Community Profile: York, PA MA

Executive Summary

Credit Needs and Other Issues

Credit needs cited during roundtable discussions and interviews in the York, PA MA were:

Affordable small-business loans for low- and moderate-income (LMI) entrepreneurs
Development of affordable rental housing for LMI residents
Mortgages with flexible terms for LMI residents to buy houses
Financing of pre-development costs for community-development projects
According to those interviewed, LMI residents find it increasingly difficult to afford houses in the York, PA area because of the escalating costs for houses and land. This is due, in part, to York, PA's being within commuting distance for employees of companies in Delaware, Maryland, and Washington, D.C.
Banks were generally reported to be very active on the boards of nonprofits and responsive to the community's overall credit needs.
Other issues that were raised include:
- Credit problems arising from the use of rent-a-centers. A web search produced 41 rent-a-centers within a 50-mile radius of the city of York, PA.
- The need for financial-literacy training for LMI people and more visible and active consumer-credit-counseling services.
- Because of the influx of Latinos to the York, PA area (an increase of 118.70 percent from 1990 to 2001), there is a perceived language barrier to accessing banking services as well as a lack of financial literature and bank product materials in Spanish.

Demographics

According to the 2000 US census, the York, PA MA had a population of 381,751.
The racial composition in 2000 was 92.8 percent white, 3.7 percent black, 3.0 percent of Hispanic origin, 0.9 percent Asian, 1.4 percent of other races, and 1.1 percent of people who reported two or more races.
The number of households was 148,219, and the number of families was 105,486.
The median age of York, PA MA residents was 37.8 years in 2000. The median age of Pennsylvania’s residents was 38 years.
According to the 2000 US census, 76.1 percent of the housing units in the York, PA MA, were owner occupied, compared with 71.3 percent for the state of Pennsylvania.
In 2000, 13.5 percent of the population of the York, PA MA was at least 65 years old, compared with 15.6 percent in the entire state.
The year-round vacancy rate in the York, PA MA was 4.8 percent in 2000, compared with 6.2 percent for Pennsylvania.
Despite a gradual loss of jobs, the manufacturing sector still employs 12 percent of the population, with an annual payroll of over $1.5 billion.

HMDA and CRA Loan Data

In 2001, approval rates for applications for government one- to four-unit residential mortgages were lowest for low-income applicants and highest for middle-income applicants. The approval rates for applications for conventional one- to four-unit residential mortgages were lowest for low-income applicants and increased by income category.
In 1999, refinances of existing mortgages represented over half (52.9 percent) of all applications, in 2000, this figure dropped to 42.6 percent, while in 2001, refinances jumped to 59.6 percent of all HMDA applications.
In 2001, approval rates for refinances were appreciably lower than approval rates for home-purchase loans. When sorted by applicant income, they were 36.0 percent for low-income applicants, 47.3 percent for moderate-income applicants, 52.4 percent for middle-income applicants, and 60.9 percent for upper-income applicants. When sorted by census-tract income, approval rates for refinances were 23.1 percent for low-income tracts, 33.4 percent for moderate-income tracts, 55.0 percent for middle-income tracts, and 63.4 percent for upper-income tracts.
Comparing 1999 with 2000 and 2001, approval rates for blacks and Hispanics were generally lower than approval rates for whites, particularly for home-improvement loans. In 1999, approval rates for whites for government, conventional, refinance, and home-improvement applications were 86.3 percent, 76.7 percent, 63.5 percent, and 73.4 percent, respectively, compared with 86.5 percent, 61.8 percent, 53.8 percent, and 41.5 percent, respectively, for blacks, and 91.2 percent, 49.3 percent, 39.7 percent, and 29.0 percent, respectively, for Hispanics.
In 2000, the approval rates for whites for government, conventional, refinance, and home-improvement applications were 83.6 percent, 75.0 percent, 53.0 percent, and 72.4 percent, respectively, compared with 80.0 percent, 52.2 percent, 25 percent, and 32.9 percent respectively, for blacks, and 76.9 percent, 59.3 percent, 31.6 percent, and 32.5 percent, respectively, for Hispanics.
In 2001, the approval rates for government, conventional, refinance, and home-improvement applications for whites were 86.9 percent, 77.4 percent, 71.1 percent, and 67.7 percent, respectively, compared with 81.8 percent, 52.1 percent, 54.8 percent, and 38.7 percent respectively, for blacks, and 83.6 percent, 53.1 percent, 48.5 percent, and 35.5 percent, respectively, for Hispanics.
In 1999, 2000, and 2001, financial institutions reported a total of 17,368 small-business and small-farm loans for which census-tract data were available originated in the York, PA MA. This represented $937,234,000 in financing. During this three-year period, 41.5 percent of the loans were made to businesses and farms with gross annual revenues of $1 million or less, and almost 88 percent of the loans were for $100,000 or less.
The percentage of all small-business loans in the York, PA MA that were originated in LMI census tracts was 11.9 percent in 1999, 11.3 percent in 2000, and 13.9 percent in 2001.

