City of Los Angeles Responsible Banking Investment Monitoring Program For Commercial Banks

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1 City of Los Angeles Responsible Banking Investment Monitoring Program For Commercial Banks Commercial banks providing City banking business or seeking City banking business must complete and file this form no later than July 1 st of each year to the City Treasurer to comply with Section to Chapter 5.1 of the Los Angeles Administrative Code. BANK CONTACT INFORMATION: MUFG Union Bank, N.A. Name of Commercial Bank 445 South Figueora Street Los Angeles CA Street Address City State Zip Code Jay M. Goldstone, Managing Director Contract Person Name and Title jgoldstone@us.mufg.jp Telephone No. Address 1. Please provide the number of loans and the value of loans by census tracts for the following types of loans in an excel format as provided. a. Small Business Loans (gross revenue of $1 million or less) b. Home Mortgages c. Home Equity Loans * Please see Attachment 1. d. Community Development Loans e. Community Development Investments 2. Does your institution participate in the Los Angeles Mortgage Modification Program (LAMMP)? Yes If yes, please provide the number of mortgages and the value of the mortgages by census tract that have received assistance in an Excel format as provided. No X If no, please briefly explain: FHA and FDIC modification programs, as well as our own proprietary modification programs for our portfolio 3. Does your institution participate in any of the following CalHFA s Keep Your Home California Programs? Yes X No Unemployment Mortgage Assistance Program (UMA) Yes X No Mortgage Reinstatement Assistance Program (MRAP) Yes X No Principal Reduction Program (PRP) Yes X No Transition Assistance Program (TAP) Reporting Year: 2015 MUFG Union Bank participates in Freddie Mac, Fannie Mae, loans. MUFG Union Bank offers a loan modification program which includes principal forbearance. However, the bank does not participate in any principal forgiveness programs at this time. MUFG Union Bank has developed its own loan modification program that provides an equitable means for home owners to maintain home ownership and economic dignity. It is also important to note that of our home mortgage modifications, we have a low recidivism rate of those modified reentering delinquency or foreclosure. 1

2 If yes, please provide the number of mortgages and the value of the mortgages by census tract that have received assistance for each program in an excel format as provided. No If no, please briefly explain: 4. Does your institution participate in any of the following Making Home Affordable Programs? Yes No X Home Affordable Modification Program (HAMP) Yes No X Principal Reduction Alternative SM (PRA) Yes No X Second Lien Modification Program (2MP) Yes X No FHA Home Affordable Modification Program (FHA-HAMP) Yes No X USDA s Special Loan Servicing Yes No X Veteran s Affairs Home Affordable Modification (VA-HAMP) Yes No X Home Affordable Foreclosure Alternatives Program (HAFA) Yes No X Second Lien Modification Program for Federal Housing Administration Loans (FHA-2LP) Yes No X Home Affordable Refinance Program (HARP) Yes No X FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance) Yes X No Home Affordable Unemployment Program (UP) If yes, please provide the number of mortgages and the value of the mortgages by census tract that have received assistance for each program in an excel format as provided. No If no, please briefly explain: 5. In a separate attachment, please provide a list and briefly describe your firm s community investments and/or partnerships with the City and/or local non-profit organizations relating to job growth, affordable housing, home ownership, and foreclosure prevention within the City of Los Angeles. *Please see Attachment 2. 2

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4 Attachment 1 (Pages 5-19) City of Los Angeles Responsible Banking Investment Monitoring Program

5 Union Bank Small Business Loans 2015 ATTACHMENT 1 Censustrac Data Count of LoanAmount Sum of LoanAmount (Dollars in Thousands) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $25 5

6 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $2, $ $ $ $ $ $ $ $ $10 6

7 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $285 Grand Total 236 $13,951 7

8 Data Censustrac Count of LoanAmount Sum of LoanAmt (in thousands) $ $ $ $ $ $ $ $2, $1, $3, $ $ $ $ $ $ $1, $ $1, $ $ $ $1, $ $1, $ $1, $ $ $ $1, $ $ $8, $1, $ $5, $5, $5, $ $4, $8, $3, $3, $1, $ $1, $ $ $ $209 8

9 $ $1, $ $1, $ $3, $1, $ $5, $3, $ $ $4, $5, $16, $10, $3, $3, $1, $6, $2, $6, $ $4, $1, $1, $ $ $ $1, $ $ $ $1, $ $2, $2, $ $ $ $1, $ $ $ $ $ $ $ $ $ $ $ $ $ $195 9

