Shriver Center: Community Investment News

Community Investment News (August 2007)

2008-02-12T22:37:12Z

Asset Limits in Public Benefit Programs Cost More than They're Worth

States consider income and assets, but not debts, in determining participant eligibility in public benefit programs to ensure that only those who truly need help get the assistance. The rationale is to guarantee that people use their assets as cash reserves in times of need rather than tap into public assistance programs. When debts were factored, participants in these programs are more likely to have no net worth or a negative net worth, even though caseworkers are required to administer and validate asset amounts. To read more of this article click here.

Hot Federal Legislation

HR 3172- The Freedom to Save Act will eliminate asset tests for SSI, SCHIP, TANF, and reform Food Stamp asset rules.
HR 1514/S.871- The Savings for Working Families Act will increase saving incentivies for low-to moderate-income people to save through individual development accounts.

Illinois' TANF Grant: Inadequate for Too Long

Despite strong support from the Illinois House, a long overdue and much needed increase in the cash grants Illinois pays to families in its Temporary Assistance for Needy Families (TANF) program remains uncertain. Click here to read more.

Calendar of Events

Sept. 12: 2007 Assets and Opportunity Scorecard Release

Oct. 3 & 10: All My Money training. For more information contact Karen Chan.

Oct. 4: 2007 Scorecard Event at the Federal Reserve Bank of Chicago. For more information click here.

Nov. 14: Illinois Asset Building Group Member meeting- Location TBD

Nov. 29: Annual Shriver Dinner in Chicago

Auto-IRAs Would Help Employees Save for Retirement

More than half of the workforce in America lacks access to an employer-sponsored retirement savings plan. Click here to find out what the U.S. Congress and some states are doing to address this problem.

Minority Women and Subprime Lending

The rate of homeownership within a community is more than just a monetary asset. Lending rates charged to minority women have a lasting impact on individuals as well as their communities. Many mortgage brokers label women as “high risk” borrowers, but recent research reveals how financial institutions perpetuate this stereotype. To read more of this article click here.

The Community Investment Unit develops and promotes policies and programs that move people from poverty to prosperity, including financial education, access to mainstream financial services, asset building, and consumer protection. For more information, contact Dory Rand at 312.368.2007.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.

Community Investment News (September 2007)

2008-02-13T15:25:51Z

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CFED Releases the 2007-2008 Assets and Opportunity Scorecard

CFED uses the increasingly popular asset building approach to analyze U.S. census data on wealth and poverty along with other state-by-state data on homeownership, debt, health coverage and education. In the 2007-2008 Assets and Opportunity Scorecard released on September 12th CFED ranks the 50 states and District of Columbia. on 46 performance measures and 38 key policies. Illinois ranks low - 30 out of 51 - in asset-building and asset-protection outcomes.To view the Scorecard click here. To see Illinois's rankings click here.

Hot Legislation

Federal

S2036- A bill to temporarily raise conforming loan limits in high cost areas and portfolio caps applicable to Freddie Mac and Fannie Mae. For full text click here.

HR2419- The 2007 Farm Bill will increase resource limits in the Food Stamp program. For more information visit FRAC.

Illinois

SB1167- This bill would authorize a commission to establish a Foreclosure Protection Loan Fund, protect first time homebuyers and create a predatory lending database for Cook County. It was sent to the Governor September 5. For full text click here.

"To Save or Not to Save?"

Congressional leaders, Capitol Hill staffers, and advocates participated last month in a briefing on federal and state policies and proposals to help low-income people who receive public assistance save and build wealth called "To Save, or Not to Save? Encouraging Saving Through Asset Limit Reform." To read more and view a video of the event click here.

Calendar of Events

Sept.12-27: Statewide budget hearings, for more information click here.

Oct.4: "Advancing Asset Policy in Illinois" event at the Federal Reserve Bank of Chicago. For more information click here.

Oct.11: 2007 Assets & Opportunity Scorecard briefing in Springfield, IL. The event will be held at the Capitol in the Rathskellar Legislative Dining Room from 7am to 10am.

Oct.12-13: Fall Management Institute: Building Financially Fit Families and Staff, National-Louis University, Wheeling Campus Annex. For map and directions click here.

