Posted By: InFairness, CRCM
Financing MSB=Community Development? - 11/29/21 01:39 PM
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).
Posted By: Pale Rider
Re: Financing MSB=Community Development? - 11/29/21 03:01 PM
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.
Posted By: InFairness, CRCM
Re: Financing MSB=Community Development? - 11/29/21 04:28 PM
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.