165:13

178:11,12 182:20

183:7 187:3,11

215:19 222:4 227:2

231:20,21 232:8

235:14 238:20,21

239:18 240:4,13,14

241:1 242:4,12,20

243:3 244:15 245:15

245:16 246:12,14

263:22 264:1 265:21

266:15

programmatic 34:12

programming 222:7

programs 8:6 22:11,13

23:14 28:18 34:4

35:17 51:8 66:10

83:13,15,21 84:10,20

99:20 159:19 165:7

173:19,20,22 183:2

190:16 212:9 224:2

228:18,22 229:1,2,13

229:20 230:7,18

231:3,7,7,17,18,19

232:1,6,7,9 233:15

237:12,16 238:17

239:4,7,16 240:12

241:3,12 242:1,11,15

242:17 243:11 244:10

244:22 245:18 246:6

247:4 250:3,22 257:5

264:10 269:15 270:6

276:7

progress 20:10 63:15

63:21 90:21 91:6

100:22 101:7

progressing 91:7

progression 44:9

project 30:8 193:15,20

202:16,20

proliferation 28:10

prom 23:7

promise 142:9 192:2,3

192:7 193:4,9,15

194:6

promising 85:5 177:15

214:3

promote 7:6 31:15

33:11 83:6 84:3

165:17 177:16 179:16

225:2 261:7

promoted 7:13

promotes 44:4 260:2

260:20

promoting 54:1 63:9,15

255:20 264:7

promotion 275:9,12

pronounced 104:14

pronunciation 18:4

property 240:16 250:15

proportion 72:4 143:20

143:21

proposals 193:12

proposition 59:9

pros 228:18 263:20

protection 12:7,9,10

41:13 163:17 220:18

protective 87:6

proud 82:22 89:9

prove 273:7

provide 6:12 14:3 20:8

22:14 27:8 34:18 35:1

39:2 45:1 46:4,16

62:21 77:22 84:16

104:15 138:4 174:4

181:1,6 185:8 187:6

188:17 189:14 196:20

232:8,10 243:11

244:10 256:12 259:5

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Neal R. Gross and Co., Inc.

300

261:20

provided 20:11 22:18

75:17 83:12 100:3

185:13 188:19 189:6

193:14 228:13 258:2

providers 42:18,19

142:4 169:21 170:5

provides 19:6 20:21,21

45:4 183:3 230:13

231:16 232:5 249:18

257:12

providing 29:1 36:20

87:2 94:2 172:16

176:4 183:1 218:15

223:22 227:5,11

233:14

proximity 156:4

proxy 144:13,15

prudently 166:22

prudently-underwritt...

