Poor CRA Records and Plans

Community Reinvestment Act

Community advocates are concerned about the Community Reinvestment Act records of both CIT Group and OneWest Bank and their proposed plan if a merger is approved. According to the limited data provided by the bank, it appears that OneWest bank is ranked near the bottom for its reinvestment activities as compared to its peer banks.

Also troubling:

  • While the statewide average for California is 30% of bank branches located in low and moderate income census tracts, only 15% of OneWest’s branches are located in these areas.
  • The majority of “small business” loans originated by OneWest Bank are given to businesses with revenue of over $1 million, leaving smaller businesses behind.
  • While CIT currently takes $14 billion in deposits via the Internet from throughout the country, it only reinvests these deposits back into its Salt Lake City assessment area, frustrating the purposes of the Community Reinvestment Act. It has no meaningful plans to reinvest Internet deposits back into communities where its Internet customers reside, and the latest CRA plan released by the banks suggests the banks will only reinvest their CIT Bank’s internet deposits in its LA assessment areas (as compared to reinvesting the deposits in the communities where it receives them).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s