tracking access to capital in philadelphia august 2017
TRANSCRIPT
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
[email protected]@econsultsolutns
1435 Walnut Street, 4th FloorPhiladelphia, PA 19102