166:13 227:15 256:16

public 2:9,21 7:5 27:16

80:3 86:10 130:2

131:7 144:7 156:5

162:15 183:11 191:10

public/private 32:8

publication 231:16

235:15,17 236:12,13

243:8 258:18

publications 230:12

235:1 236:3,6 238:5

241:15 262:1 270:18

publicized 201:21

publish 55:21

published 16:2

publishing 262:19

pulled 5:10

pulling 58:17 64:3

punched 13:3

purchase 231:21,22

237:13,17 262:2

purchasing 178:4,15

purpose 124:13

purposes 122:12

159:15

pursuing 67:10

push 46:19 66:7 265:2

pushing 38:4 223:5

put 9:15 21:7 41:4

117:16 137:14 142:21

147:17 148:5 159:3

167:22 168:13 201:12

202:19 242:3,14

243:17 245:19 248:20

269:3 276:3

putting 53:22 60:21

70:18 92:11 254:4

255:5

Q

quad 116:22

qualify 269:1 271:9

quality 22:18 35:11

165:6 218:15 239:17

quantity 90:2

quarter 125:15 135:8

quarter-mile 126:9

134:19

question 45:11 63:3,4

69:6,20 73:7 99:7

104:10 137:7,9

142:11 144:1 150:2

152:5,9 156:14 213:4

216:4,14,21 222:11

224:5 225:15 226:2

261:19,22 262:16

263:4

questions 20:14 45:12

45:15,21 64:6 138:22

139:21 159:10,12,16

201:5 219:10 252:14

261:15,17

quick 11:1 71:12 95:2

97:22 103:7 120:17

159:17 238:11 243:5

243:6 245:4 249:18

quickly 18:17 120:16

145:20 181:13 186:4

189:8 236:1 237:6

238:13 239:7 251:14

quit 216:1

quite 11:18 14:15,18,21

16:10 65:18,20 76:22

85:5,19 86:22 87:9,15

111:19 137:21 161:7

216:19 242:14 250:19

255:7 273:13

R

R 2:8

Rachel 15:13 175:19

Rachel's 15:20

radar 114:5

radial 108:4,11,18

121:18,19 126:15

radially-determined

126:13

radius 121:17 126:17

127:1,1,11 128:20

129:19 148:6,19

154:2,9

raise 206:7

raised 67:1 118:20

137:7 145:21 191:8

224:5

range 12:4 14:18 16:22

34:8 35:1,8 72:3,22

88:19 102:13 228:4

230:22

Rani 18:3,12 19:17

175:20

rank-order 109:17

110:9

rate 53:15 70:4 93:6

95:7,18 192:9 198:13

199:21

rates 25:6 141:16 198:6

272:8

ratings 35:12

ratio 242:3

Raza 50:2,4

re-entry 34:4

reach 18:16 34:18 46:2

46:15 82:20 220:2,4

reached 179:1 183:8

reaching 32:2

reaction 129:19

read 162:19

ready 35:22 46:22

real 21:4,7 42:15 94:22

106:14 143:10 150:20

150:21 151:12 178:21

189:22 194:6 212:17

real-live 252:14

realistic 130:18 197:19

reality 152:21

realize 43:9 136:2

169:12 171:6

realized 222:12

realtor 268:8

reason 130:15

reasonable 113:22

114:2,4 139:1 141:15

reasonably 138:15

reasons 38:7 42:8,12

79:5 169:7 249:16

rebuilding 176:18

receive 25:21 161:1

185:2 196:18

received 23:19 162:5

257:2 258:19

reception 69:22

recipes 55:21

recognition 208:19

recognize 93:19 139:3

159:11

recognizing 106:1

recommendations

20:21

record 15:22 103:12

163:9 226:15,19

277:6

recorded 8:14

rectifying 58:22

red 115:5 117:10

118:22 124:21 125:1

126:2,3,20 132:22

200:5

redevelopment 180:16

193:3

reduce 262:21

reduced 67:6

reducing 54:18

reduction 38:3

referral 174:21 179:8

referrals 220:7

referred 178:2,8 268:8

268:12,21

referring 38:1

refinancing 256:13

refined 107:2 142:12

219:15

reflect 44:9 70:20

reflecting 82:8

reform 273:19

regard 79:17 85:21

120:3 151:18

regarding 17:14 21:7

24:21 260:11 261:21

regards 186:18 218:1

region 164:3,10,11,18

174:2 184:4,19,21

187:13 197:1,6

206:21 208:10,20

214:21 217:15 219:22

233:22 245:5 256:7

257:9 258:4,21

260:21

regional 7:12 164:3,9

164:11,21 172:11

184:3,21,22 217:21

217:22 219:22 221:22

222:6 233:20 236:5

256:1 260:9,13

regionally 211:12

regions 44:7 115:4

217:16,22 236:7

256:6

regular 16:1 56:1 268:7

regularity 103:17

