[Congressional Record Volume 140, Number 13 (Thursday, February 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: February 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
FLEET BANK'S INCITY PROGRAM
Mr. PELL. Mr. President, I wish to note an event which occurred
earlier today here in the Capitol; namely, the unveiling of a
comprehensive and precedent setting new lending program by Fleet Bank,
an institution which is headquartered in my home State of Rhode Island.
This program, called Fleet INCITY, will provide over $8 billion in
loans and credit assistance to low- to moderate-income homeowners and
small businesses located in distressed inner cities of the northeast.
This extraordinary commitment of money and resources to these
underserved communities will mean that those who are too often left
out, chiefly minorities and the economically disadvantaged, will be
able to secure the credit and opportunity necessary to establish an
independent and viable existence for themselves. It means that Fleet
Bank is committing itself to the futures of revitalizing the inner
cities of communities in Providence and Pawtucket. It means that
homeowners in Central Falls, Woonsocket, Westerly, and Newport that had
been locked out of the home mortgage market will not have access to it.
And with this community development and individual self-improvement
will come the economic growth and rising self-esteem which is sorely
needed as we try to find the answer to reversing the trend of decay and
despair in our inner cities.
Mr. President, I am pleased that Fleet Bank is taking the initiative
in this matter and alerting the private sector banking community of its
responsibilities as well as its opportunities in the area of minority
and low-income lending. I hope that this program will become a model
for other banks and that there will be a blossoming of new private
initiatives addressing this area. Indeed, the more that can be done at
the private level, the less that we will have to do in the public
sector. Again, I commend Fleet Bank, and in particular its chairman and
chief executive officer Terry Murray, for undertaking this effort and
expect that when fully implemented, its success will equal its promise.
Mr. President, I wish to submit for the Record the remarks of Fleet
Bank chairman and CEO Terry Murray given at this morning's announcement
of this program and also a chart detailing the components of the INCITY
program.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Remarks by Terrence Murray on the Fleet INCITY Program
ii. announcement of program
I am extremely pleased and genuinely excited to be here
this morning. For more than a year, many of us at Fleet have
closely examined the important banking industry issues of
community investment and small business lending. As a result,
we have determined that it was appropriate to develop the
program I have the pleasure of announcing today.
It is an unprecedented commitment; it is broad in scope;
and we believe its potential impact is enormous.
We are calling the program Fleet INCITY. It's a company-
wide commitment, created by Fleet, to make it easier for low-
and moderate-income people, and for minority- and women-owned
small businesses, to access Fleet's products and services,
especially loans.
I am looking forward to meeting later today with Treasury
Secretary Lloyd Bentsen to brief him personally on Fleet
INCITY. As well as discuss a number of other banking issues.
Over the next three years. Fleet will commit more than $8
billion to affordable housing and other initiatives,
including $800 million in wholly new projects. The program is
designed to:
Improve access to credit for those segments of the
community that traditionally have had the hardest time
getting credit.
Be the most comprehensive community lending commitment ever
made by a U.S. bank.
Amount to more than $2.6 billion a year over three years.
Why are we making such a major commitment?
Fleet intends to be nothing less than a force for positive
change in our society. We believe such programs as Fleet
INCITY have obvious benefits for the economy as a whole.
We believe Fleet INCITY responds to the challenges that the
Clinton administration has posed to America's banks to find
ways to better meet the credit needs of Americans at every
income level.
We believe Fleet INCITY, by making credit available to
families who have had the toughest time getting credit, will
do more for those families than anything else we could offer
them.
Finally, we believe that a program such as Fleet INCITY is
good business. America is becoming more culturally diverse.
Such programs as this--programs that reach out and embrace
that diversity--are as essential to our future as to the
future of this country.
We recognize that this program will not solve all problems
faced by the disadvantaged overnight. However, we do believe
it will be a force for positive change throughout our
markets.
Unfortunately, many borrowers today who have the ability to
repay their loans can't qualify for even simple mortgages
because the guidelines are too rigid. Our program is designed
to cut through some of this red tape.
We believe Fleet INCITY also captures the true spirit of
the Community Reinvestment Act--to ensure credit access for
all qualified borrowers.
iv. summary
We believe that all banks need to think seriously about
community investment and develop programs similar to Fleet
INCITY. We see our program as a model for our industry. We
believe it responds appropriately to the wishes of the
Clinton administration, that it is good business, and that it
will provide valuable benefits to society.
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[Attachment to Fleet INCITY News Release]
Fleet INCITY Components
I. Fleet Recommitment to Affordable Housing and New Commitments to
Products and Services for Low-Moderate Income Customers ($7.685
Billion)
Fleet will more aggressively market its products--
mortgages, consumer loans and other products--and will make
available more flexible underwriting requirements to meet the
needs of low- and moderate-income families and individuals.
Over three years, the government-sponsored affordable housing
component, which includes FHA mortgages and other government-
sponsored affordable housing initiatives, is projected to
total more than $7 billion, consistent with Fleet's current
volume ($2.9 billion in 1993).
The Fleet Affordable Housing Program and Fleet/UNAC
Mortgage Program will total $315 million and $140 million,
respectively, over three years, while the Fleet Consumer Loan
component is expected to reach $225 million over the same
period.
