Buffalo and Erie County, NY Lending Patterns 2010-2016
Prepared by NCRC Research 1
Population and HMDA reported lending for Erie County, NY in 2015
In this presentation all loans are home purchase loans to owner occupied, single family and manufactured homes with a first lien, as is the practice with the Federal Reserve’s annual HMDA report.
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Population and HMDA reported lending for Erie County, NY in 2015 Ethnicity and Race White Black Hispanic/Latino Asian
Population 714,156 119,916 41,731 23,621
Percent 78% 13% 5% 3%
$ $ $ $
MFI 61,732 19,902 18,546 20,959
In this presentation all loans are home purchase loans to owner occupied, single family and manufactured homes with a first lien, as is the practice with the Federal Reserve’s annual HMDA report.
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Population and HMDA reported lending for Erie County, NY in 2015 Ethnicity and Race White Black Hispanic/Latino Asian
Population 714,156 119,916 41,731 23,621
Percent 78% 13% 5% 3%
$ $ $ $
MFI 61,732 19,902 18,546 20,959
Home Purchase Originations (Action Code 1 Applications (sum of action code 1-5) Only) Applications and Originations Race/Ethnicity Number % Number % White 59,881 80% 37,506 84% Black 3,716 5% 1,561 3% Hispanic/Latino 1,187 2% 648 1% Asian 1,619 2% 1,018 2%
In this presentation all loans are home purchase loans to owner occupied, single family and manufactured homes with a first lien, as is the practice with the Federal Reserve’s annual HMDA report.
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Population and HMDA reported lending for Erie County, NY in 2015 Ethnicity and Race White Black Hispanic/Latino Asian
Population 714,156 119,916 41,731 23,621
Percent 78% 13% 5% 3%
$ $ $ $
MFI 61,732 19,902 18,546 20,959
Home Purchase Originations (Action Code 1 Applications (sum of action code 1-5) Only) Applications and Originations Race/Ethnicity Number % Number % White 59,881 80% 37,506 84% Black 3,716 5% 1,561 3% Hispanic/Latino 1,187 2% 648 1% Asian 1,619 2% 1,018 2% Census Tract
Population
Applications
Originations
In LMI Tract
93,801
10%
2,121
13.1%
1,352
11.7%
In MUI Tract
825,239
90%
14,064
86.9%
10,242
88.3%
In Minority Tract
139,911
15%
692
4.3%
364
3.1%
In this presentation all loans are home purchase loans to owner occupied, single family and manufactured homes with a first lien, as is the practice with the Federal Reserve’s annual HMDA report.
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Population and HMDA reported lending for Erie County, NY in 2015 and Race Population MFI • HomeEthnicity purchase loans made in LMI Percent neighborhoods White $ 61,732 roughly match the percent714,156 of county78% residents in Black 119,916 13% $ 19,902 those tracts. Hispanic/Latino 41,731 5% $ 18,546 Asian
23,621
3%
$
20,959
Purchase • The lendingHome in minority majority tracts isaction far short of Originations (Action Code 1 Applications (sum of code 1-5) Only) Applications and Originations the share ofRace/Ethnicity the population that live there. Number % Number %
•
White 59,881 80% Black a neighborhood’s 3,716 income is 5%not This suggests that Hispanic/Latino 1,187 is white. 2% barrier to lending if the community Asian 1,619 2% Census Tract
Population
a
37,506 1,561 648 1,018
84% 3% 1% 2%
Applications
Originations
In LMI Tract
93,801
10%
2,121
13.1%
1,352
11.7%
In MUI Tract
825,239
90%
14,064
86.9%
10,242
88.3%
In Minority Tract
139,911
15%
692
4.3%
364
3.1%
In this presentation all loans are home purchase loans to owner occupied, single family and manufactured homes with a first lien, as is the practice with the Federal Reserve’s annual HMDA report.