regularly 73:8

regulated 68:22

regulation 62:11

regulations 63:5 73:8,9

73:11,21

regulators 62:11,21

63:8 82:19 155:20

regulatory 63:4 69:14

99:18 100:19 177:5

193:2 213:17 258:19

261:4

reinforced 202:15

reinforces 254:6

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reinvestment 181:7

related 36:16 58:2

59:15 62:17 178:3

180:19 225:14

relation 88:17 155:12

relationship 52:5,13

69:3,7 182:19 194:19

218:20

relationships 14:18

36:10 40:22 41:7

48:12,18,19 49:3 52:9

54:18 194:20 202:22

203:2,3 228:5

relative 138:16 257:6

relatively 37:18 126:6

137:16 138:1

relatively-low 138:6

152:6

relatively-newish 86:7

relatively-smaller

273:1

release 56:15 181:11

257:11

releasing 183:16

relevant 74:8 122:10

151:13 162:10

reliable 46:16 121:5

reliance 7:1 179:18

reliant 106:19

rely 105:13,17

remains 164:1

remarkable 113:8

166:18 273:13

remarkably 147:7

remarks 3:2 4:19 9:10

37:5 49:15 77:20

218:4

remember 200:2

224:14

remind 8:13 217:9

226:11,13

reminded 42:22 44:8,15

reminders 20:22

reminding 42:7

remote 144:3

rendered 154:22

renewed 11:20 160:21

Rengert 3:20 104:10

105:1 111:7,10,17,21

112:19,22 113:14

115:13,19 116:1,6

117:21 118:6 119:4

119:13,19 120:13

123:19 124:3,7 128:1

128:11,14 129:17,20

130:10,13 132:8

145:5,8,19 147:4

149:4,13,21 154:14

155:3

rental 35:19 237:14

repaid 198:21

repair 15:5 166:8

repeat 139:17

repeated 219:16,16,16

replicate 177:15

report 35:19 50:3

reported 19:10

reports 177:7

represent 137:18

205:12 232:12 274:1

representation 125:6

representative 259:12

259:14

representatives 179:1

179:3 206:20 260:18

representing 31:8

163:16

reputation 223:20

requests 66:20 230:1

require 120:1 269:14

270:9

required 15:2 28:3

51:20 241:19

requirements 25:19

26:2 51:19 62:14,18

69:14 239:17

requires 154:16 242:21

requiring 25:10

research 6:16 11:3,6

13:5,21 14:8,9 21:2

22:4 26:20 27:15 42:7

50:4 63:2,9 67:3,5,6

67:13 77:18 79:15

80:16 85:8,17,17,18

86:3,7 98:15 101:6

134:4 141:2 143:8

149:5 171:8,22

210:11 229:12 242:15

251:5 262:18 270:21

277:1

researchers 63:5 85:13

104:5 108:4 126:15

127:3

reservations 140:9

Reserve 168:12 171:16

257:18

residence 138:17

resident 113:20

residential 147:3

159:10 252:10

residents 106:19 108:9

109:4,6 133:5

resides 77:13,13

133:20

residing 105:18

resilience 45:4 89:6

166:2 173:10 179:11

resolution 138:4

resonate 35:5 205:10

resource 34:7 149:11

149:12 160:10 220:5

232:5,17 239:20

248:20 263:9

resources 4:8 7:6 8:3

34:3 54:1 107:21

108:1 165:8 174:8

195:16 196:21 208:11

213:20 215:9 227:3

229:9 238:6 240:4

242:19 243:2 248:11

250:21 251:4,11,12

255:5 261:20 262:9

269:1 272:9

respect 13:8 27:18 28:7

29:12

respond 70:20

respondents 257:3

response 8:8 48:5

69:20 137:9 145:11

230:1

responses 65:3

responsibilities 211:14

responsibility 66:18

211:11

responsible 78:10 91:2

165:8 166:13 177:16

227:16 228:10 232:14

233:14 258:9

rest 92:21 113:11

restrictions 92:5

result 53:22 177:14

180:11 181:16 205:13

results 6:16 40:5,7

182:3,5

resumed 103:12 163:9

226:19

retail 173:17

retain 229:14

retirees 196:7,8

return 72:22

REV 2:6

revealing 51:12 52:7

53:8 54:15

revert 90:5

review 276:16

reviewed 5:19

reviewing 100:18 171:8

revisit 225:1

revitalization 192:6

revitalizing 213:12

revolving 19:5

rewards 44:20

riding 100:5 200:3

rigorous 67:12

risk 114:6 189:5 198:17

220:20 222:7 229:9

262:21

risks 72:22 229:7

River 177:20 178:2,5