Fleet's residential mortgages (Fleet Affordable Housing
Program) will be offered with guidelines that provide greater
home ownership opportunities to low-moderate income borrowers
who are not eligible for traditional mortgage products or
those offered by federal, state or local government agencies.
The guidelines are modeled after the Federal National
Mortgage Association's highly successful Community Homebuyers
Program, with additional flexibility based on recommendations
solicited from state housing agencies and community groups.
The Fleet Consumer Loan component is an outreach effort
intended to meet the credit needs of consumers in New England
and New York, and it includes a ``closer look'' program on
home equity and instalment loans.
Consumers who are interested in any of Fleet's products may
access them by visiting or calling any Fleet banking office,
or by calling 1-800-CALL-FLEET (1-800-225-5353).
The Fleet/UNAC Mortgage Program will total up to $140
million over three to five years. Mortgages originated under
this program will be to low-moderate income borrowers, as
well as borrowers locating in low-moderate income
communities. Loans will be secured by first mortgages on
owner-occupied one- to four-family residences, condominiums
or co-ops. Loans will be made for home purchases, as well as
purchases that include rehabilitation, or to refinance or
consolidate existing debt on qualified real estate.
UNAC will administer the program from its Boston office and
satellite offices in the several metropolitan areas included
in the program. UNAC also will provide such client services
as community outreach to churches, unions and other
community-based organizations; homebuyer workshops;
prequalification of borrowers; housing search assistance;
counseling throughout the mortgage process; rehab and closing
assistance; post-ownership assistance, and several other
services.
Consumers who would like to access the Fleet/UNAC Mortgage
Program may do so by contacting UNAC in Boston at 1-800-967-
4275.
ii. Economic Revitalization, small and minority-owned business lending
($315 Million)
Fleet is filing an application with the Federal Reserve
Board to establish, and will fund, a new, $15-million Fleet
Community Development Corp. (CDC) to address the needs of
small businesses and economic development projects, both
urban and rural, with equity investments and low-moderate
income loans. It represents one of the largest initial
capital investments ever made to a CDC by a bank holding
company. A wholly owned, nationally operated subsidiary of
Fleet Financial Group, it will operate primarily in the six
states in which Fleet has banking operations (New York,
Connecticut, Massachusetts, Rhode Island, Maine and New
Hampshire). The process of applying for and establishing
the Fleet CDC is expected to take from three to six
months.
Among other activities, the new Fleet CDC will provide
support to small business enterprises by offering financial
assistance in the form of low-interest loans, interest-free
loans and equity investments to those businesses that often
encounter the most difficulty in securing credit from banking
institutions by traditional means. After it is approved and
established, announcements in local media will inform
prospective applicants how to apply to the Fleet CDC for
grants and loans, and that further information will be
available from local community development officers at
Fleet's banks.
An additional $545,000, over three years, will be earmarked
for a new small business initiative through which Fleet will
create and operate the Fleet Community Development Advisory
Board. The board will serve as a collaborative ``brain
trust'' effort between Fleet bankers and community leaders to
address significant community development issues, such as
exploring and developing creative methods to make credit and
other financial services available and more readily
accessible. Prominent national and regional leaders with
expertise in small business and economic development
currently are being considered for advisory board membership.
Fleet expects to announce the composition of the advisory
board on or about May 1, 1994.
In addition, Fleet will continue to enhance its current
$210 million Community Loan Program by an additional $90
million over the next three years to further develop its
small business microloan program. The microloan program will
make loans for $10,000 to $500,000 to small businesses,
concentrating on minority- and women-owned businesses, and to
businesses located in low-moderate income areas.
Fleet's existing Community Loan Program is designed to help
stabilize and revitalize low- to moderate-income and/or
distressed communities. It offers Fleet's broad range of
business loans: loans to nonprofits involved in community
development activities; agricultural loans; government
guaranteed and government participation loan; loans to
community nonprofit health car organizations, religious
organizations and nonprofit educational institutions; and
loans to finance projects designed primarily to promote
community welfare, such as economic rehabilitation and
development of low-income areas by providing housing,
services and jobs for residents.
Small business owners interested in obtaining information
about or applying for Fleet community loans or the Fleet
microloan program, may do so by visiting or calling their
local Fleet small business or community bank lender, or by
calling 1-800-CALL-FLEET (1-800-225-5353).
iii. community initiatives
Fleet will continue to support programs dedicated to the
long-term growth and stability of the communities it serves,
including education and diversity initiatives.
Fleet also will continue to support and expand its consumer
credit education efforts, with emphasis on home ownership and
personal finance. Furthermore, Fleet will continue to focus
charitable giving, through an existing program known as the
Fleet Economic Initiative, to assist nonprofit organizations
throughout the Northeast with long-term community
development. This effort, which is funded through the Fleet
Charitable Trust, will give major consideration to nationally
known nonprofit community development organizations.
In addition to charitable giving and its diversity program
(described earlier), Fleet will expand corporatewide its
existing college scholarship program for financially eligible
minority students, Fleet scholars, which also is funded by
the Fleet Charitable Trust. Operating successfully at Fleet's
Rhode Island bank since 1971, Fleet Scholars has awarded more
than $50,000 in college scholarship funding to minority
students. The program also provides the students with summer
internships at the bank.
Guidance counselors at the high school level who are
interested in further information about the Fleet Scholars
program may obtain it by contacting the charitable giving
coordinator at the local Fleet subsidiary.
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