Nov.15-16:"Strategies for Improving Economic Mobility of Workers", a conference at the Federal Reserve Bank of Chicago. For more information click here.

Nov. 29: Shriver Center Awards Dinner in Chicago

Senators Clinton (D-NY) and Gordon Smith (R-OR) introduce The New Saver's Act

United Senators Clinton and Smith introduced SB1967, which proposes the creation of Young Savers Accounts that will allow parents to make tax-advantaged, direct contributions to Roth IRA-type accounts for their children. To view the SB1967 click here.

State Asset Limit Reform Toolkit

The State Asset Limit Reform Toolkit for advocates and policymakers who seek to reform or eliminate asset limits in state-administered public benefit programs.Use the following link to access SALT.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.

Community Investment News (October 2007)

2008-02-12T22:43:28Z

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IABG Advances Assets & Opportunity Scorecard

The 2007-2008 Assets and Opportunity Scorecard was released by CFED, a national economic policy and research organization, on September 12, 2007. The Scorecard provides a comprehensive comparison of states in the areas of family financial security, wealth and poverty. For more information on how Illinois and other states fared, click here.

As a follow up to the Scorecard Release, the Illinois Asset Building Group(IABG) hosted two events in Illinois to share the Scorecard results and discuss how to advance asset-building policies. For more information on IABG, visit www.illinoisassetbuilding.org/

Hot Legislation

Federal

HR 1514/S871- This bill increases savings incentives for low- to modertate-income people to go to college, buy homes or start a business.

HR2419- The 2007 Farm Bill will further strengthen food stamp benefit increases, raise food stamp resource limits significantly, and restore food stamp eligibility to more vulnerable groups currently left out.

Illinois

SB1167- Awaiting the Governor's signature, this bill establishes a Foreclosure Prevention Loan Fund, protects first-time home buyers, regulates mortgage brokers and creates a predatory lending database for Cook County and other provisions.

Is there hope for HOPE VI?

âIn Miami, HOPE VI left over 200 people homeless,â said Yvonne Stratford of Low-Income Families Fighting Together (LIFT). This has been the theme of the series of meetings convened by the National Training and Information Center (NTIC) aiming to develop a resident-centered dialogue around Public Housing reform. To read more click here.

Calendar of Events

Nov. 14: IABG General Membership Meeting (location TBD). For more information, contact Kelly E. Slay at kellyslay@povertylaw.org

Nov.15-16:"Strategies for Improving Economic Mobility of Workers", a conference at the Federal Reserve Bank of Chicago. For more information click here.

Nov. 29: Shriver Center Awards Dinner in Chicago

ASPIRE Act Reintroduced

The American Saving for Personal Investment, Retirement, and Education Act (The ASPIRE Act) would provide a savings account and one-time contribution of $500 to every newborn child born after December 31, 2007. The bill, which is a reintroduction of the Aspire Act of 2005, represents a bipartisan effort to promote financial literacy and encourage savings among Americaâs children. For more information on the ASPIRE Act click here.

Clinton Offers Retirement Plan for All Americans

Democratic presidential candidate Senator Hillary Rodham Clinton recently announced her plan to offer a 401(k) retirement account up to $1,000 in annual matching funds for every US worker.

Right now, only some employers offer a 401(k) for their employees. Although the benefits of a 401(k) are undisputed, in most cases where employees earn wages, no such program exists. In a time when the future availability of social security benefits is uncertain, Clintonâs program could provide hope to many workers and their families. For more information click here.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.

Community Investment News (November 2007)

2008-02-13T15:23:57Z

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Account Ownership and Financial Education
New Study Suggests Link Between Account Ownership and Financial Education

A new study commissioned by the Financial Services and Education Project finds that financial education and accounts have an iterative relationship, whereby each leads to consumers seeking more of the other. Combining financial education and accounts seems to have a number of positive effects for some consumers. To read the full report please click here.

Hot Legislation

Federal

HR 3915 Mortgage Reform and Anti-Predatory Lending Act of 2007 will prohibit steering incentives to mortgage originators. For full text click here.