road 21:17

roaming 262:13

Robert 2:2 79:5

Robert's 147:22

robust 12:9 53:2

Rockefeller 208:18

ROI 68:5

role 9:5 11:3 32:1 47:16

62:10 63:8 92:12 96:3

197:9 227:11 233:13

270:1 274:15

roles 216:22

roll 57:11 84:19

rolled 83:10

rolling 83:17

Ron 4:13 233:7,8,10,17

248:13 255:12,14

266:10 273:9 274:6

room 1:18,18 67:5

140:4 198:2 222:16

roughly 184:10

roundtable 168:2

170:19 258:5

roundtables 195:6

218:7 228:13

row 110:10

run 207:6 249:21

rung 165:5

runs 207:14 217:19

rural 105:20 109:7

140:10,18 144:1,3,14

145:21 146:8,12

147:1,15 148:11,16

150:20,20,21 151:2

156:8 196:19 228:1

229:15 247:10 250:4

252:7 258:7,10

rush-hour 140:17

RYAN 2:18

S

Sacrament 192:9

Sacramento 191:22

192:1,2,3,14,17 193:3

safe 11:19 17:5 31:15

62:4 82:21 83:6

165:18,20 166:2

171:1,7 173:18

174:15 258:9

safety 14:4 17:11

Safeways 87:8

sales 53:19 198:8

San 2:5 21:12 82:15,22

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84:3 157:19 164:11

183:18 184:3,20

187:13 192:18 217:15

Sandra 4:12 166:17

232:21,22 233:2

234:1 248:19 249:12

249:16 255:14 262:22

Sandra's 233:4

sanity 273:12

sat 65:10 222:9

Savannah 259:2,7,13

259:15,18,20

save 23:7,7 44:18,19,22

44:22 45:2 244:15

saved 267:19

saves 274:19

saving 20:17 45:3,8

178:16

savings 15:2 22:21

23:19 24:5 25:4,12,13

25:19 27:10 44:12

65:22 66:1,4,8,10

67:12 83:15,22 84:4

88:12 166:1,3 178:11

178:20 182:16 224:9

224:12 271:15 272:19

saw 19:18 88:17 182:5

202:9

saying 76:20 81:21

89:5 93:2,12 112:9

137:19 139:17 141:6

148:9 149:18 150:15

154:1,5 162:17

206:15 224:1 267:6

273:14

says 93:9,11 123:4

186:1,2 190:10,11

215:13 242:10 266:15

SBA 166:21 167:5

197:1 214:13

SBDCs 167:5 214:16

scalable 72:19

scale 66:4 68:20 78:7

88:11 98:13 100:5,6,8

196:4

scaling 88:10

scenarios 165:9

schedule 98:20

scheduled 190:5

Schneider 15:13

175:19

school 2:3,8,12,21 3:7

38:17 78:17 81:19

101:4 105:15 131:2

134:13 136:9 193:16

262:19

schools 34:3 183:14

scientific 156:1

score 20:15,15 39:7,8

92:3 178:7,19 196:8

scores 25:5,11 40:9

69:1 175:7 176:3

241:6

scoring 177:6

screamed 47:5

screen 195:2 237:19,20

scribble 71:9

scroll 239:6

search 39:16

season 196:4

seasonal 194:5

second 6:14 12:2 15:18

17:5,10 21:9 35:3

68:17 86:6 101:2

140:19 153:20 179:13

191:21 192:1 211:15

257:8 261:22

second-chance 179:6

182:15

secondary 228:20

seconds 156:13,15

secret 201:19

section 163:14 227:1

239:3,20,20 240:7

242:10

Sections 235:11

sector 36:5 89:9 206:12

213:19

sectors 31:20 34:1,9

secure 19:20

secured 25:3,18 29:12

29:19,20

security 19:21 26:18,22

27:12 246:1

seeing 40:9 66:16

122:8 140:16 161:15

seek 206:9 261:16

seen 76:7 83:1,10 99:17

99:20 100:9,15

103:22 155:6,19

213:11 214:21 220:5

225:8

segment 46:10 71:19

76:6

segments 46:8 71:14

segregated 164:20

221:1

select 27:21 28:1

153:21

selecting 51:11

self- 86:20

self-employment 86:18

87:3

self-help 2:6 23:18

self-sufficiency 192:11

sell 37:16 266:14,19

272:10

sellable 252:12

seller 239:13

selling 228:19

semester 76:13

seminar 25:21

Senator 273:18

send 168:22 262:22

sending 48:1

senior 218:22 233:3,8

seniors 139:9 193:17

sense 5:16,21 30:14

72:20 146:1 148:20

161:11 208:17 212:16

sensitive 128:3 154:6

sentence 242:3,4

September 184:13

193:5,8 235:4

series 8:3 68:20 176:9

182:1 222:2 230:12

261:17

serious 79:11 274:20

serve 34:21 61:18

71:14 74:11 76:6

95:13 96:1 149:7

160:22 166:22 177:10

195:9 228:15 229:3

