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Federal Reserve System Community Affairs Research Conference

Financing
Community
Development
Learning from the Past, Looking to the Future

March 29-30, 2007


Capital Hilton
Washington, D.C.


T
he Community Affairs officers of the Federal Reserve System invite you to
attend a conference presenting research on trends and innovations in products
serving low- and moderate-income communities and people.

Every year, communities around the country invest millions of dollars to stabilize and
rebuild distressed and underserved urban and rural communities. This fifth biennial
research conference brings together a diverse audience from academia, financial
institutions, community organizations, foundations, and government to examine the
issues and challenges facing successful community development.

The topics we will examine are important and include:

• subprime lending remedies and penalties;


• foreclosure;
• bankruptcy;
• consumer education;
• small business lending;
• payday lending; and
• prepaid cards.

Financing Community Development provides a great opportunity to hear and discuss


original studies about the opportunities and obstacles to helping low- and moderate-
income communities and people build wealth through home loans, small business
loans, or other financial services. This conference will be of interest to:

• financial institutions’ executives, lenders, and compliance and community


development officers;
• leaders and staff of community and economic development organizations;
• policymakers in community and economic development;
and
• scholars of economics, finance and banking, and urban and rural
development.


Financing
Community
Development
Learning from the Past, Looking to the Future

Thursday, March 29, 2007

8:30 a.m. Welcome and Opening Remarks

9:00 a.m. to 10:15 a.m. Is Subprime Loan Pricing Fair or Predatory?

10:15 a.m. to 10:45 a.m. Break

10:45 a.m. to 12:00 Noon Are Legislative Remedies to Limit Predatory Lending Really
Remedies?

12:00 Noon to 1:30 p.m. Lunch and Guest Speaker


Mary Lee Widener, President,
NHS of America, Inc.

1:30 p.m. to 2:45 p.m. What Determines Who Defaults or Goes Bankrupt?
How Do They Fare?

2:45 p.m. to 3:15 p.m. Break

3:15 p.m. to 4:30 p.m. What Should and Can Be Done to Enhance Borrowers’
Knowledge of Their Credit Risk?

5:00 p.m. to 7:00 p.m. Reception

Friday, March 30, 2007

8:30 a.m. Welcome and Opening Remarks

9:00 a.m. to 10:15 a.m. Does the Financing of Small Businesses Differ for Minority-
Owned Businesses and for Businesses in Low-Income
Areas?

10:15 a.m. to 10:45 a.m. Break

10:45 a.m. to 12:00 Noon Can Alternative Financial Services Products Help the
Underbanked?

12:00 Noon to 1:30 p.m. Lunch and Keynote Speaker


Ben S. Bernanke
Chairman, Board of Governors of the Federal Reserve System


Thursday, March 29, 2007

8:30 a.m. Welcome


Sheila F. Maith, Assistant Director and Community Affairs Officer,
Division of Consumer and Community Affairs,
Board of Governors of the Federal Reserve System

Opening Remarks
Jeffrey M. Lacker, President,
Federal Reserve Bank of Richmond

9:00 a.m. to 10:15 a.m. Is Subprime Loan Pricing Fair or Predatory?

“Unfair Lending: The Effect of Race and Ethnicity on the Price of Subprime
Mortgages,” Debbie Gruenstein Bocian, Keith S. Ernst, and Wei Li, Center for
Responsible Lending

“Predatory Lending Practices and Subprime Foreclosures — Distinguishing


Impacts by Loan Category,” Morgan J. Rose, Office of the Comptroller of the
Currency

Discussant: Alan White, Community Legal Services, Philadelphia

10:15 a.m. to 10:45 a.m. Break

10:45 a.m. to 12:00 Noon Are Legislative Remedies to Limit Predatory Lending
Really Remedies?

“The Effect of Prepayment Penalties on the Pricing of Subprime Mortgages,”


Gregory Elliehausen and Michael E. Staten, Financial Services Research Program,
George Washington University, and Jevgenijs Steinbuks, Department of
Economics, George Washington University

“State and Local Anti-Predatory Lending Laws: The Effects of Assignee Liability
and Legal Remedies,” Raphael Bostic, University of Southern California;
Kathleen Engel, Cleveland State University; Patricia McCoy, University of
Connecticut School of Law; Anthony Pennington-Cross, Marquette University;
and Susan Wachter, University of Pennsylvania

Discussant: Michael Calhoun, Center for Responsible Lending

12:00 Noon to 1:30 p.m. Lunch


Guest Speaker:
Mary Lee Widener, President, NHS of America, Inc.

1:30 p.m. to 2:45 p.m. What Determines Who Defaults or Goes Bankrupt?
How Do They Fare?

“The Delinquency of Subprime Mortgages,” Michelle Danis, Office of Federal


Housing Enterprise Oversight, and Anthony Pennington-Cross, Marquette
University


“The Realities of U.S. Personal Bankruptcy Under Chapter 13,” Wenli Li, Federal
Reserve Bank of Philadelphia; Hulya Eraslan, University of Pennsylvania; and
Pierre-Daniel Sarte, Federal Reserve Bank of Richmond

Discussant: Katherine M. Porter, University of Iowa

2:45 p.m. to 3:15 p.m. Break

3:15 p.m. to 4:30 p.m. What Should and Can Be Done to Enhance Borrowers’
Knowledge of Their Credit Risk?

