11 THE NAFCU JOURNAL NOVEMBER–DECEMBER 2022 References 1. For banks, Main Street Loans are calculated as the sum of residential real estate loans, loans to individuals and small business loans. For credit unions, Main Street Loans are calculated as total loans minus the non-small business loan portion of total commercial loans. Credit unions do not report small business loans directly, therefore NAFCU applies the ratio of small business loans to commercial loans observed at community banks. Based on past NAFCU surveys of distribution of credit union commercial loan size, this is likely a conservative approach. 2. “LMI” refers to low-to-moderate income. LMI borrowers are those with incomes less than 80% of area median family income (AMFI). 3. “Minority Neighborhood” refers to a census tract in which the racial/ethnic minority share of the population is greater than or equal to 50%. 4. LMI census tracts are those with median family incomes less than 80% of AMFI. These results argue strongly for many of NAFCU’s legislative goals, such as allowing credit unions greater freedom to move into underserved areas and not subjecting them to the excessive and unjustified burdens of Community Reinvestment Act compliance. NAFCU will continue to impress upon public officials the unique features of credit unions and their distinctive record of providing affordable financial services to those policymakers’ constituents. Notes: (1) Data reflect shares of annual owner-occupied purchase + refinance loans originations. (2) "Banks" include mutual savings institutions. (3) See footnotes in text for definitions of LMI and Minority Neighborhoods. Sources: Home Mortgage Disclosure Act data (FFIEC, CFPB); NAFCU calculations Black Borrower % 2011 Credit Unions Banks 2021 12 10 8 6 4 2 0 Female Borrower % 24 22 20 18 16 Minority Neighborhood % 20 18 16 14 12 10 8 6 Hispanic Borrower % 2011 2021 12 10 8 6 4 2 0 LMI Borrower % 40 35 30 25 20 LMI Census Tract % 20 18 16 14 12 10 8 6
RkJQdWJsaXNoZXIy MTY1NDIzOQ==