246:4 247:7 252:18

252:19 260:15 262:5

272:14

served 75:13 122:6

126:21,22 199:16

245:8 255:10

service 7:6,10 13:1

20:11 27:9 39:15

42:18 46:16 50:19

51:22 77:16 89:12

175:3,5 179:3 180:6

275:10

servicer 239:13

services 4:14 7:15 13:9

13:21 14:2,3 15:10,14

17:1,22 22:2 27:17

29:2 31:3 32:1,7,16

32:22 34:8,19 35:1,12

39:2 40:6 42:14 53:20

53:20,21,21 61:6 78:1

78:3 100:10,16 104:3

104:3 137:17 140:11

140:21 141:11,13,18

173:17 175:20 176:5

177:18 179:10,16,19

180:21 181:2 183:4

185:12 227:21 229:7

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T

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269:3 275:2,21

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30:22 36:2 39:15

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260:18

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Thirdly 94:2

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47:8 51:12 52:18 54:8

59:6 60:11 78:19

94:13 103:5 104:10

153:20 186:13 202:9

234:4 266:9

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78:22 87:19 155:8

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131:17 191:15

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40:6 56:13,16 57:16

63:12 75:7 93:1

143:12 150:5 162:13

162:15 176:11 191:9

191:12 194:2 211:14

215:12 234:16 235:16

236:15 238:4 259:16

261:22

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127:15,17 132:14

138:10 153:10,13,16

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Tour 202:4

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252:2,20,22

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109:18 110:4,10,12

110:15 112:10 113:1

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116:16 117:19 118:8

118:9,15,18 119:3,7

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122:3,16,20,22 123:5

123:7 124:9,10

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145:3,6

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traction 210:21

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25:8 250:3

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165:15 251:8 254:15

254:20

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188:12

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156:5

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144:7

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271:1

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trillion 92:14

tripping 89:13

trouble 274:22

true 143:16 164:1 196:1

198:20 242:8 273:6

273:17

truly 71:13 83:6 242:7

trust 2:13 3:13 42:2

46:15 54:17 57:21

58:2,20 59:1,15 78:4

78:5 163:22 197:22

198:1,2,3 200:16

trusted 34:19

trusts 212:17

truth 179:20

try 12:4 16:12 39:5 40:3

57:14 98:22 99:3

155:11 181:13 187:16

188:6 189:14 190:4

197:9 204:19 208:5

218:17 220:3,11

234:17 248:3 254:22

trying 11:20 15:22

34:21 46:2 50:20

56:14 63:19 65:11

68:4,6,8 76:20 77:10

99:22 129:6,8 137:14

143:1 147:8 158:11

175:4 185:9 187:9,19

187:20 190:9 193:1

194:3 195:9 219:18

239:5 241:13 253:20

tunes 211:5

tuning 127:22

turn 8:19 10:15 99:5

129:10 152:9 183:17

turned 47:7 104:6

turnovers 52:11

tweet 42:1 236:15

tweeted 236:11

tweeter 237:1

Twenty 132:11

twice 89:10

two 24:8 30:5 33:13

39:10 40:6 42:2 46:14

49:22 55:15 56:8

66:11 77:5,12 78:22

79:6 85:6 95:2 96:20

112:9,11 113:21

116:2 121:20 123:2,5

124:9 126:16 127:7

138:2,22 144:2

146:17 150:18 158:12

164:21 171:5 172:19

174:1 177:9 178:17

182:4 186:4,8 189:10