10 $1, $ $2, $1, $ $ $ $7, $ $ $ $1, $ $ $3, $ $ $ $1, $9, $1, $4, $1, $4, $2, $3, $ $3, $2, $1, $1, $1, $1, $ $ $ $2, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $338 10

11 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $4, $2, $15, $33, $6, $4, $31, $19, $1, $2, $11, $503 11

12 $ $4, $2, $1, $ $4, $2, $2, $ $1, $3, $4, $3, $7, $2, $1, $ $ $1, $1, $3, $3, $2, $5, $6, $9, $5, $ $4, $ $ $ $ $1, $3, $8, $5, $2, $4, $3, $2, $2, $5, $4, $2, $1, $1, $1, $ $ $1, $2, $2, $ $8,130 12

13 $2, $ $6, $2, $3, $6, $2, $1, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $5, $1, $510 Grand Total 723 $606,993 13

14 Union Bank Home Equity Loans 2015 in Thousands Data Censustrac Count of LoanAmount LoanAmount (in thousands) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $1, $ $ $ $ $ $ $ $200 14

15 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $1, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $300 15

16 $ $ $ $ $ $ $ $ $ $ $ $ $2, $ $ $ $1, $ $ $ $ $ $ $ $ $1, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $60 16

17 $ $ $ $ $ $ $ $ $ $ $ $ $229 Grand Total 234 $44,033 17

18 Union Bank Community Development Loans 2015 CensusTract Data Count of ReportingAmount Sum of ReportingAmount (whole dollars) $1,750, $2,750, $490, $210, $3,490, $72, $922, $187, $137, $500, $250, $200, $6,239, $54, $834, $2,648, $33,782, $246, $1,500, $200, $75, $381, $3,420, $14,205, $688, $6,250, $93, $100, $150,000 Grand Total 34 $81,830,886 Whole Dollars 18

19 City of Los Angeles Community Development Investments as of FUNDED INVESTMENTS Data Dollars in Thousands Purpose Count of Funded Investments Sum of Funded Investments Affordable Housing 19 $111,442 Community Economic Development 1 $1,424 Small Business Development 7 $ Grand Total Funded 27 $ 113,770 UNFUNDED INVESTMENTS Data Dollars in Thousands Purpose Count of Unfunded Investments Sum of Unfunded Investments Affordable Housing 18 $80, Community Economic Development 2 $ Grand Total Unfunded, but committed to fund 20 $ 80,959 Grand Total Community Development Investments as of $194,729 Dollars are in Thousands Our Investments have created 2,850 low-income housing units and 23 jobs in City of Los Angeles. 19

20 Attachment 2 (Pages 21-23) City of Los Angeles Responsible Banking Investment Monitoring Program

21 ATTACHMENT 2 City of Los Angeles Responsible Banking Investment Monitoring Program for Commercial Banks Calendar Year 2015 MUFG Union Bank 5. In a separate attachment, please provide a list and briefly describe your firm s community investments and/or partnerships with the City and/or local non-profit organizations relating to job growth, affordable housing, home ownership, and foreclosure prevention within the City of Los Angeles. -- Partnerships with the City of Los Angeles Union Bank supports and is actively engaged with many of the initiatives led by Mayor Eric Garcetti: o o o o 10K Small Business Initiative Hire LA s Youth Program Los Angeles Annual Mayor s Small Business Awards This year, we will also be supporting the DART program (Domestic Violence Campaign), and the Immigration Project, specifically working with the LAUSD youth. Union Bank is an active member of the Financial Empowerment Initiative being led by Economic and Workforce Development Department of the City of Los Angeles. Union Bank provided financial education for youth participating in the Hire LA Youth program and established bank accounts for some of the youth. Union Bank is one of the founding members of the Bank On California initiative; and we have been present and active in the Bank On Los Angeles initiative since its inception in Under the Bank On Los Angeles program, Union Bank provides low-cost products for the unbanked such as the Access Account, this is a safe, low-cost account, designed for customers who may not have or need a traditional checking account. A unique alternative, it allows you easy access too many standard banking features. Union Bank continues to support and participate with the Alliance for Economic Inclusion (AEI) initiative in Los Angeles led by the Federal Deposit Insurance Corporation (FDCI). Union Bank is a strong partner of LAUSD (Los Angeles Unified School District) o In 2014, Union Bank opened two Student Run Branches in two High Schools in the City of Los Angeles Crenshaw and Lincoln Heights High Schools. This is part of the linked learning approach where students learn financial education and other leadership skills. The program provides real-world financial experience and education. Ongoing financial workshops are conducted at the branch by and for fellow students, parents and guardians of the students 21

