tracking access to capital in philadelphia august 2017

Tracking Access to Capital in

Philadelphia

August 14, 2017

Responsible Banking Ordinances

Continued Inequities in Access to Capital in Philadelphia

A Natural Experiment Proves the Impact of CRA

Responsible Banking Ordinances

Access to Capital =

“The American Dream”

The City of Philadelphia as an

Informed Customer…

…Not as a Regulatory Body

Continued Inequities in Access to Capital in Philadelphia

Philadelphia Lending Activity ($B)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

Home Small Business

2007 2011

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

% 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

Denial Rate Ratio

0

0.5

1

1.5

2

2.5

Afr-Am/White Hisp/White LMI/MUI

2007 2011 2015

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%

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

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

A Natural Experiment Proves the Impact of CRA

Change in Lending Activity in Newly Ineligible Philadelphia CTs

Change in Lending Activity in Newly Ineligible Philadelphia CTs

Going Beyond 40 Years of CRA

Thank You!

Lee HuangSenior Vice President and Principal

Econsult Solutions, Inc.215.717.2777

huang@econsultsolutions.com@econsultsolutns

1435 Walnut Street, 4th FloorPhiladelphia, PA 19102