HR 2419- The 2007 Farm Bill will increase resource limits in the Food Stamp program. For the full text click here. Take Action

Illinois

SB 1167 Mortgage Certificate Release Penalty was signed by the Governor on Nov. 2

Aspiring Scholars Matching Grant Program

Arkansas has become the eighth state to establish a matching grant program for 529 college savings accounts when Governor Mike Beebe signed into law Act 597 in March. The act authorizes the creation of the Aspiring Scholars Matching Grant Program, a pilot program that will match low-income families deposits into 529 accounts. The law excludes 529 accounts from asset tests used to determine eligibility in TANF, Medicaid, and Food Stamps. For more information please click here.

Calendar of Events

Nov. 29: Shriver Center Awards Dinner in Chicago

Dec.12: IABG Full Member Meeting 12-1pm

National City Bank

One North Franklin, Chicago IL 60606

Working Families Food Stamp Initiative

The USDA approved initiative expands access to the Food Stamp Program to low-income, working families in New York. For more information please click here.

Mortgage Lending and Predatory

HR 3915 would amend the Truth in Lending Act to reform consumer mortgage practices, provide accountability, establish licensing and registration requirements for residential mortgage originators and provide certain minimum standards for consumer mortgage loans. Take action on HR 3915.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.

Community Investment News (December 2007)

2008-02-13T15:22:57Z

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Don't let the payday loan grinch steal your holiday fun

Lt. Governor Pat Quinn joined advocates in the Monsignor John Egan Campaign for Payday Loan Reform, including Citizen Action-Illinois, Woodstock Institute, Heartland Alliance for Human Needs & Human Rights, the Illinois Asset Building Group, 8th Day Center for Justice, Sargent Shriver National Center on Poverty Law, and the Payday Loan Grinch on December 5 at an Americash store in Chicago to warn consumers to avoid payday installment loans for fast cash this holiday season. The Payday Loan Reform Act of 2005 does not protect consumers who take out installment loans over 120 days. To read the full article, click here.

Hot Legislation

HR2419 - The 2007 Farm Bill will further strengthen Food Stamp programs, improve food stamp resource limits, and restore food stamp eligibility to more vulnerable groups currently left out.
S2341 - The Focusing Investment Resources for a Safe Transition (FIRST) Act if passed, will provide Individual Development Accounts (IDAs) to support foster youth who are aging out of the foster care system.
S2136 - The Helping Families Save Their Homes in Banktruptcy Act of 2007 was introduced to address the treatment of primary mortgages in banktruptcy proceedings.
S2452 - The Homeownership Preservation and Protection Act of 2007 eliminates prepayment penalties and yield spread premiums in sub-prime loans, contains full assignee liability and includes a fiduciary responsibility for brokers.

United Way launches financial education toolkit

The United Way of Massachusetts Bay and Merrimack Valley and Bank of America recently launched an online financial education toolkit to assist community-based organizations in their efforts to offer financial education to families and individuals. The toolkit was designed to ensure quality and consistency of financial education programs and to increase the financial stability of Massachusetts' low-income families. Click here to access the toolkit.

Calendar of Events

March 12-15, 2008: National Community Reinvestment Coalition (NCRC) Annual Conference in Washington, D.C. For more information click here.

September 11-13, 2008: "Advancing America's Asset Agenda", a conference sponsored by Corporation for Enterprise Development (CFED) in Washington, D.C. For more information click here.

CIU turns talk into action

Members of the Shriver Center's CIU attended the National Training and Information Center's Housing and Banking Summit, Turning Talk into Action, December 5-7 in Chicago, where they participated in a variety of sessions relating to the preservation of affordable housing, the future of the Community Reinvestment Act, and fair lending practices. The conference drew community leaders from across the country to network and discuss strategies for preserving the American dream of homeownership and asset building. The Shriver Center is currently reaching out to legislators to build support for legislation that combats anti-predatory practices and protects. To read more, click here.

Teen bank models generate interest

Dory Rand, Supervising Attorney of the Community Investment Unit, recently presented to a group of potential bank partners at Banking on Our Youth and Our Community, an interest meeting sponsored by Philadelphia high school, Kensington International Business/Finance and Entrepreneurship High School and the FDIC. As the coordinator of the Curie Branch in Chicago and consultant to branch projects in the Bronx, New York and Fresno, California, Rand discussed why student-run banks represent a viable solution to many of the problems that face students in largely unbanked and underbanked communities. Click here for more information on student-run banks.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.

