First Union originally committed to lend at least $200 million to residents with low and moderate incomes; small, women, and minority-owned businesses; and community development projects in defined low and moderate income and underserved areas over a twenty year period. First Union has exceeded that goal by making approximately $517 million in such loans over the past four years.
Under terms of the amendments, First Union will increase its lending target to at least $3 billion for the entire term of the CDP.
"The success of the Community Development Plan is based on the strength of the partnership that we have established with First Union," said Leroy Hubbard of the D.C. Reinvestment Alliance/Metropolitan Washington Planning & Housing Association. "The important point to remember about increasing the commitment to $3 billion is the fact that the community will now have expanded lending pools for affordable mortgages and small business lending."
As part of the CDP agreement, First Union will continue to report its performance results to the D.C. Reinvestment Alliance and the Office of Banking and Financial Institutions.
"Reaching the $500 million dollar mark in just four years is a b showing of First Union's commitment to provide affordable lending programs to the citizens of the District" , said J. Anthony Romero, III, superintendent of the Office of Banking and Financial Institutions.
First Union has already expanded its menu of affordable mortgage products in the CDP to include the Neighborhood Development Mortgage, Community Partnership Mortgage and Agency Mortgage. The bank's affordable mortgage products feature below market financing, 100 percent financing with no private mortgage insurance and community based home buyer counseling dependent upon which mortgage product the customer chooses. First Union is also offering a real estate equity based product designed for borrowers with impaired credit.
"Our success in achieving our goals is based on the b performance of our existing affordable lending products and the creation of new and innovative financing options" , said Hugh Long, First Union's capital area president. "We look forward to moving ahead in a positive way, and in cooperation with The Office of Banking and Financial Institutions and the D.C. Reinvestment Alliance, as we work together to serve all the citizens of the District of Columbia."
As part of the increased $3 billion commitment, First Union will also increase its small business lending commitment to $300 million over the remaining 15 years of the CDP.
First Union National Bank-Washington, D.C. has received an "outstanding" rating from the Office of the Comptroller of the Currency for its efforts in meeting the credit needs of the District. First Union, a leading provider of financial services to low and moderate income community, annually has approximately $3.7 billion in community reinvestment activity.
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