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#2262930 - 11/29/21 01:39 PM Financing MSB=Community Development?
InFairness, CRCM Offline
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InFairness, CRCM
Joined: Nov 2010
Posts: 632
USA
Has anyone at an FDIC-regulated bank ever received credit for loans to money services businesses having a community development purpose? Our leadership is arguing that the MSBs provide financial services to unbanked and underbanked immigrant and LMI populations. I recognize that they do, however, MSBs are often high-cost financial services, so it seems a little icky (highly technical compliance term).
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#2262933 - 11/29/21 03:01 PM Re: Financing MSB=Community Development? InFairness, CRCM
Pale Rider Offline
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Pale Rider
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under the Lone Star
Goodnight! That sounds like some contorted logic. Check cashers, car title lenders, Carshields, rent-to-own businesses preying on the underbanked, are in fact, pursuing a CD purpose. Just my opinion, but I don't see the FDIC accepting this explanation for qualifying a loan as CD.
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#2262937 - 11/29/21 04:28 PM Re: Financing MSB=Community Development? Pale Rider
InFairness, CRCM Offline
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InFairness, CRCM
Joined: Nov 2010
Posts: 632
USA
Originally Posted by Pale Rider
Goodnight! That sounds like some contorted logic. Check cashers, car title lenders, Carshields, rent-to-own businesses preying on the underbanked, are in fact, pursuing a CD purpose. Just my opinion, but I don't see the FDIC accepting this explanation for qualifying a loan as CD.

Glad I'm not crazy over here.
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Opinions are strictly my own, and have nothing to do with my employer.

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