Financial Institutions

In 2001, 331 lenders reported originating 19,100 HMDA-reportable loans totaling $1,723,321,000 in the York, PA MA. Allfirst Bank, with 106,166 loans representing 8.4 percent of the market, had the most originations. National City Mortgage Company ranked first in total dollar amount with $159,071,000, representing 9.2 percent of the market.
In 2001, 128 lenders reported originating 916 HMDA-reportable loans totaling $46,907,000 in low- and moderate-income census tracts of the MA. A1lfirst Bank, with 73 loans representing 8.0 percent of the market, had the most originations and also ranked first in total dollar amount with $2,923,000, representing 6.2 percent of the market.
In 2001, 219 lenders reported originating 4,840 HMDA-reportable loans totaling $306,674,000 to low- and moderate-income borrowers. Allfirst Bank, with 409 loans representing 8.5 percent of the market, had the most originations. National City Mortgage Company ranked first in total dollar amount with $24,486,000, representing 8.0 percent of the market.
In 2001, GE Capital Financial, Inc, with 1,036 loans representing 14.3 percent of the market, originated the most small-business loans in the MA. Allfirst Bank ranked first in total dollar amount with $60,245,000, representing 14.8 percent of the market.
In 2001, First Union National Bank, with 26 loans representing 28.0 percent of the market, originated the most small-farm loans in the MA and also ranked first in total dollar amount with $3,856,000, representing 36.2 percent of the market.

Community Organizations

The York, PA MA has a number of organizations devoted to affordable housing for LMI families, economic development and job creation, and/or provision of social services to LMI households and families. Several of the organizations and their programs are outlined more fully in CHAPTER IV.

Financing Programs

There are many public and private financing programs available for affordable housing and economic development that could be used in partnership to further goals for affordable housing and economic development. The programs are outlined more fully in CHAPTER V.

Chapter I: Demographics

Chapter II: HMDA and CRA Loan Data

Home Mortgage Disclosure Act (HMDA) Statement Data

An important source of information about financial institutions’ lending patterns in a community is the Home Mortgage Disclosure Act (HMDA) statement. This report is submitted annually to the Federal Financial Institutions Examination Council (FFIEC) and is available to the public for each reporting institution. The types of loans that must be reported are home-purchase loans, for both owner-occupants and nonoccupants; refinancings; home-improvement loans; and loans for improvement and/or purchase of multifamily structures (five or more units). Depository institutions that had at least $32 million on December 31, 2001, and a home or branch office in an MSA must file this report.

CRA Small-Business and Small-Farm Lending Data

Starting in 1996, the nation's financial institutions began reporting small-business and small-farm loans as part of their CRA disclosure statements required under the revised CRA regulations. While the information does not have the level of detail of the HMDA statements, it is an important source for understanding commercial lending activity in a community. The types of loans reported include all originations and purchases of commercial loans, lines of credit, and mortgages on nonresidential properties. The loans are reported by size, by geographic location, and for borrowers with annual revenues of $1 million or less. These categories of loans include those with guarantees, such as those provided by the SBA or USDA. Small-farm loans are reported in the same way.

Chapter III: Financial Institutions

Chapter IV: Community Organizations

This chapter provides summaries of nonprofit organizations devoted to affordable housing, economic development, and provision of social services. Each organization listed has a service area that includes part or all of York, PA County. Inclusion here does not represent an unqualified endorsement of these organizations by the Federal Reserve Bank of Philadelphia. Rather, it suggests that a financial institution seeking to conduct outreach in the community consider approaching these organizations to determine mutual areas of interest and activity.

They are arranged alphabetically by type of activity.

Affordable Housing

Economic Development

Social Services

Crispus Attucks Association, Inc.

Chapter V: Special Credit Enhancement/Financing Programs

This section of the profile contains a grid describing credit enhancement/financing programs available to area banks to provide financing for housing, small businesses, and economic development. The grid is divided into geographically specific and regionally applicable programs. For affordable-housing programs, the order is national, Pennsylvania, York, PA County, and city of York, PA. For small-business and economic-development programs, the order is national and Pennsylvania.