484

Minutes

of

The Meeting of the FDIC Advisory Committee on Economic Inclusion

of the

Federal Deposit Insurance Corporation

Held in the Board Room

Federal Deposit Insurance Corporation Building

Washington, D.C.

Open to Public Observation

April 27, 2017 – 9:00 A.M.

The meeting of the FDIC Advisory Committee on Economic Inclusion (“ComE-IN” or 

“Committee”) was called to order by Martin J. Gruenberg, Chairman of the Board of Directors of 

the Federal Deposit Insurance Corporation (“Corporation” or “FDIC”).

The members of ComE-IN present at the meeting were Robert A. Annibale, Global 

Director, Citi Microfinance and Community Development; Michael S. Barr, Professor of Law, 

University of Michigan Law School; Janie Barrera, Founding President and CEO of LiftFund, 

Inc.; Ted Beck, President and Chief Executive Officer (“CEO”), National Endowment for 

Financial Education; Kelvin Boston, Executive Producer and Host of PBS’ Moneywise with 

Kelvin Boston; Jose Cisneros, Treasurer, City and County of San Francisco, California; Martin 

Eakes, CEO, Self-Help/Center for Responsible Lending; Rev. Dr. Floyd H. Flake, Senior Pastor, 

Greater Allen A.M.E. Cathedral of New York; Ester R. Fuchs, Professor, School of International 

and Public Affairs, Columbia University; Andrea Levere, President, Corporation for Enterprise 

Development; Patricia A. McCoy, Liberty Mutual Professor of Law, Boston College Law 

School; Alden J. McDonald, Jr., President and CEO, Liberty Bank and Trust Company; Bruce D. 

Murphy, Executive Vice President and President, Community Development Banking, KeyBank 

National Association; Phillip L. Swagel, Professor in International Economic Policy, University 

of Maryland; and John C. Weicher, Director, Center for Housing and Financial Markets, Hudson 

Institute.
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Wade Henderson, President and CEO, Leadership Conference on Civil Rights, and 

Counselor to the Leadership Conference on Civil Rights Education Fund; Mark W. Olson, 

Chairman, Treliant Risk Advisors; Manuel Orozco, Senior Associate at the Inter-American 

Dialogue and Senior Researcher, Institute for the Study of International Migration, Georgetown 

University; and John W. Ryan, Executive Vice President, Conference of State Bank Supervisors

were absent from the meeting.

The sole member of the Corporation’s Board of Directors present at the meeting was

Martin J. Gruenberg, Chairman. Jonathan Miller, Designated Federal Officer for the Committee 

and Deputy Director, Division of Depositor and Consumer Protection, also was present at the 

meeting.

Corporation staff who attended the meeting included Michelle Adams, James L. 

Anderson, Michael W. Briggs, Kitty Chaney, Karyen Chu, Kymberly K. Copa, Carolyn D. 

Curran, Timothy Davin, Christine M. Davis, Timothy W. Delessio, Paola L. Diaz, Stephanie M. 

Downing, Keith S. Ernst, Lessie P. Evans, David Friedman, Janet R. Gordon, Shannon N. Greco, 

Nicholas Kazmerski, Patricia S. Gurneau, Barbara Hagenbaugh, Emerson B. Hall, Angelisa M. 

Harris, Simin Ho, Shamara L. Humbles, Monika S. Jansen, Sally Kearney, Sandra Kerr, Cheh 

Kim, Mauricio Lainez, Laura Lawrence, Alicia Lloro, Joan M. Lok, M. Anthony Lowe, 

Christopher Lucas, Jonathan N. Miller, Benjamin Navarro, Janet V. Norcom, Elizabeth Ortiz, 

Yazmin Osaki, Mark E. Pearce, Teresa Perez, Sylvia H. Plunkett, Stephen J. Popick, Lee Price, 

Kristopher Rengert, Richard Schwartz, Patience R. Singleton, Kimberly Stock, Thomas E. 

Stokes, Lori Thompson, Clinton Vaughn, Eloy A. Villafranca, R. Glen Walker, Jeffrey 

Weinstein, and Angela A. Wu.

Chairman Gruenberg welcomed everyone to the meeting. He began by providing a brief 

overview of the meeting agenda, advising that the first panel would provide an overview of the 

Economic Inclusion Summit. Next, the Chairman stated that FDIC staff would share results 

from new FDIC research into how to better measure neighborhood access to bank branches. The 

Chairman commented that FDIC household surveys indicate that roughly 28 percent of 

consumers with bank accounts continue to use branches as their primary way to access their 

accounts and for lower-income households and elderly households the reliance on bank branches 

is even greater. The Chairman explained that being able to assess the neighborhood’s access to 

bank branches will allow both banks and the public to better target resources to promote access 

to service. The Chairman stated that following lunch the FDIC Community Affairs staff would

discuss a number of regional collaborations that have promoted financial education, financial 

capability with youth, and access to banking services. The Chairman indicated that the final 

panel of the day would focus on the FDIC’s Affordable Mortgage Lending Guide and Online 

Center. The Chairman explained that the FDIC developed a three-part series that identifies key 

resources for community banks and housing organizations for information about affordable 

mortgage products and programs. He stated that the panel also would highlight the website the 

FDIC has developed to disseminate this information.
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The Chairman then introduced Jonathan Miller, Deputy Director, Division of Depositor 

and Consumer Protection (“DCP”), who would moderate the first panel on the FDIC’s Economic 

Inclusion Summit.

Mr. Miller began by welcoming everyone and indicated that the panel would first provide 

an overview of the Economic Inclusion Summit held the previous day. Mr. Miller reminded the 

Committee that they were provided a reference packet of materials concerning the Summit. Mr. 

Miller then introduced Member Barr to provide a brief summary of each of the presentations 

made at the Summit.

Member Barr began by indicating that the first panel focused on the role of research in 

designing new ways to help low- to moderate-income (“LMI”) communities. Member Barr 

reported that he discussed research that has been done on the vulnerability of communities, 

particularly in the wake of the financial crisis, but also given long-term changes in the structure 

of work and employment, many households are facing a good deal of income and expense 

volatility. Member Barr suggested four areas that warrant consideration, including the four Ps:

First, products. Focus on ways of developing safe and affordable products, with a renewed 

emphasis on generating a financial cushion for low-income households to weather income and 

expense volatility. Second, partnerships. Create partnerships with local organizations that deal 

with the range of problems facing LMI families. Third, protection. This includes the importance 

of keeping a strong and robust consumer financial protection agency as part of that package of 

protection to make sure LMI families are not exposed to abuse in the marketplace. Fourth, 

policy. Focus particularly on the big problem of consumer autonomy and giving consumers 

better ownership of their financial data and giving them a better ability to have control over that 

data, to port that data to other financial institutions, and to generate more competition in the 

marketplace for banking products, which should help drive down contingency fees and improve 

service.

