Fair Lending I: Outline Successors in interest and foreclosure ("widows and orphans") Responsible Banking Ordinances Advocacy with FHA and FHFA (Fannie, Freddie) to keep homeowners in their homes thru REO and note sales to nonprofits DOJ settlements and their impact on borrowers and communities of color

Successors in Interest (“widows and orphans”) Advocates raise issue No communication Undue hurdles No simultaneous loan mod and assumption Federal advocacy – GSEs, HAMP, CFPB adopt new rules CRC/HERA Survey 55% Counselors – LEP, POC get worse outcomes 87% Counselors – widows and orphans problem persists CFPB enhancements proposed – COMMENT PERIOD OPEN AB244 (Eggman) amends HBOR – BILL INTRODUCED OneWest/CIT Group merger – HEARING IN LA FEBRUARY 26!

Responsible Banking Ordinances Like a local Community Reinvestment Act! San Diego, Los Angeles, Oakland, San Francisco have a version NCRC has a good model ordinance Key questions Do cities require all questions to be answered? Is there a public process where input can be given? Is it an ordinance or an RFP? Does City move its business based on responses? One good example – SF gets BofA to provide loan mod data by race!

FHFA and FHA advocacy DASP advocacy – ACCE, NCRC, CAP, etc – 1 pager CRC survey – 80 respondents Impact of REO investors? NEGATIVE (80%) Keeping homeowners in their homes? – NO (48%) How have investors changed neighborhood demographics? 42% - fewer long term residents 34% - less income diversity 31% - less racial and ethnic diversity Should banks get CRA credit for financing REO to Rental? NO (43%) Homebuyers losing to cash investors? “always” or “often” (70%) Impact on local realtors?– “Hurts my business” 66% (19/29) Impact on nonprofit housers? – We are outbid by cash investors (50%) More fair housing complaints due to LLCs, LLPs? YES (12%); Some (25%) Biggest Complaints – Eviction, not accepting §8, leases, fair housing

DOJ Settlements NMS Newer settlements – JPMorgan Chase, Citibank, Bank of America Settlements getting better Target Hardest Hit communities Encourage lending for affordable rental housing Support for housing counselors and legal services Outreach in §1632 languages Areas for advocacy Ensure this is value added, not just normal CRA activities (double dipping) Report loan mod data by race, ethnicity, census tract Ensure affordable housing reaches lowest income, hard to finance projects