New home sales among the “50 Top-Selling Master-Planned Communities” increased by 7% in the first half of 2023 compared to the same period in 2022, according to a study by RCLCO Real Estate Consulting.
Master-planned communities have been gaining steam since their invention in the 1960s. Usually built by one developer, they are large, custom-built residential communities that include a number of recreational amenities for residents.
In the sales ranking, The Villages, a retirement community located in Central Florida, was the top-selling community in the country, with an estimated 1,960 sales in the first six months of 2023. It was the same exact number of sales as recorded at this time in 2022.
Florida’s Lakewood Ranch claimed the second spot with 1,227 sales, a 20% increase over last year at this time. Sunterra, located just outside Houston in Katy, Texas, came in third with 669 sales, 49% increase in sales since last year.
D.R. Horton, the country’s largest national homebuilder, appeared on the list four times. All of its communities were in Texas. Land Tejas, owned by Starwood Capital Group, appeared on the list three times and was the developer behind Sunterra.
Houston was the top-performing metropolitan area with 14 communities in the Top 50, representing over 5,000 sales, or almost 26% of all sales among ranked MPCs. The state of Florida represented about 42% of sales among ranked communities, followed by Texas at nearly 38%.
This uptick in MPC sales represents a turnaround, pointing to the strength of the new home sales market. Recently, homebuilders have been feeling very confident and permit demand for future construction rose to a 12-month high in June on the weakness of the existing home sales market and low inventory.
Most MPC developers remain optimistic about the second half of 2023, according to RCLCO. In spite of elevated interest rates and a looming recession, developers remain confident that MPCs will preserve their strong appeal for consumers. However, while some builders have pulled back on incentives, about 60% are still using incentives to stimulate new home sales.
RCLCO has conducted a national survey identifying the top-selling master-planned communities (MPCs) since 1994. Each year, the consulting firm reports the annual sales among the Top-50 communities at the end of the year, and publishes its mid-year update in July.
In our latest real estate tech entrepreneur interview, we’re speaking with Garret Flower from ParkOffice.
Who are you and what do you do?
My name is Garret Flower, I’m the co-founder and CEO of ParkOffice – the parking software for smart offices. I’ve been an entrepreneur for almost as long as I can remember. I started my first business at 15 and have progressively been getting more and more ambitious ever since.
Currently I split my time between New York City and Dublin where I’m managing the rapid growth of ParkOffice in both Europe and the US. We started out a couple of years ago with ParkOffice with a very simple concept – employee parking was broken and we wanted to fix it.
Our progress in such a short space of time has been really energising, we’ve developed an industry leading product which is trusted by 6 Fortune 500s and countless SMEs in 13 countries across the globe.
What problem does your product/service solve?
Office parking is dysfunctional on so many levels.
The end experience is often incredibly frustrating as employees arrive at offices to find parking lots unexpectedly full or worse, they pay for parking off-site and walk to the office through a half-empty car park.
The management experience isn’t much better, facilities managers often complain that managing parking is the most time intensive part of their job and that no matter how hard you try you will still be inundated with complaints from disgruntled employees.
From a community perspective, according to research from UCLA, every time someone sits into a car and doesn’t know if they have a space at work or not, they will spend an extra 800m cruising at their destination looking for somewhere to park. This causes massive traffic issues in neighbourhoods close to large offices.
ParkOffice gives a fully automated solution which allows companies to solve all these problems while also reducing costs and carbon emissions in the process.
What are you most excited about right now?
When you look at the figures there is almost as much space in the USA dedicated to office parking as there is to office buildings. However, in most cases, it is a massively under-utilized piece of real estate.
The average company who believes they don’t have enough parking space actually have up to 40% of their parking spaces empty during the working day. This is often caused by people working from home, being off-site at meetings or being on holidays. What a waste of space and money.
In a world where our cities are running out of space, I’m incredibly excited about how technology can be used to park cars more effectively, freeing up whole swathes of space for cities across the world to grow.
We’ve just adapted our product to tackle the issues surrounding COVID-19. Over recent years our key focus has been on supporting companies to reduce their employees car dependency.
With COVID-19 changing the business environment for companies all over the world, we knew we had to innovate to thrive. By altering our product slightly we can now help companies return to the office safely sooner. With public transport a no-go area for many people who are worried about the virus, employee parking is going to be under greater pressure than ever. Our automated solution can monitor parking availability in real-time and assign spaces to those in most need – think of it like hot-desking but for parking spaces. The beauty is that we can increase parking availability by up to 40% for companies.