Member Barr next reported that Keith Ernst from the FDIC presented data from the 

FDIC’s unbanked and underbanked survey. Member Barr commented that Mr. Ernst’s 

presentation highlighted data that described the extent of variation in banking status and 

outcomes based on geography, educational status, and income. Member Barr explained that the 

wide variation suggests that it will take more than one uniform strategy to solve the problem of 

the underserved. Member Barr stated that Mr. Ernst explained the findings from the mobile 

financial services research with a particular focus on the ways in which mobile financial services 

might overcome some of the key gaps that non-mobile services provide.

Member Barr then stated the next speaker was Fiona Greig. Ms. Greig is the Research 

Director at the JPMorgan Chase Institute, which is an independent research branch of JPMorgan 

Chase that has been doing work with data from 35 million account-holders at JPMorgan Chase. 

Member Barr explained that Ms. Greig’s work emphasized, in particular, income and expense 
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volatility, and the findings were striking. Ms. Greig’s work comprised of customers who are 

banked, who are predominantly middle-income, and who have an extensive range of 

relationships with JPMorgan Chase. Member Barr explained that these are not customers who 

are tangentially connected to the banking system, rather, they are in the wheelhouse of banking. 

He stated that these customers are suffering enormous amounts of income and expense volatility, 

and they do not have the savings cushion required to match their income and expense flows.

Member Barr then stated that the last speaker on the panel was Rachel Schneider, who is 

at the Center for Financial Services Innovation, (“CFSI”), and has been studying LMI families, 

along with Jonathan Morduch at NYU’s Wagner Graduate School of Public Service. CFSI is 

producing an in-depth household sociological study through financial diaries and recording the 

activity of LMI families on a regular basis. Member Barr stated that CFSI’s sociological study is 

able to show in detail the extent of the juggling going on in LMI families, given their income and 

expense volatility.

Mr. Miller then thanked Member Barr for his presentation and introduced Patience 

Singleton, the Acting Chief in the Policy Branch, DCP, to provide a summary of the panel on 

safe banking products.

Ms. Singleton began by mentioning that her panel was moderated by Denise Belser of the 

National League of Cities. Ms. Singleton stated that the panel focused on best practices 

regarding the design and delivery of products that work for customers, communities, and 

institutions. She reported that the panelists discussed innovative solutions to address problems 

facing underserved populations and individuals, solutions involving traditional financial literacy, 

coaching, creative partnerships, and the use of technology as ways to increase financial services 

access and financial stability. Ms. Singleton stated that the first panelist was Rani Boukerrou

with KeyBank. She explained that Mr. Boukerrou’s presentation centered on how banks’ efforts 

in meeting the needs of consumers actually transformed the culture of the bank such that the bank

became focused on the financial well-being of all of its customers, including the underserved. 

Ms. Singleton stated that Mr. Boukerrou went over the four C’s including cash, convenience, 

credit, and coaching. He explained that these were identified as the primary needs of banking 

clients by KeyBank, and he described the bank’s efforts to reach underbanked clients in each of 

these areas.

Ms. Singleton next explained that Mr. Boukerrou covered some of KeyBank’s products,

including their Financial Wellness Program and KeyBank Plus Program. The KeyBank Plus 

Program allows non-customers to cash checks at the institution. She reported that KeyBank has 

a hassle-free account, which is a deposit account with no monthly fees, no minimum balance, no 

overdraft fees, and a free debit card. Ms. Singleton reported that some of the other products 

discussed by Mr. Boukerrou were a Key Basic Credit Line, which is an unsecured revolving 

credit line that provides instant access to funds with credit limits of $200 to $5,000 with APRs of 
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17 to 24 percent. She next reported that Mr. Boukerrou explained KeyBank’s Financial Wellness 

Program.

Ms. Singleton reported that the second panelist was Margaret Libby from MyPath. She 

explained that MyPath is a national nonprofit focused on paving economic pathways for lowincome youth and is headquartered in San Francisco. Ms. Singleton explained that Ms. Libby’s 

presentation focused on the organization's initiatives to help youth transform and utilize their 

paychecks to help place them on the road to financial stability and mobility. The program mainly 

focuses on individuals that are 16 to 24 years old who are employed, but live in financial deserts,

places where there are not many opportunities for them to learn to manage their finances or have 

access to mainstream financial services. Ms. Singleton reported that Ms. Libby explained that 

similar to what KeyBank does, there is a MyPath technology application used to help the youth 

set goals and monitor their spending. The final component is the partnership. She indicated that 

partnerships are extremely important to the success of the program; the model involves local 

youth employment programs with MyPath being the center of the partnership along with various 

financial institutions and banks, which work closely with Self-Help, the credit union founded by 

Member Eakes. Ms. Libby reported that so far, 8,000 low-income working youth have received 

banking accounts, savings accounts, and are on the path of building credit.

Ms. Singleton stated that the last panelist was David Johnson of BankPlus, which is a 

bank in Mississippi. Ms. Singleton reported that Mr. Johnson discussed BankPlus’ small dollar 

loan alternative to payday lending developed in 2008 to help the underbanked and underserved 

individuals in Mississippi break the payday lending cycle and start a savings plan. Mr. Johnson 

indicated that payday lending is a huge problem with payday lenders basically on every corner in 

Mississippi. Mr. Johnson stated that BankPlus created a small-dollar, short-term, partiallysecured loan product that was designed to help individuals break the cycle. She stated that 

BankPlus charges 5 percent interest on the loan product. Ms. Singleton then summarized Mr. 

Johnson’s description of the various loan products his bank offers.

Ms. Singleton stated that the key takeaways from the panel were first, access itself is not 

enough. She indicated that access plus solutions for longer-term financial stability and wellbeing were important. In this way, Ms. Singleton explained, customers can set goals, learn how 

to engage, and build financial capabilities. Another takeaway, Ms. Singleton stated, is building 

products around customer needs and using research and input from the public to help shape 

products and services. Ms. Singleton stated that another takeaway is technology and explained 

that technology can be an important means of helping consumers set goals and control their 

finances. Another takeaway, she explained, is being prepared to adjust a program as it develops.

Mr. Miller thanked Ms. Singleton for her presentation. Mr. Miller then introduced David 

Friedman, Policy Analyst, DCP, to give a report on the Economic Inclusion Partnerships panel.
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Mr. Friedman began by stating that his panel focused on Economic Inclusion Partnerships 

that connect financial knowledge and financial services with workforce education, health, 

economic mobility, and other opportunities. Mr. Friedman reported that the panel was 

moderated by Jonathan Mintz, President and CEO of the Cities for Financial Empowerment Fund

(“CFE Fund”), and featured perspectives of panelists representing local, state, and federal 

government as well as banks. Mr. Friedman stated that the panel began with Mr. Mintz noting 

that the success of economic inclusion work depends fundamentally upon the vibrancy of 

partnerships, and pointed to the CFE Fund’s work with the FDIC to promote access to safe 

banking products as an example. Mr. Friedman stated that the overall discussion focused on 

lessons learned about the art of partnerships, best practices, and factors that go into partnering 

with different sectors.

