One-Fifth of Banks Earn Top Community Rating
Fewer Credit Unions and No Mortgage Companies Receive Top Grade
In 2011, about one-fifth of Massachusetts banks received an "Outstanding" rating on their Community Reinvestment Act evaluations from federal and state regulators, according to a report issued today by the Dorchester-based Massachusetts Affordable Housing Alliance (MAHA). This percentage is in the same general range as the three preceding years but it remains dramatically lower than during the 2005-2007 period when over one-third of all CRA ratings were "Outstanding."
The report was prepared for MAHA by Jim Campen, Professor Emeritus of Economics at the University of Massachusetts at Boston.
MAHA's twenty-first annual report lists the CRA ratings assessed to all Massachusetts banks, credit unions, and mortgage companies and evaluates the performance of the four federal regulators and the Massachusetts Division of Banks in reviewing bank performance in meeting community needs. The report finds that only 6 of 87 (or 6.9%) state-chartered credit unions in Massachusetts have an "Outstanding" CRA rating.
State regulators now examine and provide "CRA-like" ratings for licensed mortgage companies in Massachusetts based on the passage of the landmark 2007 legislation, An Act Protecting and Preserving Homeownership. Thirty-five licensed mortgage lenders have now received ratings under the state's Mortgage Lender Community Investment (MLCI) regulation with none earning a rating of "Outstanding." Those rated to date include five of the top ten licensed mortgage lenders, and fifteen of the top 25. Thirty-two mortgage company lenders received a rating of "Satisfactory"; one lender received a rating of "High Satisfactory"; and two received a "Needs to Improve" rating.
Each of the ten largest Massachusetts banks have an "Outstanding" grade from state and federal regulators as their most recent rating.
MAHAMassachusetts Affordable Housing Alliance
1803 Dorchester Avenue
Dorchester, MA 02124
By email: firstname.lastname@example.org
By phone: 617-822-9100
By fax: 617-265-7503