| Amid PPP Abuse Lenders Like
Live Oak Bank Issue Prurient Denial To Inner
City Press Data Q
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- CJR -
PFT
SDNY COURT /
SOUTH BRONX, Oct 1 –
Amid the
COVID-19 pandemic, fair
lending and the Community
Reinvestment Act are taking a
back seat, or worse. Some
banks to which CRA applies are
excluding smaller businesses
and those in communities of
color. And some banks bragging
about the PPP loans won't
provide any information - we
are Pressing.
Inner City Press / Community
on the Move has begun
contacting both banks and
non-banks for their Paycheck
Protection Program data.
Without yet getting into the
full results, note that Inner
City Press asked Live Oak
Bank, twice: "On behalf of
Inner City Press / Community
on the Move and its Fair
Finance Watch project, and in
my personal capacity, this is
a formal request for Live
Oak's full CRA Public File and
pressingly for the following
with regard to the Paycheck
Protection Program (PPP) and
Economic Injury Disaster Loans
(EIDL), in light of the
COVID-19 pandemic and the need
for this information: 1.
How many loans has Live Oak
made pursuant to the
programs? 2. What is the
total dollar amount of loans
made pursuant to the
program 3. What is the
average loan size? ... 9. What
percentage of your PPP loans
are to borrowers with a
previous borrowing
relationship with your
institution?"
Their SVP
for communications sent only
the CRA file, performance
evaluation and strategic plan
- no date. Now after months of
non response on data by Live
Oak Bank, on October 1 came
this:
"Thank you for
your interest in Live Oak Bank
Based on your responses, our
loan programs are not a fit
for your business at this
time. Some of the most common
reasons for this are listed
below: Loan amount
is below our
minimum Business
is not based in the United
States FICO credit
score does not meet our
minimum
requirements Prior
bankruptcy Prior
loss to creditors or
government Pending
legal action
Presently suspended, debarred,
proposed for debarment,
declared ineligible or
voluntarily excluded from
participation in this
transaction by any Federal
department or
agency Revenues
derived from gambling, loan
packaging, or from the sale of
products or services, or the
presentation of any depiction,
displays or live performances,
of a prurient sexual nature."
Oh really... We'll have more
on this.
Meanwhile the Fed
is pushing forward to approve
bank merger applications, like
Banco Bradesco - BAC which
Fair Finance Watch has been
opposing, as it has commented
to the OCC against the
acquisition of State Farm's
health savings account
business by Webster Bank,
based in part of Webster's
problematic Paycheck
Protection Program
performance.
Fintechs and other non-bank
financial firms are now at the
PPP trough and are getting
sued. For example, there is
the lawsuit filed as a class
action against Fountainhead
Commercial Capital LLC on May
6, noting the finance firm
advertised that it would
process loan requests on a
first-come, first-served basis
and then stealthly shuffled
its line of PPP applicants so
that it would lock down the
largest lending fees first.
Meanwhile Paulson of the OCC,
which wants to admit fintechs
into banking without
regulation, says no one is in
PPP for the money. This while
in response to Inner City
Press' FOIA request for
Otting's schedule the OCC
redacted the names of banks
that he met without, and
obscured others. (A FOIA
appeal has been filed.)
Amid
all this, Fair Finance Watch
and Inner City Press /
Community on the Move are
launching a new project. Watch
this site.
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Past
& future at UN: Room S-303, UN,
NY 10017 USA
Mail: Box 20047, Dag
Hammarskjold Station NY NY 10017
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2020 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com
|
,