Next, Mr. Friedman stated that Mary Dupont, Director of Financial Empowerment for the 

Delaware Department of Health and Social Services, described the unique role that government 

can play in reaching communities to expand personal financial well-being. Mr. Friedman stated 

that Ms. Dupont described Delaware’s Stand By Me Statewide Financial Empowerment 

Program, which is focused on financial coaching as well as access to products and services. Ms. 

Dupont also discussed Delaware's multi-sector public/private systems change approach to 

financial inclusion that leverages the support of employers, state agencies, K-to-12 educators, 

nonprofits, and higher education institutions.

Mr. Friedman reported that the next panel speaker was Tina Lentz, who is the Executive 

Administrator of the Advocacy and Empowerment Division of the Louisville Metro Government 

Department of Community Services. Mr. Friedman stated that Ms. Lentz noted the connection 

between household financial stability and neighborhood economic stability.

Mr. Friedman indicated that the next two speakers were Greg Housel, Community Affairs 

Specialist, DCP, and Jackie Loya-Torres, Community Development Officer, Commerce 

Bancshares. Mr. Friedman reported that they described ongoing work in Kansas City designed to 

build economic inclusion partnerships to address family stabilization, financial education, and 

economic mobility with the goal of banking the unbanked. Mr. Friedman stated that they

discussed the work of their Alliance for Economic Inclusion (“AEI”) and the Money Smart 

Kansas City Program, emphasizing that their work included partners across sectors: financial 

institutions; nonprofits; government; churches; schools; employers; and re-entry programs, 

among others. Finally, Mr. Friedman stated that they described the collaborative effort involving 

131 partners to create a resource database to connect people to the range of services that are 

available across sectors in Kansas City and to forge new partnerships.

Mr. Friedman stated that first and foremost, panelists noted that partnerships are the key 

way to reach new populations to provide economic inclusion services. In this way, Mr. Friedman 

reported that finding trusted organizations already working with a population is the best practice 

and the easiest way to provide economic inclusion services to a range of populations. Mr. 
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Friedman also pointed out that for partnerships to work, it is important that there be a common 

thread that resonates with stakeholders, that is, strategic goals that present a win/win for both 

organizations.

Mr. Friedman reported that another lesson from the panel was that partnerships are not 

“one-size-fits-all” and that partnering with government, private sector, community-based 

organizations, and banks, each has their own unique aspects to consider. The next lesson with 

partnerships is that communication is important and building relationships takes time. Lastly, 

Mr. Friedman stated that not all partnerships will work as planned and it is important to know

when to end partnerships that are not working.

Mr. Miller then introduced Laura Lawrence, Senior Community Affairs Specialist, DCP, 

to give a report on the fourth panel, sustaining customer relationships.

Ms. Lawrence stated that the moderator for the panel was Daniel Dodd-Ramirez, the 

Assistant Director of the Office of Financial Empowerment, Consumer Financial Protection 

Bureau. Ms. Lawrence stated that the panelists were Katy Davis, Managing Director of Ideas42; 

Leigh Phillips, CEO of EARN; and, Janet Gordon, Associate Director of Community Affairs, 

DCP.

Ms. Lawrence stated that Mr. Dodd-Ramirez began by pointing out that people who were 

banked, but now unbanked, are that way because they believe they do not have enough money so 

do not bother with a bank. Mr. Dodd-Ramirez stated that the unbanked also distrust banks. He

stated that customers want faster access to funds, mobile services, and access to their account 

balances in real time and indicated that customers go to alternative service providers because 

they are perceived to be more convenient.

Ms. Lawrence indicated Ms. Davis spoke about Ideas42, which takes behavioral insights 

to design solutions to everyday issues, including financial issues. Ms. Davis emphasized the 

importance of product design in encouraging productive financial action.

Ms. Lawrence reported that Ms. Gordon discussed how the FDIC community affairs team 

facilitates partnerships through Money Smart, which is a free financial educational product. Ms. 

Lawrence next stated that Ms. Gordon covered the FDIC’s five opportunities that reflect the 

progression for economic inclusion: financial education at the core, opening insured bank 

deposits, credit and savings, affordable mortgages, and entrepreneurship.

Ms. Lawrence next reported that Ms. Phillips provided background about EARN and then 

reminded everyone that roughly half the country’s population does not have an extra $500 to 

cover an unexpected expense. To address this issue, Ms. Phillips reported that EARN’s 

technology-based solution helps families save. If the customer saves $20 a month, EARN 

rewards them with $10 a month. Ms. Lawrence stated that Ms. Phillips pointed out that saving 
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money is transformative; it provides people with lasting resilience, confidence not only in their 

financial knowledge, but in their lives as a whole.

Ms. Lawrence next provided a summary of the question and answer period, the main 

takeaways being: customer insights are a key facet in the design of products; diversity of 

partnerships is an important element; reach the customer; provide reliable customer service; and 

make them feel valued as a customer. Ms. Lawrence provided a summary of the session by 

stating to sustain customer relationships, banks need technology mediated by humans.

Mr. Miller thanked Ms. Lawrence for her report and next introduced Member Boston to 

provide a summary of the panel on growing customer relationships.

Member Boston stated that Lindsay Daniels from the National Council of La Raza, Jamie 

Armistead from Bank of the West, and Member McDonald were on the panel. Member Boston 

then provided a summary overview of each panelist’s presentation. Member Boston stated that 

Ms. Daniels shared her report on Banking in Color, which was joint research by the National 

Council of La Raza, the National Urban League, and the National Coalition for Asian-Pacific 

American Community Development.

Member Boston next reported that Mr. Armistead discussed digital engagement and how 

Bank of the West was able to increase the number of customers by having a very robust digital 

engagement program. Member Boston pointed out that it was somewhat surprising to learn that 

the branches and locations where African-Americans and Hispanics were located had a higher 

usage of mobile banking and even more revealing, they found their digital engagement was more 

profitable. Additionally, Member Boston reported that the digitally-engaged customers also had 

a lower customer attrition rate because they were using a mobile platform and it was harder to 

switch banks. He stated that those customers who were engaged digitally drove branch sales 

because they would come into the branch to request new services, and they had more bank 

services than those who are not digitally engaged. Member Boston stated that as a result, the 

bank is putting more resources into promoting digital channels.

Member Boston then invited Member McDonald to say a few words. Member McDonald

mentioned that the theme of the conference focused on partnerships. He mentioned that in 

growing the business in his institution, they had to implement technology in order to be costefficient and thus, they invested heavily in technology and partnerships. Another point Member 

McDonald made was that his institution was focused on helping customers not only with their 

financial wellness, but also their personal wellness. He said this means helping individuals deal 

with some of the other issues that they face in everyday life, such as eating healthy and 

maintaining a healthy lifestyle.
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Mr. Miller then thanked Members Boston and McDonald for their presentations and invited 

Mark Pearce, Director, DCP, to continue the presentation by providing a summary of the 

presentation concerning “looking forward to next steps.”