“Consumer Literacy: What Price Perception?,” Marsha Courchane, ERS Group,


and Peter Zorn, Freddie Mac

“Targeting Foreclosure Interventions: An Analysis of Neighborhood Characteris-


tics Associated with High Foreclosure Rates in Two Minnesota Counties,”
Michael Grover, Federal Reserve Bank of Minneapolis; Laura Smith, Macalester
College; and Richard M. Todd, Federal Reserve Bank of Minneapolis

Discussant: Glenn Canner, Department of Research and Statistics, Board of


Governors of the Federal Reserve System

5:00 p.m. to 7:00 p.m. Reception




Friday, March 30, 2007
8:30 a.m. Welcome
Dede Myers, Vice President and Community Affairs Officer,
Federal Reserve Bank of Philadelphia

Opening Remarks
Charles Plosser, President,
Federal Reserve Bank of Philadelphia

9:00 a.m. to 10:15 a.m. Does the Financing of Small Businesses Differ for
Minority-Owned Businesses and for Businesses in
Low-Income Areas?

“Tracing Access to Financial Capital Among African Americans from the


Entrepreneurial Venture to the Established Business,” Alicia M. Robb, University
of California, Santa Cruz, and Robert M. Fairlie, University of California, Santa Cruz

“Commercial Lending Distance and Historically Underserved Areas,” Robert


DeYoung, Federal Deposit Insurance Corporation; W. Scott Frame, Federal Reserve
Bank of Atlanta; Dennis Glennon, Office of the Comptroller of the Currency; and
Peter Nigro, Bryant University

Discussant: Leora Klapper, The World Bank

10:15 a.m. to 10:45 a.m. Break

10:45 a.m. to 12:00 Noon Can Alternative Financial Services Products Help the
Underbanked?

“Strategic Pricing of Payday Loans: Evidence from Colorado, 2001-2005,”


Robert DeYoung, Federal Deposit Insurance Corporation, and Ronnie J. Phillips,
Colorado State University

“Cardholder Use of General Spending Prepaid Cards: A Closer Look at the


Market,” Sherrie Rhine, Federal Reserve Bank of New York; Katy Jacob, The Center
for Financial Services Innovation; Yazmin Osaki, Federal Reserve Bank of New
York; and Jennifer Tescher, The Center for Financial Services Innovation

Discussant: Victor O. Stango, Dartmouth University

12:00 Noon to 1:30 p.m. Lunch


Keynote Speaker: Ben S. Bernanke
Chairman, Board of Governors of the Federal Reserve System


Conference Registration
Date: March 29-30, 2007

Location: Capital Hilton Hotel, 1001 16th St. N.W. (corner of 16th and K streets)
Washington, D.C. 20036

Cost: $375 for individual registration received by March 2, 2007


$425 for individual registration received after March 2, 2007

Cancellations: Refunds, less a $100 processing fee, will be made if cancellation notice is
received by March 16. No refunds will be made after the date.

Hotel Reservations
A block of rooms has been reserved at the Capital Hilton Hotel. You must register by March 2 to get
the special rate of $229 per night single occupancy or $249 double occupancy (plus tax). To receive
the special rate, please mention that you are attending the Board of Governors of the Federal Reserve
conference.

To reserve a room: Please contact the hotel at:


Hilton National Hotel Reservations
Phone: 1-800-445-8667

Parking: Valet parking by the hotel is available at the rate of $35 per day for overnight
guests. This includes in and out privileges.

You can register three ways:


1. Online at www.federalreserve.gov/communityaffairs/national
2. Fax the form to (202) 736-1900
3. Mail your check and registration form to:
Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
Mail Stop 803, 20th & C streets, N.W., Washington, D.C. 20551
Attn: Capria Mitchell-Scott

Name (and name for badge if different)________________________________________________________________________

Title________________________________________________________________________________________________________

Organization________________________________________________________________________________________________

Address_____________________________________________________________________________________________________

City_____________________________________State______________________________________ZIP______________________

Phone___________________________________Fax__________________________________________

E-mail address_________________________________________________________________________

Please indicate the conference fee you will be paying:


$375 individual registration received by March 2, 2007
$425 individual registration received after March 2, 2007

Refunds, less a $100 processing fee, will be made if cancellation notice is received by March 16, 2007.
No refunds are available after that date.

You may pay by check or credit card:

Enclosed is a check for $___________payable to the Board of Governors of the Federal Reserve System.

Charge to Visa MasterCard Discover

Card number______________________________________________Expiration date____________________________________

Authorized signature_____________________________________________________


Both government policymakers and community develop-
ment organizations need the reality check that only
hard data can provide. To know whether our policies
and programs are delivering the desired results, we need
to be able to measure inputs and outcomes, program by
program and community by community.

Federal Reserve Chairman Ben Bernanke


April 20, 2006