206:9 215:12 238:14

242:15 256:2 258:17

259:13 271:4 275:2

275:14

two-tier 29:18

type 134:5 188:17

199:13

types 29:18 84:20

107:13 113:21 202:6

typical 119:10

U

U.S 50:12 75:6 191:4,6

Uh-hum 115:19 119:4

119:13 144:21 210:6

ultimate 26:15

ultimately 26:17 106:15

118:12 211:21

unable 41:17

unaffordable 92:7

unbanked 13:12 33:19

75:19 82:20 83:2 89:1

145:3,12 170:10,15

170:16 171:19 182:14

206:22

unbelievable 161:12

underappreciated

203:19

underbanked 13:12

18:16 24:3 75:18 89:1

173:1 174:14 175:2

207:1

underestimates 122:5

undermines 192:10

underneath 155:2

underserved 4:1 17:18

18:10 19:21 24:3

71:15 160:6 166:5

173:7,17 182:14

228:11 247:9 256:14

understand 27:2 93:14

97:6 137:15 151:2

174:18 193:21 219:18

230:4

understanding 27:10

104:8 192:16 257:4

undertaking 276:20

underwriter 249:15

unemployment 172:22

192:7,10

unexpected 43:2 44:17

Unfortunately 253:4

uniformly 13:19

Union 2:6

unions 82:18 89:10

195:19 272:12 273:3

273:10 274:5

unique 32:1 36:7

uniquely 84:19

unit 118:21

United 13:8 88:20 91:19

106:8 168:11 171:15

units 183:11

Universities 197:4

University 2:3,8,20 3:7

115:15 199:9

unsecured 19:5

unsolicited 258:2

unsung 210:9 212:22

unsustainable 87:10

up-to-date 248:4

update 248:8

updates 247:4 248:5

updating 246:22 265:11

upfront 157:12

upheaval 224:15

upper-income 124:11

urban 50:5 140:6

147:13 148:10 156:5

204:14 270:12,17

urban-bound 204:4

usable 85:11

usage 53:7 141:13,16

141:20

USDA 230:14 243:19

261:6

use 6:21 7:9 17:21 22:3

23:4 27:15,15 47:12

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73:21 105:10 108:2,4

113:18 115:14 126:15

126:22 129:7 130:14

131:3 132:7 143:15

143:21,21 148:10,11

151:5,6,6 159:13

165:18 190:13 218:12

225:3 228:21 231:8

234:6 235:2 238:11

239:12,14,16,22

241:14 242:8 249:17

251:14 264:4 274:2

useful 7:8,20 8:11

85:19 86:2 140:3,7

233:18 262:15

useless 92:15

uses 20:7 43:6 135:13

182:22 244:12

usual 103:3 266:3

267:17

usually 46:11 215:12

Utah 150:22

utilization 8:9

utilize 21:16 61:3

utilized 57:21

utilizing 20:5 29:2

272:17

utopian 80:7

V

VA 230:14 261:6 276:3

276:7

vacant 180:15

vacated 181:5

validate 211:19

Valley 192:18

valuable 85:19 99:15

228:13 238:7 255:7

value 95:15 163:5,6

191:16 207:17 218:11

262:3

value-added 69:7

valued 46:17

values 58:6 59:3

van 200:3

variability 154:3

variables 134:7

variation 13:15,17

117:22

varied 260:3

varies 111:17,19

variety 81:14 138:3

177:11 230:6 232:6

239:12 250:14

various 22:5 23:16

195:8 196:19,19

249:1 257:5

vary 117:18

vast 131:18 134:22

135:7 258:15

Vaughn 4:7 164:12

194:13,16

vegetables 147:20,21

vehicle 7:18 74:13

131:6 133:11,17

Venture 206:11,11

207:3,15

venue 199:18

verifiable 26:1

versa 124:12

version 263:8

versus 69:8 109:7

127:6 129:15 140:18

151:11 161:3 228:19

veterans 243:18 246:14

276:5

viability 152:2

viable 153:3

vibrancy 31:14

vice 124:12 233:8

video 225:8

videos 46:5

view 65:8 74:18 104:8

223:1

viewing 8:15

views 235:9 249:10

Villafranca 4:3 163:11

164:2 200:20 201:11

206:1 208:21 209:3,6

209:9,16 210:7 211:2

214:11 220:14 226:7

virtually 206:20

visit 268:14

visual 181:6

voice 42:5 273:12

voices 47:18

volatility 11:11,12 12:1

14:14 15:1 16:7

volume 245:14 273:1

voting 199:16

vouch 205:2

vulnerability 11:7

vulnerable 75:15 107:9

107:15,18

W

W 2:18

wage 86:22 194:4

wages 194:5

wait 225:6 236:21

waiting 247:6

wake 11:8

walk 24:22 65:16