Mr. Pearce began by reporting that Members Annibale, Levere, and Murphy were on his 

panel -- the goal of which was to look forward to what steps can be taken next. Mr. Pearce stated 

that he would summarize some of the themes. First, he discussed the theme of trust, which he 

commented was commonly utilized during the previous panels. Next, Mr. Pearce discussed how 

an institution has a personality, a set of values or principles about how they do business, and how

they approach their communities. Mr. Pearce mentioned Member Annibale’s discussion about 

the role that technology plays. Next, Mr. Pearce summarized the panel discussion on the role of 

policy and regulation. Finally, Mr. Pearce stated that all three of the panelists talked about hope, 

and that there has been significant progress over the last ten years in promoting economic 

inclusion.

Mr. Miller thanked the panelists and the moderators for their presentations. The 

Chairman and Mr. Miller invited questions or comments from the Committee and there was an 

extended period of comments and observations from the Committee.

Chairman Gruenberg then thanked the various Members for their respective questions and

comments and the Committee took a midmorning break.

(Whereupon, the above-entitled matter went off the record at 10:53 a.m. and resumed at 11:09 

a.m.)

Chairman Gruenberg introduced Keith Ernst, Associate Director, Consumer Research, 

DCP, to moderate a panel on Neighborhood Access to Bank Branches.

Mr. Ernst began by stating that bank branch networks are changing. He stated that 

branches are opening and closing with regularity, perhaps more the latter in recent years than the 

former and the function and structure of bank branches are changing. Mr. Ernst indicated that 

there has been considerable attention devoted to the impact of these changes on access to bank 

services, particularly bank branch services.

Mr. Ernst then introduced Kristopher Rengert, Senior Consumer Researcher, DCP, to 

discuss how to evaluate neighborhood access to bank branches and particularly how to identify 

areas where concerns about branch access may be most pronounced.

Mr. Rengert began by stating the FDIC household surveys have documented the 

importance of bank branches to consumers, especially lower-income consumers. He stated that 

for many consumers, branches are the primary means through which they interact with their 

accounts. Furthermore, he stated that specific subgroups are even more likely to use bank 
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branches as their primary way to access accounts. For example, Mr. Rengert stated that for 

accountholders and families with incomes under $30,000, over 40 percent rely on bank branches; 

for accountholders with less than a high school diploma, over 50 percent depend on bank 

branches; for accountholders age 65 or older, nearly 50 percent rely on bank branches, and for 

accountholders residing outside of metropolitan areas or what we might consider rural by some 

definitions, over 40 percent depend on bank branches as their primary way to access their 

accounts.

Mr. Rengert reported that, at the same time, although recognizing that many consumers 

depend on bank branches, the number of bank branches has been declining since 2011, with just 

over 98,000 branches, to 2016, with nearly 92,000 branches, a loss of some 6,300 branches, or 

6.45 percent. He stated that this decline is not spread evenly across the United States; some areas 

and some neighborhoods are impacted more than others. Because of this, Mr. Rengert indicated 

that it is important to be able to accurately identify areas with low or limited access to bank 

branches. He stated that incorrectly identifying areas as lacking access can distract from where 

the real problems exist. Ultimately, Mr. Rengert reported, it is important to be able to accurately 

identify areas with limited access, ideally, pinpointing those that not only have lower access, but 

that are also populated by residents who are particularly reliant upon bank branches for accessing 

their accounts. Mr. Rengert indicated that the focus of his presentation is to discuss the strategy 

that has been developed to that end.

Mr. Rengert explained that a primary motivation behind the effort to develop a refined 

strategy for assessing neighborhood access to bank branches is to be able to more precisely 

identify neighborhoods with limited access. This, he further explained, is important for efforts to 

further economic inclusion and improve consumers’ access to bank accounts. Mr. Rengert stated 

that for many vulnerable populations, bank tellers are the preferred method for accessing 

accounts. Because of this, he explained, there is a particular interest in identifying specific types 

of areas, areas without access to bank branches, areas without bank branches, and areas 

vulnerable to losing bank branches, and, then, finally, intersecting those with areas with 

concentrations of vulnerable populations.

Mr. Rengert stated that strategies matter with limited resources. Mr. Rengert explained 

that census tracts are the basic data building-block tool for neighborhoods. He explained that a

radial determination of bank branch access for each census tract is used in its local context. Mr. 

Rengert further explained the strategy for using the local distribution of residents and bank 

branches to identify a locally-defined distance for the radial determination. He stated that rather 

than assuming that only consumers in the census tract where a bank branch is located can access 

that bank branch or imposing an arbitrary radial distance to associate bank branches with census 

tracts, data researchers can look at a metropolitan area and identify the distance just for that 

particular metropolitan area at which a particular percentage of consumers live from the closest 

bank branch to their census tract. He explained that generally, residents of very densely-settled 

areas might encounter bank branches closer to home than residents of more sparsely-populated 
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areas. Mr. Rengert said, for instance, New York City versus rural Arizona, there is going to be a 

different distance at which one might expect to encounter the closest bank branch.

Mr. Rengert explained that data researchers look at individual metropolitan areas and the 

census tracts within them and then calculate the distance from each census tract's populationweighted centroid. Then, he explained, data researchers rank-order the census tracts in that area 

from the shortest distance, the census tract with the closest bank branch to its centroid to the one 

with the longest distance, and the farthest from the closest bank branch. Mr. Rengert stated that 

looking at the cumulative population it is possible to identify the distance at which a given 

percentage, perhaps 75 percent or 90 percent, of that metropolitan area’s population lives from its 

closest census tract. He explained that distance is the “locally-determined distance threshold” 

(“LDT”). In this way, he stated that taking all of the census tracts in a metropolitan area, for 

instance, the Chicago metropolitan area, and rank-ordering them, the top row will be the census 

tract that has the closest bank branch to its centroid, and the last row will be the census tract that 

has the farthest bank branch. He explained that one of the columns is the population, the share of 

the population in each census tract. Mr. Rengert used the example of the Chicago metropolitan 

area and by identifying the distance at which 75 percent of the population is above that line, there 

is at least one bank branch within that distance. Using this analysis, he said, for Chicago,

seventy-five percent of the population of the central Chicago metropolitan area has at least one 

bank branch within .68 miles of its centroid. Mr. Rengert explained this analysis could be done 

for both metropolitan and micropolitan areas.

Mr. Rengert then used a series of slides to illustrate the application of the data analysis. 

Mr. Rengert specifically went through the LDT for the City of Chicago and answered several 

specific questions from the Committee on data interpretation.

