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.

Aaron Gornstein, longtime executive director of the Citizens Housing and Planning Association, was appointed yesterday by Governor Deval Patrick to head the state's Department of Housing and Community Development. Aaron has been at CHAPA for 23 years and been its executive director since 1990.

“Aaron’s experience on the front lines of advocating for affordable housing and community development is a welcome addition,” Governor Patrick said in a statement. “His leadership and experience will move forward our mission of strengthening neighborhoods and improving the quality of life of Massachusetts residents.”

MAHA and CHAPA have worked closely on many issues over the years, most recently on last year's successful initiative to protect the state's Chapter 40B law from repeal. CHAPA and MAHA also serve together on the steering committee of the Community Preservation Coalition and have worked worked together over many years to support various homeownership initiatives, including the SoftSecond mortgage program.

Aaron will start his new position in late January. Karen Wiener, CHAPA's deputy director, will be interim executive director while the board conducts a search for Aaron's successor.