The 2011 Chairman’s Award for Excellence in Serving the Needs of Low- and Moderate-Income Consumers
The FDIC award, Chairman’s Award for Excellence in Serving the Needs of Low- and Moderate-Income (LMI) Consumers, recognizes individuals at FDIC-insured institutions who work to creatively and responsibly meet the credit and deposit needs of underserved consumers in their community. A link to information about the nomination process, eligibility, and selection process is below as well as last year’s recipients.
The Chairman’s Award is part of the FDIC’s efforts to encourage institutions to engage in economic inclusion activities. The FDIC published Notable Practices from the 2011 Chairman’s Award for Excellence in Serving the Needs of Low- and Moderate-Income Consumers – PDF to inform institutions about promising methods that some banks have employed in serving their entire communities.
2011 Chairman’s Award Winners
In each category listed below, the FDIC awarded the following individuals for their work on a specific project within their financial institution.
Excellence in Affordable Credit for LMI Consumers
Joseph P. Flynn, Jr.
LaReta J. Lowther
CRA Freedom Series Loan Products, WesBanco Bank, Wheeling, West Virginia
WesBanco’s CRA Freedom Series is a suite of three distinct loan products: the CRA Freedom Mortgage, the CRA Freedom Modernization Home Improvement Loan, and the CRA Freedom Auto Loan. All of the loans are specifically designed for LMI borrowers, with flexible underwriting and safe features like a fixed interest rate. All of the CRA Freedom products have performed well. The program is innovative in its cohesive, targeted approach to lending to LMI consumers for diverse purposes. WesBanco operates in West Virginia, Ohio and Pennsylvania, encompassing rural communities as well as large metropolitan cities.
Excellence in Transactional Accounts for LMI Consumers
Gateway Checking Account, United Bank, Atmore, AL
United Bank’s Gateway Checking account targets consumers with low or no credit scores who may not otherwise qualify for a checking account. The account features paper checks but no debit or ATM card and no overdraft fees. After six months, the account can be upgraded to a checking account with more features. The account also is accessible to immigrants. As of the first quarter of 2011, United Bank has opened 1,238 Gateway Checking accounts, successfully increasing access to banking services for underserved consumers in a way that is safe and affordable.
Excellence in Other Products or Programs that Creatively and Effectively Reach Out to LMI Consumers
M. Licha Ibarra
Hispanic Outreach Program, Brotherhood Bank & Trust, Kansas City, Kansas
Brotherhood Bank & Trust’s Hispanic Outreach Program (HOP) provides a wide range of financial services to underbanked and LMI consumers in Kansas City. The program includes a uniquely underwritten mortgage product with permissible alternative forms of customer identification, a low-cost remittance product, and financial products, services, and education in Spanish. The HOP’s combination of products, services and outreach has successfully fostered trust within the LMI Hispanic community and created new banking relationships with formerly underserved customers.
Notable Practices from the 2011 Chairman’s Award
Following the Chairman’s Award, the FDIC released Notable Practices for the 2011 Chairman’s Award for Excellence in Serving the Needs of Low- and Moderate-Income Consumers. This document describes the award-winning programs from the Chairman’s Award and highlights promising practices used by the winners and other nominees. These practices are drawn from actual work done by bank staff and may be helpful to banks interested in serving LMI consumers. Notable practices are offered on mortgage lending, small-dollar lending, savings, transaction products, and outreach. The FDIC encourages banks to use these practices as examples of how to serve LMI consumers in their community. To view the Notable Practices, go to http://www.fdic.gov/about/comein/lmipractices.pdf (PDF Help)
The FDIC is committed to ensuring that all Americans have access to safe, secure, and affordable banking services. This commitment contributes to the FDIC’s mission to promote public confidence in the banking system and ensure that everyone has the opportunity to save, borrow affordably, build assets, and achieve financial security.
The FDIC created the Chairman’s Award following a discussion with the FDIC Advisory Committee on Economic Inclusion as a way to recognize the important role individual bankers play in bringing responsible products and services to underserved, LMI consumers. By working to create a better financial future for their communities, the recipients of the Chairman’s Award help to promote economic inclusion and to build a better banking system.
Notable Practices from the 2011 Chairman’s Award for Excellence in Serving the Needs of Low- and Moderate-Income Consumers is available at http://www.fdic.gov/about/comein/lmipractices.pdf. (PDF Help)
Information about the nomination process, eligibility, and selection process for the FDIC Chairman’s Award for Excellence in Serving the Needs of LMI Consumers can be found at: http://www.fdic.gov/about/comein/lmibackground.html.
Information on the FDIC Advisory Committee on Economic Inclusion is available at http://www.fdic.gov/about/comein/.
Information on all of the FDIC’s economic inclusion initiatives is available at http://www.economicinclusion.gov/.
For questions about the award, contact Susan Burhouse (firstname.lastname@example.org or 202-898-3674).