108:13 123:21 124:5

130:1,11,12 131:14

152:18 198:1 232:16

233:1 253:1

walkability 148:13,14

wanted 9:19 27:21 49:4

49:17 64:13 65:4

69:11,16 87:18 98:2

143:7 179:13 186:22

187:1,5 189:11,14

190:3 195:13 205:19

212:13 223:10 225:15

229:11 245:13 261:16

261:17 262:10 271:3

273:8

wants 77:17 266:14

274:2

war 69:8,13

Washington 1:19 201:2

233:4 250:8

wasn't 27:22 37:14 75:2

75:3 160:14 268:10

watch 196:11 201:12

water 200:12,14

wave 100:6 102:5

way 6:4,4,21 9:22 15:3

34:17,22 55:22 60:11

64:12 69:2 72:8 79:3

80:2 81:2 93:5 95:13

95:14 96:21 101:11

103:21 105:21 114:13

115:20 136:19 139:15

144:17 147:8,8 148:4

148:12,22 151:10

152:14 156:2 157:3

160:11 162:1 168:11

171:15 178:8 197:17

197:19 208:16 209:19

213:15 218:14 225:3

248:4 254:11,18

264:4,13 266:18

269:11 271:14

ways 6:2 11:4,17 14:1

17:22 46:6 60:14,14

61:7 63:13 67:1 74:16

79:6 86:15 87:1 90:14

99:16 104:9 105:10

116:2 130:4 145:16

154:3 159:8 210:17

215:17 256:15

wealth 54:12 55:17

wealthy 185:16

weapons 201:20

weather 11:22

web 230:6 234:7,15

235:2,5,7 237:5,9,20

239:22 240:22 244:18

244:18 246:16,18

247:18 248:5

webcast 8:14

webs 33:9

website 8:7 202:12

234:21 262:14

week 235:7 258:21

weekly 236:7

weeks 40:3 84:1

WEICHER 2:22 64:8

118:19 119:5,14

weigh 117:15

weight 116:21

weird 119:21

welcome 5:16 50:16

welcomed 42:20

welcoming 5:7

well- 26:11 271:17

well-being 18:8 32:3

well-served 123:6

well-spent 64:12

Wellbeing 20:4

wellness 18:19 19:14

19:16 20:15 54:12

55:14,14 183:1

Wells 89:18 90:12

went 45:11 48:17 52:16

55:13 73:16 103:12

150:4 163:9 190:5

226:19 236:14 263:17

270:4 277:6

weren't 22:11 171:5

West 52:20 53:1

wheelchairs 198:15

wheelhouse 14:21

whoa 149:18

whoopee 149:18

150:15

wide 13:17 203:18

228:4 236:9 239:12

275:3

wider 102:13

widespread 140:13,15

wife 185:15,22 217:9

249:14

willing 29:5,6 59:2

win 100:2

win/win 35:7

win/win/win/win/win

60:11

winding 26:7

window 152:17 202:1

Wisconsin 173:2 174:2

178:8

withstand 89:8

Wolf 119:8

Women's 178:9

wonder 156:12 266:8

wonderful 41:22 48:11

71:4 88:4 90:22 93:4

145:9 166:15 188:1

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wondering 147:10

154:10

word 57:22 113:13,15

words 54:22

worked 36:14 72:14

82:17 144:5 160:6

167:2,9 176:19

188:14 200:18 209:21

220:16 261:3

worker 23:18

workforce 31:3 37:12

39:15 188:15,20

213:18 214:6

working 5:21 11:15

12:3 23:17 34:20

35:18 36:15 40:8,11

54:20 56:17 60:5 68:8

98:14 168:17 170:6

171:9 175:3 176:1,22

183:13 198:5 200:5

208:4 213:18 216:9

220:10 247:1 250:6

263:21 264:15 270:19

277:2

workplace 51:14

works 35:21 46:14 56:6

104:18 177:20 178:2

178:5 199:15 216:7

249:14

workshop 256:8,11

257:4,10 260:6

workshops 167:6

176:10 177:12 187:7

188:10,12

world 61:6 67:12 85:12

154:15 231:9,10

274:21

worse 79:8 140:15

worth 30:11,12 40:10

161:17 170:11 178:18

229:8 271:4

wouldn't 131:14 139:21

147:14 271:8

wow 24:17 111:16

wrap 181:12

wraparound 27:9

wrong 248:1 254:17

268:10

X

XY 116:8

Y

year 88:20 89:2,12,20

161:13 168:19 169:5

194:1 219:2 222:3

235:4 247:15,22

253:15

years 5:12 21:19 24:20

34:15 40:4 56:13

63:14 68:2 72:15 73:3

81:13 82:14,15 83:9

85:9 88:15 90:5 91:14

99:10,15 103:18

141:3 144:2 167:3,8

167:10 174:12 176:11

178:17 182:4 184:13

184:14,16 189:21

190:16,17,22 192:17

194:2 195:4,5 202:5

202:16,21 210:16

215:6 220:14 224:15

225:6 233:12 253:5

271:6

years' 233:11

yesterday 5:8,19 6:11