Community Investment News (January 2008)

2008-02-13T15:21:42Z

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Rate Caps: the Only Proven Cure for Payday Loan Debt

"The only proven way for state policymakers to protect their citizens from predatory small loans is to enforce a comprehensive small loan law with an interest rate cap at or around 36 percent," concludes the Center for Responsible Lending (CRL) in a report released Dec. 13, 2007. See www.responsiblelending.org.

The report, entitled "Springing the Debt Trap: Rate caps are only proven payday lending reform," reaches that conclusion after evaluating the effectiveness of three types of payday loan policies: little or no restriction; an interest rate cap; and a middle ground where payday lenders can charge triple-digit interest rates with certain restrictions. To read more about the report's findings and the CRL's recommendations, click here.

Hot Federal Legislation

HR2419 - The 2007 Farm Bill will further strengthen Food Stamp programs, improve food stamp resource limits, and restore food stamp eligibility to more vulnerable groups currently left out. See www.frac.org.
S2341 - The Focusing Investment Resources for a Safe Transition (FIRST) Act if passed, will provide Individual Development Accounts (IDAs) to support foster youth who are aging out of the foster care system.
S2136 - The Helping Families Save Their Homes in Banktruptcy Act of 2007 was introduced to address the treatment of primary mortgages in banktruptcy proceedings.
S2452 - The Homeownership Preservation and Protection Act of 2007 eliminates prepayment penalties and yield spread premiums in sub-prime loans, contains full assignee liability and includes a fiduciary responsibility for brokers.

It's Time for Leadership on Job Training

Throughout America, there is a boom happening, but it is not one we should be especially proud of. It is a boom in very low-wage work. A growing number of jobs do not pay enough to sustain a family. Paradoxically, there are employers "many of them "who will tell you that if they could hire skilled workers, those workers would be paid career-path family-sustaining wages. Promising strategies already exist to deliver the necessary training and skills to low-paid American workers. Instead of continuing its years-long disinvestment in job training, the federal government can prompt and support the use of these and similar strategies. For more information click here.

Hot Illinois Legislation

SB12 - The Illinois EITC Bill amends the Illinois Income Tax Act. Increases the amount of the state earned income tax credit from 5% of the federal credit to: (i) 7.5% of the federal tax credit for taxable years ending in calendar year 2007; and (ii) 10% of the federal tax credit for taxable years ending in calendar year 2008 or thereafter.
HB4191 - The Our Own Home Bill amends the Deposit of State Moneys Act to allow state guarantees for refinancing as well as origination of mortgage loans for qualified borrowers.

IRS considers new limits on refund anticipation loans

With the catastrophic housing market, rising costs of food and energy, and recession talks looming, many cash-strapped Americans will be tempted by quick yet very costly refund anticipation loans (RALs) during this tax season. The Internal Revenue Service announced it is considering a proposal to restrict tax preparers from offering RALs in connection with preparation of tax returns, according to American Banker. Anecdotal evidence has shown that tax preparers promote tax fraud when they encourage their consumers to inflate their anticipated tax refund. Now more than ever before, advocates have a huge responsibility and role to play in both educating consumers and proposing policies that will protect their assets. They can start by writing letters to the IRS during the 90-day comment period. To learn more, click here.

Calendar of Events

February 23, 2008: Money Matters Fair, Chicago, sponsored by the FDIC Alliance for Economic Inclusion.
March 12-15, 2008: National Community Reinvestment Coalition (NCRC) Annual Conference in Washington, D.C. For more information click here.
March 19 & 26, 2008: All My Money train-the-trainer curriculum in Chicago. Click here for more information. Click here to register.
September 11-13, 2008: "Advancing America's Asset Agenda", a conference sponsored by CFED in Washington, D.C. For more information click here.

CI News is published by the Sargent Shriver National Center on Poverty Law. If you no longer wish to receive emails from us, please use the following link to change your subscription settings.