Mr. Rengert next compared other strategies that have been used and are frequently used 

in the press and elsewhere. He explained that neighborhood access to bank branches is often 

discussed outside of the FDIC and the agency believes it is important to move the conversation 

towards more accurate and more reliable strategies for assessing neighborhood access to bank 

branches. Mr. Rengert stated that existing analytic strategies frequently focus on the census tract 

where the zip code and bank branch is located and identify tracts as having low access if there is

no branch within the tract. So, he explained, a tract with no branch in it does not have access to 

bank branches and those that have bank branches have access.

Mr. Rengert indicated that other strategies identify branches within a fixed radius of the 

center of the census tract. So, he explained, one radial measure is selected and then applied to 

the whole country or to multiple states. Mr. Rengert explained that this is an example of the 

branch-in-tract strategy, a strategy that looks at whether or not there is a branch in a census tract 

and determines the tract has access to a bank branch if there is one. Mr. Rengert stated that this 

method underestimates the population in the spatial area served by a bank branch, sometimes 

dramatically. He explained that the branch-in-tract method is an accurate representation of 
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whether or not there is a branch in an area, but it is not an accurate measure of whether there is 

access to bank branches in an area. This, Mr. Rengert stressed, is an important distinction.

Utilizing another slide, Mr. Rengert next explained that 20 percent of the population of 

the City of Chicago lives in a tract with lower access to bank branches, using LDT at the 75 

percent threshold. But, he stated, if someone was interested in focusing on particular populations 

for whom access to bank branches is particularly important, then that data could be overlaid on 

the census tracts that are also of LMI.

Mr. Rengert then went through several slides that illustrated the application of the data 

analysis to specific areas and scenarios.

Mr. Rengert explained that the use of the LDT enables better identification of census 

tracts or neighborhoods that may have limited access or may face negative impacts from having a 

branch closed. Mr. Rengert cautioned that it is essential to realize that not all communities with 

lower access to bank branches have a problem. He stressed that the LDT is a tool that allows the 

identification of areas with lower access and applies other data to identify the areas that are of 

particular interest. This, Mr. Rengert argued, is a significant improvement over existing 

strategies. He explained that the LDT method allows for a more finely-honed, a more 

sophisticated way of identifying branch access. But, he cautioned, it is important to remember 

that it is just a starting point.

Mr. Ernst asked Mr. Rengert to clarify why 75 percent LDT is used as opposed to another 

percent such as 50 or 60. Mr. Ernst acknowledged that the choice is important because where the 

analysis begins can define the parameters of the discussion (even though the number can be later 

adjusted). Mr. Rengert responded that the idea is to put forward a method that helps to better

understand which areas have relatively low access to bank branch services. Mr. Rengert 

explained that 50 percent would potentially represent the median and 75 percent and 90 percent 

LDTs more accurately identify areas that have relatively low access.

Mr. Ernst and Mr. Rengert then invited any comments or questions from the Committee. 

Several Committee Members complimented Mr. Rengert on his excellent work and commented 

that the new method was definitely an improvement over previous and/or existing methods of 

determining areas of underbanked/unbanked population.

Member McCoy asked whether the statistic was true that only 21 percent of consumers 

use ATMs. Mr. Ernst responded by clarifying that the 21 percent figure represents people using 

ATMs as the primary means for accessing their accounts.

Member McCoy next asked a question about applying LDT to very remote areas. 

Member McCoy explained that in certain very remote areas, an LDT of 15 miles would be almost

impossible given limited transportation options. Mr. Rengert responded that with respect to rural 
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areas, it is a fact that the tool intuitively makes more sense to apply to more densely-populated, 

specifically metropolitan areas.

Member Murphy commented that almost every day his bank deals with branch 

authorization and location. In making the choice of a bank branch, Member Murphy explained, 

his institution looks at opportunity in the market, the distribution of client groups, and intensity. 

Intensity, Member Murphy explained, is how active, sophisticated, and informed the local 

community is about their needs. Member Murphy made the point that the LDT tool can be used 

as an overlap against the tools used today. So, Member Murphy explained, the tools being used 

today may better inform this model.

Mr. Ernst commented that with respect to communities with low or no access, the LDT 

tool does not evaluate the viability or the economic feasibility of a branch in that location. 

Rather, Mr. Ernst stated, the tool addresses whether the community has relatively low access.

Member Annibale recommended that the FDIC take the data analysis and work with the 

Office of the Comptroller of the Currency (“OCC”) so that hopefully the same analysis can be 

performed with the larger banks.

Chairman Gruenberg thanked everyone for the helpful conversation, comments and 

suggestions. The Chairman commented that the issue was an important one and highly relevant 

to the issue of inclusion and access to the system.

The Committee then took a break for lunch.

(Whereupon, the above-entitled matter went off the record at 12:07 p.m. and resumed at 1:23 

p.m.)

The Chairman welcomed everyone back from lunch and introduced Eloy Villafranca, 

Dallas Regional Community Affairs Manager, DCP, to moderate a presentation on Building 

Economic Inclusion Collaborations for Underserved Communities.

Mr. Villafranca began by introducing the speakers including: Angelisa Harris, Chicago 

Regional Community Affairs Manager, DCP; Emerson Hall, San Francisco Regional Community 

Affairs Manager, DCP; and Clinton Vaughn, Memphis Regional Community Affairs Manager, 

DCP. Mr. Villafranca stated that each panelist would be sharing information on a specific 

activity or set of events held in their region. Mr. Villafranca stated that the work in the 

Community Affairs Branch focuses on an economic inclusion ladder. He explained that 

beginning as a ladder from the bottom rung is financial education. Mr. Villafranca stated that the 

idea is to support quality programs to build financial capability and develop educational 

resources responsive to the needs of LMI individuals, such as emerging small businesses, diverse 

households, and communities. He stated that one major product is the Money Smart Program,
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which was started in 2001 and continues to evolve. Mr. Villafranca also stated that his section 

promotes access to ensure accounts in the use of safe, affordable, insured deposit accounts such 

as those consistent with the FDIC Safe Account Template.

Mr. Villafranca stated that one area of focus is to improve household financial stability 

and resilience by encouraging safe and affordable savings and credit solutions from insured 

depository institutions and access by underserved consumers. Mr. Villafranca indicated that his

section works with the Small Business Association (“SBA”) and others to encourage depository 

institutions to prudently serve the financial needs of emerging entrepreneurs and small 

businesses.

Mr. Villafranca reported that the other areas of importance are the Community 

Reinvestment Act (“CRA”) and community development and in that regard, the FDIC put 

together a coalition in Dallas called the Dallas Financial Inclusion Roundtable. This coalition, he 

said, was formed 18 months ago with the FDIC, the United Way of Metropolitan Dallas, and the 

Federal Reserve Bank of Dallas. The purpose of the coalition he stated was to make a

partnership where all of these partners can work together on the economic inclusion ladder.

Mr. Villafranca then introduced Ms. Harris to talk about her experiences with the 

initiative.

