Two major resources leveraged across the country in support of the community development industry come from the public programs of the U.S. Department of Housing and Urban Development (HUD) and the federal law, the Community Reinvestment Act (CRA). The CRA is a law designed in 1977 to combat discrimination in banking and encourage banks to equitably contribute to financial opportunity and community development across its full service area.

In Memphis, the CRA law has been used to combat discriminatory lending practices that contribute to Redlining in Black and Hispanic neighborhoods. The most notable, following the 2009 housing crisis as subprime mortgage loans caused African American families in Shelby County to lose economic wealth. The most recent federal enforcement of the CRA leading to local settlements were in 2022 and 2024. 

The CRA law encourages banks to engage within communities particularly those with higher concentrations of low to moderate income residents. Oftentimes with Memphis community development partners, banks contribute to community development through their support of the following activities: financial literacy, affordable housing, small business development, and workforce opportunities.

The two national organizations, among several, that BLDG Memphis partners with the most regarding bank relationships with the local community development industry and Memphis residents access to banking are, National Fair Housing Alliance (NFHA) and National Community Reinvestment Coalition (NCRC). Notable mention to Community Opportunity Alliance as a direct support to BLDG Memphis as a community development association.

NCRC

The National Community Reinvestment Coalition is a network of organizations and individuals working to address historic disinvestment of the public and private sector, and a community development financial institution (CDFI) working to improve economic mobility in vulnerable communities across the country. 

Alongside BLDG Memphis the NCRC Members include more than 700 national, state and local nonprofit organizations, community organizing and civil rights groups, minority and women-owned business associations, state and local government agencies, faith-based institutions, and committed, hopeful individuals from across the nation. 

NCRC held their annual Just Economy conference in March. The first day included a Day on Hill advocating for community investment programs to remain as well as funding for CDFIs alongside NCRC members from Tennessee. During the exact week of the pre-planned advocacy the federal government announced plans to,

1. Rescind recently updated, October 24, 2023, rules to the CRA with strengthened protections against discriminatory lending practices.
2. Through executive order "Continuing the Reduction of the Federal Bureaucracy" reducing grants and loans to CDFIs through the CDFI Fund (Community Development Financial Institutions Fund).

The advocacy work has continued at BLDG Memphis as we serve on committees with aforementioned partner organizations and connect with federal representatives in Congress and the Senate to share the impact and continued needs of Memphis neighborhoods in leveraging the rules of the CRA and resources of CDFIs.

Also, through the Just Economy Day on the Hill I met with and welcomed The Housing Fund as a new CDFI operating in Memphis!

Cadence Bank Implementation Committee

With the 2021 merger of BancorpSouth and Cadence Bank, NCRC planned a Merger Committee with its Members in the bank’s service area. The merger committee then became the Cadence Bank Implementation Committee after the now Cadence Bank completed its Community Benefits Plan with NCRC advocacy and convening efforts. With the Community Benefits Plan, Cadence planned to lend or invest $20.7 billion to underserved borrowers and communities over a five-year period beginning in 2022 through 2026.

The bank provides an annual report to NCRC and meets with the 16 members Implementation Committee twice a year on its efforts across states regarding mortgage lending, small business lending, and community development lending; philanthropy; racial equity and DEI; supplier diversity and workforce; and investment in HBCUs.

Alongside the Implementation Committee, I also serve on the Cadence Bank Corporate Community Advisory Council which meet together alongside the Community Benefits Plan.

I have participated on each committee representing BLDG Memphis and our community development association in Memphis.   

Cadence Bank reporting on the Memphis MSA and Tennessee shows the bank is performing in alignment with the goals set, they have also opened a new branch in Raleigh (May 2025). The Memphis MSA has the most Cadence branches of any MSA in the Cadence service area. For more information on the data please email me to obtain access to NCRC data and reporting.

Areas of recommendation the committee shared with the bank include increasing lending performance to LMI borrowers and working with CDFIs and other community development organizations more strategically towards the bank’s goal.

Cadence Bank & Local Community Development Industry Opportunities 

Attending the May convening of the Council, I saw potential opportunities for CDCs and Cadence to launch and or strength partnerships. 

1. As Memphis organizations explore Community Land Trusts, establishing a relationship with a bank should be a top priority. In Austin, TX and Atlanta, GA, Cadence has shared equity products that layer as additional subsidy towards a customer’s mortgage.
2. A growing strategy of local CDFIs that originate mortgage products is for a bank to purchase a bundle of those mortgages. Cadence Bank does not purchase mortgage bundles however they are deploying strategies to make down payment assistance available when partnering with community development mortgage originators.
3. CDC-led resident engagement that partners with the bank to educate customers on bank products. Cadence has several programs that may be of interests to Memphis residents with increased awareness such as Right At Home or Credit Builder loans.
4. In BLDG Memphis meetings, Members may want to hear more from individual banks on their lending goals and performance, as well as products available that would support both community development revitalization efforts and residents economic mobility.

I’m interested to hear your feedback on any of the following. Also, if you interested in a series of BLDG Memphis reporting on our experience or other Member’s experiences and best practices working with local banking.