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Distribution of Home Purchase Loans in Buffalo MSA (Erie County and Niagara County)
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Distribution of Home Purchase Loans in Buffalo, NY
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Total Deposits Share of Market for Buffalo MSA in 2016
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Total Deposits Share of Market for Buffalo MSA in 2016 Rank 1 2 3 4 5
Institution Manufacturers and Traders Trust Company First Niagara Bank, National Association KeyBank National Association
Deposits in $000s of Dollars
Percent of Selected Geography
Aggregate Market Share
$
23,003,746
54.63%
54.63%
$
9,802,110
23.28%
77.91%
$
3,320,227
7.89%
85.80%
2,179,284
5.18%
90.97%
1,648,166
3.91%
94.89%
Bank of America, National $ Association Citizens Bank, National Association $
6
Evans Bank, National Association
$
817,555
1.94%
96.83%
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Northwest Bank
$
252,471
0.60%
97.43%
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Bank of Akron
$
248,015
0.59%
98.02%
9 10
Alden State Bank Lake Shore Savings Bank
$ $
247,457 157,677
0.59% 0.37%
98.61% 98.98%
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Total Deposits Share of Market for Erie County, NY in 2016 Rank 1 2 3 4 5
Institution Manufacturers and Traders Trust Company First Niagara Bank, National Association KeyBank National Association
Deposits in $000s of Dollars
Percent of Selected Geography
Aggregate Market Share
$
22,549,914
57.06%
57.06%
$
8,681,879
21.97%
79.02%
$
2,779,674
7.03%
86.06%
1,874,859
4.74%
90.80%
1,505,600
3.81%
94.61%
Bank of America, National $ Association Citizens Bank, National Association $
6
Evans Bank, National Association
$
815,177
2.06%
96.67%
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Bank of Akron
$
248,015
0.63%
97.30%
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Alden State Bank
$
247,457
0.63%
97.93%
9 10
Northwest Bank Lake Shore Savings Bank
$ $
233,683 157,677
0.59% 0.40%
98.52% 98.92%
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Distribution of Banks in Buffalo MSA (Erie County and Niagara County)
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Distribution of Banks in Buffalo, NY
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Erie County, NY Branch Locations by Tract Income and Minority Status
78% of bank branch locations are in neither LMI or Minority neighborhoods
LMI = Low and moderate income MIN = minority majority T = Census tract B = Borrower
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Buffalo MSA Branch Locations by Tract Income and Minority Status
78% of bank branch locations are in neither LMI or Minority neighborhoods
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Home Purchase Lending Erie County, NY 2015
LMI = Low-to-moderate income, MIN= majority minority, T = Tract, B = Borrower
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Home Purchase Lending Erie County, NY 2015 Total
Applications
Loans
Lenders
Origination Rate
LMIT
LMIB
MINT
MINB
LMIT
LMIB
MINT
MINB
2,056
M&T BANK
87%
16%
50%
4%
10%
15%
49%
4%
9%
1,911
FIRST NIAGARA BANK
82%
12%
43%
3%
6%
12%
43%
3%
6%
1,299
QUICKEN LOANS
73%
17%
44%
6%
7%
14%
39%
4%
6%
875
HUNT MORTGAGE CORPORATION
87%
9%
33%
3%
7%
9%
33%
2%
6%
866
MB FINANCIAL BANK NA
79%
12%
41%
2%
5%
10%
38%
2%
5%
836
KEYBANK NATIONAL ASSOCIATION
56%
17%
44%
8%
11%
14%
40%
6%
8%
835
1ST PRIORITY MORTGAGE, INC.
90%
11%
43%
2%
8%
11%
42%
2%
7%
475
PREMIUM MORTGAGE CORP
93%
8%
33%
3%
8%
8%
33%
2%
9%
472
CITIZENS BANK, NA
75%
11%
38%
2%
6%
9%
36%
2%
5%
449
CUC MORTGAGE CORPORATION
47%
20%
36%
10%
10%
15%
33%
6%
9%
Applications
LMI = Low-to-moderate income, MIN= majority minority, T = Tract, B = Borrower
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Home Purchase Lending Erie County, NY 2015 Total Applications
Lenders
2,056
M&T BANK
1,911
FIRST NIAGARA BANK
1,299
QUICKEN LOANS
875
HUNT MORTGAGE CORPORATION
866
MB FINANCIAL BANK NA
836
KEYBANK NATIONAL ASSOCIATION
835
1ST PRIORITY MORTGAGE, INC.