22 o On November 21, 2013, Union Bank donated 10,000 financial literacy books What a Bank Can Do to the LAUSD Beyond the Bell Branch (BTB) after school program; an investment of $30,000. The books continue to be used as part of the ongoing BTB financial literacy program for more than 160,000 students in 670 LAUSD schools. Support of local non-profit organizations relating to job growth, affordable housing, home ownership, and foreclosure prevention within the City of Los Angeles. Union Bank provided 92 Foundation grants in the City of Los Angeles focusing services in the areas of community economic development and affordable housing. The dollar investment in these nonprofit organizations in 2015 was $1,168,000. In 2013, Union Bank set aside $350,000 annually for the next three years ( , total investment $1,050,000) to support nonprofit organizations providing Homeownership Counseling for first-time home buyers and foreclosure prevention and Technical Assistance for Small Business owners (including job growth) in the City of Los Angeles. Distribution of this investment was done through a RFP (Request for Proposal) process and the awardees were: Homeownership Counseling and Foreclosure Prevention West Angeles Community Development Corporation - $300,000 over three years Los Angeles Neighborhood Housing Services - $150,000 over three years Technical Assistance to Small Business Owners PACE (Pacific Asian Consortium in Employment) - $300,000 over three years Business Resource Group - $150,000 over three years Vermont Slauson EDC - $150,000 over three years Union Bank employee engagement in the City of Los Angeles In 2015, Union Bank employees have volunteered with approximately 159 nonprofit organizations in Los Angeles for a total of 5,601 volunteer hours. From this total 1,082 were used to provide financial literacy in partnership with schools, Junior Achievement, Operation Hope, Boys and Girls Clubs, Big Brothers and Big Sisters of Los Angeles, Chinatown Service Center, the UCLA Foundation, and other nonprofit organizations serving children, youth, adults, and families. Our Bank Officers and Executives are also very active serving on Boards of nonprofit organizations, providing leadership and strategic direction. In 2015, the total number of Board service hours was 20,319, which translate into over $3.2 million dollars of pro-bono service for 446 nonprofit organizations throughout California. For the City of Los Angeles, 47 officers served on 89 nonprofit organizations, representing 20% of all nonprofits served. 22

23 Community Development Financial Institution (CDFI) & Small Business Investment Corporations (SBIC) Partners in Los Angeles County Valley and Genesis are CDFI s - please see Attachment 2.1. Avante and SEAM are SBIC s - please see the Attachment 2.2 for CD-1 filings with the OCC describing these Public Welfare Investments (page 6) under regulation 12 CFR-Part 24. Avante Mezzanine Partners - $7,500,000 SEAM Fund II, L.P. - $5,000,000 Valley Economic Development Center - $1,000,000 Genesis LA Economic Growth Fund $750,000 Other Community Projects: Mural Project: The campaign by Los Angeles Mayor Eric Garcetti to honor the rich histories of that city s most important Great Streets is receiving staunch support from MUFG Union Bank. The bank is donating $30,000 to fund the painting of a series of three murals along Central Avenue, the backbone of Historic South Central area that will depict important contributions from that neighborhood to this country over the years. First Mural: In July of last year the first of the MUFG Union Bank-funded murals was unveiled, honoring the historic jazz scene in Los Angeles. It was painted on the outside wall of 9th District City Councilmember Curren D. Price, Jr. s office on Central Avenue and timed to coincide with the 19 th Annual Central Avenue Jazz Festival Second Mural: Work has also been completed on the second mural honoring American soldiers who have fought in five conflicts overseas. This mural was recently unveiled and is painted on the outside wall of the Veterans of Foreign Wars building Benjamin J. Bowie Post 228 at 5115 South Central Avenue. Established 92 years ago, the post lays claim to being the oldest this side of the Mississippi River. The work on the third mural has just begun and will highlight the children in the community in partnership with the Newton Police Division, PALS program and Council Curren Price s office. Councilman Gilbert Cedillo s Jazz Music Festival Series: Union Bank was the inaugural sponsor of the Councilmember s Community Summer Concert Series which began in July of 2014 bringing cultural enrichment to this predominantly LMI community. We continue to support the summer concerts which are provided at no cost to the community. 23