Ms. Harris began by stating that her goal was to provide a snapshot of FDIC frontline 

experiences and collaborations that exemplify the impact of two economic inclusion strategies 

that have been employed in communities that have struggled with disinvestment, unemployment, 

and significant underbanked populations of color. She indicated that these communities include 

Milwaukee, Wisconsin, southeast Michigan, and Gary, Indiana.

Ms. Harris discussed the first example, which is focused on the FDIC AEI coalition’s 

work on building creditworthiness in underserved communities. She stated that this effort 

supports the FDIC’s Economic Inclusion Strategic Plan to improve the financial stability and 

resilience of LMI consumers. Ms. Harris reminded that the FDIC leads the AEI in a number of 

markets across the country. Ms. Harris stated that the AEI is charged with expanding basic retail 

financial services for underserved populations, including safe and affordable insured accounts, 

small-dollar loan programs, targeted financial education programs, alternative delivery channels, 

and other asset-building programs. Ms. Harris stated that there are two coalitions in the Chicago 

Region, one based in Milwaukee, Wisconsin, and the other in the four-county area of southeast 

Michigan. Through the AEI, she explained, leadership is provided to facilitate partnerships 

among nonprofits, financial institutions, and community leaders. Ms. Harris stated that these 

partners collaborate to implement strategies, mobilize resources to strengthen communities, build 

a more inclusive banking system, and address persistent challenges on a local level. She 

explained that several years ago, both coalitions explored the issue of consumer creditworthiness 

and its impact on the ability of the underbanked to access safe and affordable financial products. 
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Ms. Harris stated that this was done through a number of focused discussions and knowledge 

exchanges to better understand consumer, financial, and market dynamics. Ms. Harris reported 

that the need for credit counseling, financial education, stronger referral networks, and 

identification of bank products to help build credit emerged as the most pressing issues 

confronting many underbanked households, the service organizations working with them, and the 

financial institutions trying to meet their credit and service needs. She explained that the 

consensus was that building consumer credit scores and knowledge is a fundamental pillar to the 

successful implementation of any asset-building initiative and efforts to increase access to bank 

products.

Ms. Harris provided a detailed overview of the work performed with the Milwaukee AEI. 

As a result of the work, she reported that local stakeholders have the ability to replicate 

promising practices, promote access to responsible financial products, and work with banks to

collaborate on products and services that support the needs of consumers with low, poor, or no 

credit histories.

Ms. Harris highlighted the importance of the referral networks. In this way, she stated 

that it is important that consumers are linked to both bank accounts and the supportive services 

needed for sustainable financial resilience, and this is what the AEI coalitions accomplish. Ms. 

Harris next discussed how the community development work intersects with economic inclusion 

strategies to promote access to banking services and insured deposit accounts. She pointed out 

that one of the earlier panels highlighted the reliance of LMI communities on access to bank 

branches for financial services. To illustrate, Ms. Harris provided a detailed example from the 

Gary, Indiana region.

In concluding the discussion, Ms. Harris pointed out that community development, like 

any financial stability effort, is not a “one-and-done” activity; rather it is a series of actions and 

programs that take time, a committed focus, and a collaborative effort to see tangible results.

Ms. Harris then turned the presentation over to Mr. Hall.

Mr. Hall reported on his work with a project in Los Angeles involving Money Smart for 

young adults. The Housing Authority of the City of Los Angeles contacted the FDIC because of 

the work that has been done in Los Angeles, and asked for a meeting. They wanted to adopt the 

Money Smart for young adults into their Summer Jobs Program. Mr. Hall stated that in the 

summer of 2014, his group set up six training sessions called Money Smart for Young Adult 

workshops. He stated that in that program, they trained 160 persons in the train-the-trainer 

workshops. Working off of that, Mr. Hall stated they provided the same type of training for the 

Economic Workforce Development Department and the Housing Authority in Los Angeles in the 

summer of 2015. Mr. Hall reported that over the three-year period 2014, 2015, and 2016, over 

380 people attended the training. This training, Mr. Hall said, was able to be multiplied and, 
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according to the City of Los Angeles, over 37,000, at-risk low-income youth were provided 

financial literacy and financial training. The end result, Mr. Hall reported, was a success.

Mr. Hall then provided a second example concerning the Sacramento Promise Zone. He 

stated that the Sacramento Promise Zone was a designation awarded in 2015 to spur job creation, 

increase economic activity in the area, and also promote neighborhood revitalization. Mr. Hall 

stated that the unemployment in the Sacramento Promise Zone is at 19 percent, which is

significantly higher than the average rate for Sacramento of 5.3 percent. Mr. Hall stated that in 

2016, the FDIC, another regulatory agency, and the Sacramento Housing Redevelopment 

Organization held a Promise Zone Forum to encourage job creation and assistance for small 

businesses. Mr. Hall reported that 11 financial institutions participated in the forum. After 

several meetings and 37 proposals, four of the 11 banks provided a grant to a nonprofit 

organization that is funding a project in the Sacramento Promise Zone, which is going to help 60 

high school juniors and seniors learn more about the solar industry and get career jobs. This, Mr. 

Hall stated, was another success.

Mr. Hall then introduced Mr. Vaughn to continue the presentation.

Mr. Vaughn provided an overview of his experience with CDFIs and the Memphis CDFI 

Network.

Mr. Villafranca then opened the discussion up to the Committee for any comments or 

questions.

Member Boston complimented the presenters and commented that in his opinion, the 

group was one way that the FDIC is able to make a positive impact in the community. Several 

other Committee Members agreed and echoed Member Boston’s comment.

Member Eakes asked whether workforce development has had success bringing in new 

business or having people start on their own or perhaps both. Ms. Harris answered that it was.

Mr. Villafranca further responded that the FDIC has a national agreement with the SBA 

to be able to work throughout the nation to bring in people that are entrepreneurs or brand-new 

businesses. Ms. Harris commented that one of the things the FDIC does well is convene 

stakeholders around certain issues.

Member Barr commented that he was deeply moved by the work being done and felt that 

it was quite extraordinary. Member Barr asked how much interaction there is with other parts of 

the FDIC. For example, Member Barr cited bank examiners and asked how much tension or 

cooperation there is between work being done by Community Affairs staff and bank supervision. 

Mr. Hall responded that there is a thread that starts at the top and runs through the FDIC that 

economic inclusion is very important. Mr. Hall explained that the Regional Directors and 
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Deputy Regional Directors have conversations with headquarters in regards to the work being 

done. In this way, the goal of economic inclusion is spread throughout the agency, not just in the 

Community Affairs Branch or Policy and Research Branch. So, he explained, the emphasis on 

economic inclusion is from the top down and reaches every part of the agency.

Mr. Villafranca agreed with Mr. Hall and emphasized that each Division of the FDIC 

works together as a whole to advance the core mission and values of the agency, with economic 

inclusion being one of the primary missions.

Chairman Gruenberg thanked the presenters and the Committee Members for their 

comments, questions, and observations.

The Committee then took a mid-afternoon break.

