tracking access to capital in philadelphia august 2017
TRANSCRIPT
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Tracking Access to Capital in
Philadelphia
August 14, 2017
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Responsible Banking Ordinances
Continued Inequities in Access to Capital in Philadelphia
A Natural Experiment Proves the Impact of CRA
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Responsible Banking Ordinances
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Access to Capital =
“The American Dream”
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The City of Philadelphia as an
Informed Customer…
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…Not as a Regulatory Body
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Continued Inequities in Access to Capital in Philadelphia
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Philadelphia Lending Activity ($B)
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Home Small Business
2007 2011
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Philadelphia Lending Activity (#)
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
# Apps # Prime Loans # Denials
2007 2011
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% of Home Loans to Borrowers That Are…
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Afr-Am Hisp LMI
2007 2011 2015
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Denial Rate Ratio
0
0.5
1
1.5
2
2.5
Afr-Am/White Hisp/White LMI/MUI
2007 2011 2015
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Subprime Penetration in Philadelphia Neighborhoods (citywide avg: 6.5%)
Organization Main Ethnic GrpHH Income as % of Regional Avg
% Loans Subprime
APM Hispanic 24.5% 11.1%
HACE Hispanic 18.6% 16.2%
AWF Afr Amer 30.7% 26.1%
OARC Afr Amer 53.3% 15.9%
Project HOME Afr Amer 25.5% 20.7%
PEC Afr Amer 21.2% 6.8%
American St EZ Hispanic 28.3% 3.6%
North Central EZ Afr Amer 19.5% 9.8%
West Phila EZ Afr Amer 21.3% 18.2%
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Philadelphia vs. Other Cities – Home Loan Penetration
Minority vs. NonUpper/Mid vs.
Mod/Low
Baltimore 2.7 2.9
Philadelphia 2.3 6.6
Pittsburgh 3.0 1.7
New York 2.7 4.7
Charlotte 2.0 4.7
Washington DC 1.0 1.7
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Philadelphia vs. Other Cities – Denial Rate Ratio
Minority vs. NonUpper/Mid vs.
Mod/Low
Baltimore 1.7 1.9
Philadelphia 1.7 1.6
Pittsburgh 1.2 1.8
New York 1.3 2.1
Charlotte 1.7 1.9
Washington DC 2.0 2.3
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A Natural Experiment Proves the Impact of CRA
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Change in Lending Activity in Newly Ineligible Philadelphia CTs
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Change in Lending Activity in Newly Ineligible Philadelphia CTs
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Going Beyond 40 Years of CRA
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Thank You!
Lee HuangSenior Vice President and Principal
Econsult Solutions, Inc.215.717.2777
[email protected]@econsultsolutns
1435 Walnut Street, 4th FloorPhiladelphia, PA 19102