24 Attachment 2.1 (Pages 24) City of Los Angeles Responsible Banking Investment Monitoring Program

25 ATTACHMENT 2.1 Union Bank s Equity Equivalent (EQ2) loan program is offered by Union Bank s Corporate Social Responsibility Group. Equity Equivalent (EQ2) loans are unsecured, interest-only commercial lines of credit made to Community Development Financial Institutions (CDFIs). CDFIs are regulated, licensed and certified by the U.S. Department of Treasury and provide financial products and services to people and communities underserved by traditional financial institutions and operate in low-income communities across the country. EQ2 loans provide CDFIs capital, which allow them to better meet the needs of their markets by allowing them to engage in longer-term small business lending and business technical support in economically disadvantaged communities for the purposes of development and revitalization. Eligible Borrowers CDFI s Loan Amount $250,000 - $1,000,000 Term and Amortization 5 year initial term then renewable annually for 5 additional years for a final maturity of 10 years. Interest due quarterly with principal at maturity. Non - Revolving facility one year draw period.. Collateral Unsecured Interest Rate 2.00% % Loan Fee None Underwriting Financial Ratios Revenue Net Asset Loan Loss Reserve Secured Debt Liquidity EQ2 applicants must demonstrate a tangible social impact in the markets they serve by the programs provided. Additionally, applicants must have diversified and stable funding sources and is financially sound. 24

26 Attachment 2.2 (Pages 25-30) City of Los Angeles Responsible Banking Investment Monitoring Program

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33 Attachment 3 (Pages 32-35) City of Los Angeles Responsible Banking Investment Monitoring Program

34 ATTACHMENT 3 RESIDENTIAL LENDING City of Los Angeles RFP Data June

35 Overview of Union Bank and Residential Lending Union Bank has a long history of highly successful residential lending and servicing with a tradition of discipline and prudent underwriting. We are committed to responsible lending, community involvement and homeownership preservation. Union Bank brings multiple resources to meet the challenges in our communities. Our vision and values emphasize responsible banking practices across our entire enterprise by all employees. This commitment is demonstrated in our emphasis and record in Corporate Social Responsibility, particularly in volunteerism, and our strong foundation and diversity. We employ a high-touch/low caseload per employee in default management area to ensure customers experience the highest levels of customer service and attention to their concerns. 1 33

36 Summary of Residential Lending Activities The following information highlights just a few of the efforts we take in our Residential Lending area to assist our customers who reach out to us for assistance. SPOC - Union Bank is committed to provide excellent customer service to all bank consumers, and is cognizant of the economic conditions and other factors that specifically affect mortgage loan customers. The low volume, high customer contact environment that Union Bank operates in is enhanced by the implementation of the Single Point of Contact team. This team specifically provides customers who are experiencing a hardship condition or an imminent default a single relationship manager that can assist them by providing the following: 1) Options to avoid foreclosure (as enumerated on slide 3) 2) Assistance during the workout application process (e.g. education, follow-up, status updates, etc.) 3) A single resource the customer can leverage throughout this period of hardship 4) Outreach to severely delinquent customers The creation and development of this process within the mortgage servicing division speaks to Union Bank s commitment to servicing excellence. Customer Resolution We have a dedicated Customer Resolution department that is focused solely on monitoring, tracking, and responding to complaints from all sources to ensure timely and thorough responses. REO Union Bank is committed to acting in accordance with all federal, state and local laws, regulations, ordinances and orders in its disposition of REO properties. We manage the REO portfolio through a Broker Direct partnership using traditional retail channels. Mortgage Assistance Our Mortgage Assistance Program (MAP) provides alternatives to foreclosure by offering customers loss mitigation options when a hardship arises. 2 34

37 Summary of Residential Lending Activities As mentioned, Union Bank has a number of programs that provide our customers options when they are experiencing a hardship; we also ensure that we refer our customers to certified housing counseling agencies for additional assistance and support. Here are some of the programs we offer for customers who wish to retain their homes: Participation with CalHFA in the Keep Your Home California Program Refinancing Repayment Plan Payment Extension Loan Modification Interest rate reductions Loan term extensions Conversion to a fixed rate Escrow (Tax & Insurance) resolutions If the customer requests consideration for any of the above programs, Union Bank will suspend any foreclosure activity to ensure they have the opportunity to take advantage of these offerings, as permitted. 3 35