TD Bank has devoted about $20 billion to programs that serve diverse and minority communities, with a large chunk going to support residential lending.
Half of the designated funds are classified for residential lending for low- and moderate-income and/or minority borrowers, according to a press release.
This includes both first-time homebuyer and home equity loans, and particularly targets the Boston, Baltimore, D.C., New York, Miami, and Philadelphia markets.
“At TD Bank, we know our success is tied directly to the people and the communities we serve. When they flourish, we succeed,” said Leo Salom, President and CEO.
“One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income, diverse, and underserved communities achieve their financial goals. Our Community Impact Plan is designed to achieve that vital role as we build on TD’s long-term community focus.”
The rest of the funds will go to community lending and investment ($7.5B), small business lending ($2.8B), and CRA-related philanthropy ($70MM).
The plan was crafted with the National Community Reinvestment Coalition and will be available in communities across the 15 states the bank currently operates in, rolled out over three years.
“Every bank should set ambitious goals for supporting underserved communities,” said Jesse Van Tol, NCRC President and CEO.
“Those efforts can only be effective if they are informed by the input of community leaders like NCRC and our members. TD listened and then delivered this new Community Impact Plan to help ensure its investments and programs are aligned to community needs.”
Homeownership boosts the economic value of both individual borrowers and their communities. It is the primary driver of intergenerational wealth in the U.S.
Borrowers in historically underserved communities are more likely to be shut out of those benefits, however, due to discrimination and unequal access to lending. There are three times more un- or underbanked Black Americans than white, for example.
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