475
PREMIUM MORTGAGE CORP
472
CITIZENS BANK, NA
449
CUC MORTGAGE CORPORATION
• Non-banks are now providing over 50% of home purchase loans nationally, a level they haven’t attained since before the housing crash. • Non-banks are the primary source of FHA lending favored by LMI and minority borrowers. • Non-banks are not subject to CRA so there is very little oversight of where they lend and where they do not. • Non-banks were the primary source of some of the worst loans from the housing bubble, and were the most successful at penetrating minority and low income communities.
LMI = Low-to-moderate income, MIN= majority minority, T = Tract, B = Borrower
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Distribution of Small Business Loans in Cincinnati MSA
Distribution of Small Business Loans in Buffalo MSA (Erie County and Niagara County)
Detail of Cincinnati
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Distribution of Small Business Loans in Buffalo, NY
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Erie County, NY Top Business Lenders
Small Business loans = loans made to businesses with less that $1 million a year in revenue.
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Erie County, NY Top Business Lenders
Highest 61% to SB
Lowest 23% to SB
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Erie County, NY Top Business Lenders – By Tract Income
All business lending (orange) compared with business lending in low-tomoderate income neighborhoods (blue).
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Erie County, NY Top Business Lenders – By Tract Income
All business lending (orange) compared with business lending in low-tomoderate income neighborhoods (blue).
Over 25% of loans to low-to-moderate income areas
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Erie County, NY Top Business Lenders – By Tract Income
All business lending (orange) compared with business lending in low-tomoderate income neighborhoods (blue).
Less than 20% of loans to low-to-moderate income areas
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Erie County, NY Top SB Lenders
The top 10 SBA lenders made about 89% of SBA loans in 2015
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Erie County, NY Top SB Lenders 4% of SBA Lending The top 10 SBA lenders made about 89% of SBA loans in 2015
25.5% of SBA Lending
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Erie County, NY 2015 SBA Loans by Business Type
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Erie County, NY 2015 SBA Loans and Jobs Supported
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Vacant land makes up a significant portion of many neighborhoods in the central part of Erie County. One sample census tract shows 37% of residential properties vacant and owned by the city. Here the purple color indicates low or moderate income neighborhoods.
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Vacant land makes up a significant portion of many neighborhoods in the central part of Erie County. One sample census tract shows 37% of residential properties vacant and owned by the city. The darker green color here indicates more minority residents.
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Heat mapping helps visualize where these properties are really concentrated.
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While some lighter concentrations are present in low or moderate income areas that are white majority, the heaviest concentrations are in low and moderate income minority neighborhoods.
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The clustering gives the impression that much of the city has a large number of vacant properties. However, when we aggregate the properties it is clear that the vacancy issue is highly concentrated in 15-20 census tracts.
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These tracts are those with the highest proportion of minority families that are also low and moderate income.
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Here we look at four specific areas with the heaviest concentrations of vacant land.
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North of Broadway, just west of US 62 (Bailey Ave) near Harvey Austin Elementary School
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South of Genesee St and along Sycamore St, a few blocks south of Martin Luther King Jr Park
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Between Genesee and Ferry Streets, with Bailey Ave to the east.
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Ferry St to the north with Jefferson Ave on the west side.
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Vacant land has very specific consequences that are exacerbated by the central location of the areas where the vacancies are most common. 1. Rents within the local area will rise in relation to incomes, the impact of this is worse since it is already a concentrated area of low and moderate income families. 2. Local economic demand declines, making it harder for businesses to survive. 3. City services become overloaded, a smaller tax base must support the same level of infrastructure. 4. There is often an effort to curtail some public services where the population has declined; fire houses, police and public works staff. 5. An influx of area inappropriate businesses; industrial sites, nimby projects, adult businesses, predatory alternative financial service providers.
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Thank you All members receive support from NCRC Research Ask your regional organizer for details Images in this presentation are from the following sources: https://commons.wikimedia.org/wiki/File:Buffalo_skyline_2014.jpg https://www.goodfreephotos.com/united-states/new-york/buffalo/buffalo-skyline-in-new-york.jpg.php https://commons.wikimedia.org/wiki/File:BuffaloSkyline.jpg Prepared by NCRC Research
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