(Whereupon, the above-entitled matter went off the record at 2:30 p.m. and resumed at 2:38 

p.m.)

The Chairman welcomed everyone back and introduced Leslie Powell Evans, Chief, 

Community Affairs, DCP, to moderate the panel on Accessing Resources for Affordable 

Mortgage Lending.

Ms. Evans began by stating that providing technical assistance and information to banks 

is a key part of the FDIC’s Economic Inclusion Strategic Plan. Ms. Evans stated there are five

economic inclusion opportunities and her panel will address the opportunity for community 

banks in providing mortgage credit. She stated that this economic inclusion opportunity is to 

encourage insured depository institutions to make available prudently-underwritten, affordable, 

and responsible mortgage credit for LMI households.

Ms. Evans indicated that mortgage lending is an important element of many community 

banks’ business strategies. She stated that community banks offer mortgage products and 

services designed to meet the particular needs of their communities, including rural areas and 

LMI borrowers. Ms. Evans reminded that offering affordable mortgage lending to a wide range 

of customers broadens bank/customer relationships and demonstrates the institution’s interest in 

helping customers build financial success.

Ms. Evans reported that the FDIC met with banks across the country individually and in 

small roundtables to determine how the agency could contribute to the efforts by banks to offer 

affordable and responsible mortgage credit for LMI households in underserved areas. She stated 

that the bankers yielded valuable insights into the needs for affordable mortgage credit in the 

communities they serve and also discussed the opportunities and obstacles in using federal and 

state lending programs, as well as the pros and cons of holding loans in a portfolio versus selling 

loans on the secondary market.
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Ms. Evans stated that banks described how they use federal programs, sometimes in 

combination with other federal programs, such as the Federal Home Loan Bank, and other state 

programs to expand capacity and to serve a broader consumer base. She reported that very small 

banks do not have the specialized staffing or departments to offer complex mortgage products 

and services, and feel that the risks and the costs of origination are not worth taking without more 

resources or additional risk mitigation. Further, she said, some banks reported that while they 

wanted to be involved in mortgage lending, it is difficult to find the time to do the research of 

potential programs, and it is challenging, also, to find and retain trained mortgage staff, 

particularly in rural areas. Ms. Evans stated that from these meetings, it was concluded that 

community banks could benefit from more information in order to compare mortgage products 

and services, so that they could make an informed decision about which programs are the right fit 

for their business plans and strategies, in order to improve lending options for their communities.

Ms. Evans stated that in response to requests for information from bankers on affordable 

mortgage lending credit that is centralized and easy-to-understand, the FDIC created the 

Affordable Mortgage Lending Guide and the Affordable Mortgage Lending Center, which is a 

webpage designed to compare a variety of current affordable mortgage programs and to identify 

the next steps to expand or initiate affordable housing lending. She stated that the Center hosts 

the Affordable Mortgage Lending Guide, which is a three-part series of publications: Part 1 

provides information on federal agencies – the Department of Housing and Urban Development 

(“HUD”), Federal Housing Administration, Department of Agriculture (“USDA”), Department 

of Veterans Affairs (“VA”), and the government-sponsored enterprises, Fannie Mae and Freddie 

Mac; Part 2 focuses on state housing finance agencies; and Part 3 describes the products and 

services offered by Federal Home Loan Banks. She stated that essentially, the guide is a 

technical assistance resource that provides an overview of a variety of programs. Ms. Evans 

explained that the guide compares the different programs and helps identify the next steps for 

community banks to provide program participation.

Ms. Evans explained that the programs discussed in the guide can provide pathways for 

creditworthy borrowers who face barriers to homeownership, particularly affordability 

challenges. They represent business opportunities for community banks looking for responsible, 

sustainable financial products to add to their lines of credit. Ms. Evans stated that the panel will 

walk through the new resource tool and discuss outreach and potential impact.

Ms. Evans then introduced the panel, Sandra Kerr, Senior Community Affairs Specialist,

DCP, Teresa Perez, Kansas City Regional Community Affairs Manager, DCP, and Ron Haynie, 

Senior Vice President, Mortgage Finance Policy, and Executive Vice President, Mortgage 

Services, Independent Community Bankers of America. Ms. Evans then turned the presentation 

over to Ms. Kerr.
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Ms. Kerr then provided an overview of the Affordable Mortgage Lending Center on the 

FDIC’s website. By way of background, she indicated that the guide and webpage were launched

on September 15, 2016. Since then, she said, there have been on average 146 subscribers to the 

webpage every single week. Ms. Evans stated that currently, there are over 4,500 subscribers and 

38,000 page views of the Affordable Mortgage Lending Center from 12,500 individuals. 

Further, she said, sections of the guide have been downloaded more than 6,000 times.

Ms. Kerr provided the Committee with a detailed walkthrough of the website, including a 

description of the various content and features. Using an overhead projector, Ms. Kerr pointed 

out and illustrated the content and features on the site. Several Committee Members commented 

favorably and complimented Ms. Kerr on the site.

Ms. Kerr then introduced Mr. Haynie to continue with the presentation.

Mr. Haynie began by complimenting Ms. Kerr and her team for putting the resource 

together. He stated that his wife works at a community bank as an underwriter and really enjoys 

the resource. Mr. Haynie commented that many community banks run lean and because of that 

the resource is highly valuable in aiding these banks that might not have the resources of the 

large institutions.

Mr. Haynie further commented that for community banks to remain competitive, 

resources like the one put out by the FDIC will be essential in order to survive. The bottom line, 

Mr. Haynie stated, is that the resource better helps community banks serve their customers, 

especially in smaller towns and communities. Mr. Haynie stated that on a basic level, helping 

customers buy homes can be the bedrock of smaller communities and serve to make solid, long 

term bank customers.

Ms. Evans thanked Mr. Haynie for his comments and observations. She then introduced 

Ms. Perez to comment on the community affairs work in promoting the Affordable Mortgage 

Lending Center specifically and access to affordable mortgage credit more broadly.

Ms. Perez stated that throughout the FDIC's six regional and two area offices, Community 

Affairs staff has successfully engaged with community banks and other stakeholders focused on 

access to affordable mortgage lending credit. Ms. Perez reported that she would share examples 

from four of the FDIC’s regions.

Ms. Perez stated that first, the Chicago Regional Office held a full-day workshop on 

October 12th in Dearborn, Michigan, at which FDIC local and national Community Affairs staff 

led an interagency-sponsored single-family mortgage credit workshop designed to help provide 

affordable mortgage and refinancing solutions for LMI and other underserved consumers. She 

reported that the session highlighted effective ways for banks to make prudently-underwritten 

and sustainable mortgage loans and identified opportunities to form partnerships designed to help 
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increase access to affordable mortgage credit. Ms. Perez commented that 90 participants 

including banks, nonprofits, and others interested in mortgage lending attended across the State. 

Ms. Perez indicated that feedback received reported that respondents felt strongly that the 

workshop improved their understanding of the various mortgage credit programs discussed and 

increased their knowledge relative to helping consumers access affordable mortgage credit.