9:4,12,16 49:18 64:11

66:14 67:1,21 69:9

70:3 76:4,12 85:22

88:4,12,18 142:14

189:12 202:10

yesterday's 7:16

175:12

York 2:7 109:7 124:4

127:6 130:4 147:13

159:21 160:1,14

257:8

young 50:15 93:13

182:20 186:19 187:2

187:6 188:9 190:6,14

194:4 215:1,13,14

younger 27:6 191:9

youth 7:14 21:12,15

22:4,6,18 23:4,14,18

30:8 84:8,9 189:5,5

189:16 193:16,16

Z

zero 115:6 125:1

132:21 133:3

zero-in 100:13

zip 121:10 181:16

Zone 192:2,3,7 193:5,9

193:15 194:6

0

1

1,000 25:10 89:2

1.4 92:14

1:23 163:10

10 3:7 44:20 63:14 68:2

81:13 82:15 88:14

99:14 103:10 153:15

156:15 161:12 237:8

10-plus 82:14

10,000 237:1

10:53 103:12

100 20:16 194:9 202:13

103 3:17

105 3:20

107 133:16

109 134:14

11:05 103:10

11:09 103:13

12 25:15 30:13

12,500 235:10

12:07 163:9

125 88:20

12th 256:8

13 190:22

131 34:6

14 133:3

140 42:1

146 235:6

15 126:22 129:1 144:4

15,000 56:16

150,000 117:19

155 206:12

15th 235:4

16 21:19 190:17 199:17

16- 84:16

160 188:11

163 4:3

17 3:8 19:8 133:2

17-to-24-percent 95:17

17-year-olds 84:17

172 4:5

17th 1:18 247:14

18 84:9 168:2 170:14

183 4:6

185 133:13 134:15

19 192:8

194 4:7

19th 258:6

2

2 89:19 170:17 198:12

230:17,18 235:16

243:4 247:1

2:30 226:19

2:38 226:20

20 26:6 44:19 45:7

91:14 167:8 184:16

194:1 215:14 233:12

200 19:7 153:2 179:1

200,000 126:8

2001 165:13

2008 24:2

2009 170:15

2010 163:20

2011 106:4

2013 38:1 170:16 180:2

2014 188:10,11,13,22

189:10 195:4

2015 178:1 182:4

188:18,19 189:1

192:4

2016 106:5 178:13

188:19 189:1 193:5,8

193:8 235:4

2017 1:13

2018 247:16

21 143:15

226 4:10

23 112:5

234 4:12

24 19:9 21:19 25:15

30:13

248 4:13

25 133:10,19 150:7

153:14,17 184:14,16

271:22

250 29:15 168:21

2500 236:5 258:16

255 4:17

27 1:13

27,000 26:5

276 4:20

277 4:22

28 6:20 150:7

3

3 231:12 235:17 236:12

257:11 272:16

3:33 277:6

30 3:9 26:21 88:20,22

30-year 272:6

30,000 105:13

32 75:6,8

33 271:6

35 14:11 233:10

37 193:12

37,000 189:5 191:13

38,000 235:8

380 189:1,2

3H 172:5

4

4,000 119:10,12 236:2

240:3

4:15 219:5

40 105:13,20 194:7

215:6 247:3

40,000 199:1

400 44:16 89:7 178:16

41 3:10

45 168:22 170:21

4500 235:8

47 258:14

49 3:12

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95:7 170:15

5,000 19:7

5.3 192:9

50 30:7 89:6 105:15,17

129:15 137:10

50.1 125:13

500 25:5,10 44:16 89:7

93:6 196:5 266:6

55 3:13

550 1:18 178:7

57 3:14

6

6,000 235:12

6.45 106:6

60 26:21 193:16

6010 1:18

624 178:7

6300 106:6

65 105:16

68 110:22 111:3,5

128:17,20

680 92:3

6th 236:12,14 257:8

7

7.4 70:4

700 260:17

75 110:2,18 113:17

114:21 127:10,14

128:16 129:15 132:13

137:9 138:1,3 139:1

144:16 153:13

750,000 117:19

77 271:20

78 176:20

8

8 3:5

8,000 23:18

80 39:1 134:12

85 169:1

9

9 141:19

9:00 1:16

9:07 5:2

90 91:2 110:2 113:18

127:10,13 128:18

129:1 138:2,3 139:1

900,000 126:1,2

92,000 106:5

93 206:5

98,000 106:4

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COURT REPORTERS AND TRANSCRIBERS 

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C E R T I F I C A T E

This is to certify that the foregoing transcript 

In the matter of: 

Before: 

Date: 

Place: 

was duly recorded and accurately transcribed under 

my direction; further, that said transcript is a 

true and accurate record of the proceedings. 

 

 --- Court Reporter 

310

Meeting of the Advisory

Committee on Economic Inclusion

FDIC

04-27-17

Washington, DC

UNOFFICIAL/UNREVIEWED