CRA Working Group June 14 th, 2018
Call Details CRA Working Group June 14 th, 2018 Event password: CRA2018 Conference line: 240-454-0879 Meeting number: 660 787 180 *Today s call will be recorded and made available for future playback.
Mission Collaborating Together Our Goal Be a resource for CRA professionals tapping into the Power of the Network A platform within TMC to discuss challenges and share insights with others who do the same tasks on a day to day basis Opportunity to connect through regular calls and in-person events
Thanks for joining us! Jen Peachman Vice President, Member Engagement Ashleigh Alexander Member Benefits Advocate
Lender Member Spotlight Rob Hironimus Vice President, CRA & Reverse Mortgage Sales Manager Fulton Mortgage
Lender Member Spotlight Fulton Financial Corporation & Fulton Mortgage Company
Who We Are Corporate Headquarters in Lancaster PA $20 Billion in Assets Six Affiliate Banks Market presence in Pennsylvania, Maryland, Delaware, New Jersey, Virginia and Washington D.C. Approximately 240 Bank Branches Approximately 100 Loan Officers
Performance Evaluation OCC Fulton Bank CRA Examination as of April 2015 Overall Rating: Satisfactory Lending Test: Low Satisfactory Investment Test: High Satisfactory Service Test: Low Satisfactory Currently in process of 2018 exam
FULTON FORWARD TM Fulton Forward helps build vibrant communities through gifts of time and dollars and through programs, products and services designed to foster affordable housing, drive economic development, and promote financial literacy and education in the neighborhoods we serve. Housing Assistance Community Impact Economic Development Financial Literacy We are committed to shaping our future across our entire footprint through efforts and partnerships that align with our company s values and expertise and make our communities better, one change at a time.
Strategic Action Developed an Action Plan for all business lines to focus more on CRA Hired CRA MLO s That focus on CRA Lending Hired Community Outreach Officers Partnered with ~ 50 Housing Agencies over lending footprint Financial Contributions and Event Engagement (FTHB classes, Tradeshows, etc.) Continued relationships with Federal Home Loan Banks Community Lending Programs Created a Portfolio CRA Mortgage Product Homebuyer Advantage Plus Promoted the Home Ready Product Conducted Realtor Lunch and Learns and FTHB seminars Created Business Line Committees by AA to focus on LMI lending Enrolled with Down Payment Resource to identify down payment/closing cost assistance programs
Fulton Bank Comparative CRA Lending Performance HMDA Lending Originations To LMI Individuals HMDA Lending Originations In LMI Geographies 40% 35% 30% 25% 20% 15% 10% 5% 0% 2015 2016 2017 Q1 2018 Market Peers FB Total 2015 2016 2017 Q1 2018 Market Peers FB Total *HELOC tracking began in January 1, 2018, therefore HELOCs are not included in prior year reporting
Questions
Contact Information Rob Hironimus, CRA Mortgage Sales Manager NMLS #: 144923 717.327.2609 Rhironimus@fultonmortgagecompany.com THANK YOU! Message and data rates may apply.
Preferred Partner Educational Spotlight Laird Nossuli CEO iemergent
CBC Mortgage CRA Opportunities Richard Ferguson President CBC Mortgage
Chenoa Fund by CBC Mortgage Agency
Chenoa Fund by CBC Mortgage Agency 1. Originator of 1 st and 2 nd mortgage paper 2. 1 st is an FHA or Conventional loan 3. 2 nd is a 10 to 30 year, paid monthly. 4. CBC Mortgage Agency strong counterparty.
Creation of CRA Note Exchange Direct Lending 1. Desire to create a secondary market low balance, low risk 2 nd paper. 2. Inviting other non-profits and Housing Agencies to participate, including Habitats for Humanity. 3. 500+ loans on Exchange and growing each month
What sets these loans apart? CRA-eligible based on borrower income and/or the census tract Follows the spirit of CRA with a focus on providing affordable housing to underserved populations leading to overall community revitalization Loans have never been sold before, unlike some loans that are sold between banks multiple times CBCMA s loans are 2nd mortgages, with a much lower overall balance in comparison to higher-dollar first mortgages, allowing a bank to obtain a much higher quantity of CRA-eligible loans for the same overall purchase price
Loan Characteristics 1. 671 average credit score 2. 100% purchase transactions 3. Loans performing at or better than FHA 1 st mortgage statistics 4. Average loan amount $8,000 5. Amortizations and Rates 1. 10 year 8% 2. 30 year 5% 3. 10 year 0%
Open Forum Submitted Questions via E-mail: 1) I know that one of our areas that we need help in is finding ways/activities that would count towards our service requirement. We do many philanthropy type activities, but very few of them count towards CRA. I would love to hear what other banks are doing to fulfill this requirement. 2) Who do you use for translation service if you outsource? Do asset or bank documentation need to be notarized / stamped if they are being sold?
Wrap Up We Want to Hear From You: What other preferred partners or industry experts would you like to hear from on upcoming calls? Shoot us an e-mail and let us know. Submit your specific questions for the next call to Ashleigh Alexander at aalexander@mtgcoop.com or Jen Peachman at jpeachman@mtgcoop.com.
Your TMC Contacts: Your Dedicated TMC Resources: Jennifer Peachman Vice President, Member Engagement jpeachman@mtgcoop.com Ashleigh Alexander Member Benefits Advocate aalexander@mtgcoop.com
Open Forum Questions? Thoughts? Ideas?