Ms. Perez next reported that on April 6, the New York Regional Office cosponsored an 

interagency single-family mortgage credit workshop, which featured the announcement of the 

release of part 3 of the Affordable Mortgage Lending Guide, which provides in-depth 

descriptions for each of the Federal Home Loan Banks’ products and services nationwide. She 

stated that there was high-quality participation from the other cosponsors – the Federal Home 

Loan Bank of Atlanta, the Federal Reserve Bank of Richmond, and the OCC. Additionally, she 

said, the Federal Home Loan Bank of Des Moines also was in attendance for the announcement

and 65 participants were in attendance. In addition, Ms. Perez said there was great participation 

from the audience and immediate unsolicited feedback provided by some attendees who 

expressed appreciation for this workshop.

Ms. Perez then stated that the Kansas City Regional Office cosponsored an interagency 

roundtable on April 19 titled Expanding Affordable Mortgage Credit in Housing in Rural 

Communities in Kansas City, Missouri. She indicated that this event focused on increasing 

awareness of safe and responsible mortgage lending products and services available in rural 

communities and helping bankers identify opportunities to form partnerships designed to increase 

access to affordable mortgage credit. Ms. Perez reported that a total of 47 participants attended 

the event, the vast majority being community bankers from towns with a population of 2,500 or 

less. Ms. Perez stated that feedback received from two attendees was that the guide was the best 

technical publication they had ever received from a regulatory agency.

Finally, Ms. Perez reported that next week the Atlanta Regional Office is cosponsoring an 

interagency CRA community development forum designed to present bankers with information 

about the Savannah Affordable Housing Fund and existing opportunities and needs for affordable 

housing in Chatham County. She stated that it will provide bankers with opportunities to 

network with community-based organizations and the City of Savannah Housing Department to 

implement affordable housing initiatives. Ms. Perez indicated that four goals have been 

established for this event: (1) to have at least one representative from each bank operating in the 

Savannah area attend the forum; (2) to have one representative from each nonprofit in the 

Savannah area focusing on affordable housing attend the forum; (3) to expose bankers to the 

Fund and affordable housing opportunities in the Savannah area; and (4) to encourage bankers to 

work in partnership with nonprofits and the City of Savannah Housing Department to 

successfully implement affordable housing initiatives.

Ms. Perez pointed out that Community Affairs staff promote access to affordable 

mortgage credit through other varied opportunities, such as through the submission of news 
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articles, and participation in statewide housing events as a speaker, workshop convener, meeting 

attendee, or exhibitor. Ms. Perez reported that Community Affairs staff has submitted articles in 

the DCP regional newsletters that are distributed to FDIC-supervised banks regarding the 

Affording Mortgage Lending Guide and Center and these newsletters exist in each of the six 

FDIC regional offices. Additionally, Ms. Perez stated, Community Affairs staff will serve as an 

exhibitor at the Pennsylvania Housing Finance Agency’s Annual Conference that will draw in 

excess of 700 participants, of which at least a third are bank representatives. Ms. Perez 

commented that on an ongoing basis, Community Affairs staff promotes access to affordable 

mortgage credit through regional participation in meetings convened by other stakeholder 

organizations across the country.

Ms. Perez concluded by stating that Community Affairs staff have worked in partnership 

with the other federal and state financial institution regulatory agencies and other federal and 

local partners, such as the Federal Home Loan Banks, HUD, VA, and USDA, to help promote 

access to affordable mortgage lending credit. She stated that this outreach is integral to 

supporting the FDIC and DCP missions and goals as well as addressing the goals and strategies 

outlined in the FDIC’s Economic Inclusion Strategic Plan.

Ms. Evans thanked Ms. Perez and the other panelists for their presentations. She then 

invited any comments or questions from the Committee.

Following the open discussion period with the Committee, Ms. Evans posed several 

questions to the Committee, including the following: What other resources might the FDIC 

provide community bankers regarding mortgage lending? Besides the three publications that

focus on single-family home purchase, are there other topics that would be of value that the FDIC

should explore? Ms. Perez next asked if there might be ways the FDIC could strengthen 

outreach efforts to better serve community banks. And, finally, Ms. Perez asked if there are 

suggestions that the Committee might have on partnerships at the state or local level that could 

help leverage resources.

Member McCoy commented that as a law professor, last fall she held an affordable 

mortgage research conference at her law school, and her school is publishing papers about what 

features of affordable mortgages reduce default risk. She promised to forward them to Ms. Kerr

and stated that they will be coming out this summer and also will be online.

Member McCoy then asked that as it appears that the Center is banker-facing, it might 

also be effective to have versions focused on HUD housing counselors and borrowers, and a 

borrower-facing and/or counselor-facing resource.

Ms. Kerr stated that while the primary focus of the Center is to give community bankers 

information about the different programs, the Guide has been shared widely with nonprofits and 

housing counselors. Ms. Kerr stated that she feels that this is a good way for housing counselors 
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and nonprofits to learn what bankers need to know. So, Ms. Kerr stated that she feels it is a very 

good training tool for housing counselors and nonprofits as well. 

Member Boston asked if this could be another add-on to Money Smart. Ms. Kerr 

responded that Money Smart currently has a module on housing that they are looking at. Ms. 

Evans further responded that there is in process a project to update Money Smart. 

Member Eakes commented that mortgage lending is critical for the survival of 

community-based financial institutions. Member Eakes observed that for community banks from 

$25 million to a billion, it is impossible to survive without mortgage lines as part of the portfolio. 

In this way, Member Eakes observed, mortgage lending has been, and will continue to be, critical 

to the health of community banking. 

Chairman Gruenberg thanked the presenters and the Committee Members for their 

comments and observations. The Chairman commented that, on the small business side, the 

FDIC is undertaking a national survey of small business lending to get a better insight into the 

access to credit for small business and that will be part of the agenda for the next meeting. 

Chairman Gruenberg then brought the meeting to a close.

There being no further business, the meeting was adjourned at 3:33 p.m. 

(Whereupon, the above-entitled matter went off the record at 3:33 p.m.) 

_____________________________ 

Robert E. Feldman 

Executive Secretary 

Federal Deposit Insurance Corporation 

And Committee Management Officer 

FDIC Advisory Committee on Economic Inclusion 

s/Robert E. Feldman
Minutes

of

The Meeting of the FDIC Advisory Committee on Economic Inclusion 

of the

Federal Deposit Insurance Corporation 

Held in the Board Room 

Federal Deposit Insurance Corporation Building 

Washington, D.C. 

Open to Public Observation 

April 27, 2017 – 9:00 A.M.

I hereby certify that, to the best of my knowledge, the attached 

minutes are accurate and complete. 

________________________________ 

Martin J. Gruenberg 

Chairman 

Board of Directors 

Federal Deposit Insurance Corporation 

S/Martin J. Gruenberg