What’s next for you?
The USA is a massive focus for us – we’ve been lucky to pick up a few big clients over there but we’re opening up a full-time office over there in the next 6 months to accelerate our growth.
What’s a cause you’re passionate about and why?
Racism really angers me. I feel strongly that all people were created equal, and this world is unfortunately structured in a way which disadvantages swathes of people because of their gender and race. As half-American, half-Irish, I’m acutely aware of the disadvantages many of my ancestors had to overcome to lay the foundations for me to thrive. I’m always looking for ways in which I can pave a path for minorities to lay the way for their communities to flourish. It is my job as a CEO and a leader of ParkOffice to encourage an environment of inclusion to learn how to implement policies that will correct this inequality.
Thanks to Garret for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
The Southern California median sales price slipped for the first time this year after holding steady for the first three months of 2009, DataQuick reported today.
The median price paid for a Southland home was $247,000, down 1.2 percent from $250,000 in March, and well below the $385,000 median seen a year earlier.
The median is now at its lowest point since February 2002, and 51.1 percent below the $505,000 peak seen in the spring and summer of 2007.
However, most of today’s home sales involve discounted foreclosures, while very few high-end homes are selling, so the median’s decline has been exaggerated.
“In many markets we’ve seen signs you’d expect to see not long before prices would normally stabilize: robust investor and first-time-buyer activity, 10-plus months of year-over-year sales gains, and less price erosion, if any,” said John Walsh, MDA DataQuick president, in a release.
“The problem is that we still face two big threats to price stability: layoffs, which can cause foreclosures across the home price spectrum, and possibly a new round of foreclosures triggered by defaults on ‘option ARM’ and ‘stated income’ loans used in mid-to high-end markets.
A total of 20,514 new and resale houses and condo were sold last month in six Southland counties, up 5.2 percent from March and 31.4 percent from a year ago.
Foreclosure sales accounted for 53.6 percent of resales, the seventh consecutive month in which post-foreclosure properties made up more than half of resale activity.
Meanwhile, builders sold the lowest number of newly constructed homes last month for an April since at least 1988.
Sales were at or near record highs for an April in hard-hit inland communities like Palmdale, Lancaster, and Victorville, while high-end coastal communities’ sales remained at or near record lows.
Last month, jumbo loan financing accounted for just 10.9 percent of sales, while FHA loans financed a near-record 39.1 percent of home purchases.
Northwestern Mutual kicks off #LemonTopChallenge in honor of childhood cancer patients and survivors The company has donated more than $30 million to Alex’s Lemonade Stand Foundation to accelerate the search for better treatments and cures MILWAUKEE, July 24, 2023 /PRNewswire/ — Northwestern Mutual is kicking off a unique social media challenge today to generate awareness … [Read more…]
Nearly a century ago, Congress created the Federal Home Loan Bank system (FHLBs) to promote home ownership and provide liquidity to thrifts (savings and loans) and insurance companies that primarily provided mortgages at that time. Today’s financial system is radically different: Thrifts are synonymous with banks; mortgage lending originates from within and beyond the banking system; and securitization has become the driving force for liquidity in the housing finance marketplace. In light of these systemic changes, it is time to reassess the purpose and mission of the FHLBs. Their regulator, the Federal Housing Finance Agency (FHFA), has launched a comprehensive review.
The Brookings Institution’s Center on Regulation and Markets, Boston University’s Review of Banking & Financial Law, and Boston University School of Law co-hosted a forum to discuss and debate how the FHLB system is working, what its mission should be, and what reforms, if any, should be undertaken. We heard from a wide range of experts, including current FHFA Director Sandra Thompson, former FHLB regulators, affordable housing advocates, and leading academics and researchers. Here are four key take aways from the event, which can be watched in full here.
1. Are the Federal Home Loan Banks focused on their mission to promote housing?
The homeownership rates for white households was 75%, compared to 45% for Black households
Supporting housing finance is the original purpose of the FHLB system, but there is no requirement that members use FHLB advances to promote housing. Lisa Rice, president and CEO of the National Fair Housing Alliance, described the mortgage market system’s problematic institutionalized preference toward white Americans, noting that mortgages were not “made universally available to people… [these policies] systematize the association between race and risk in our financial markets that is still with us today.” She called on the FHLBs and the broader housing finance system to prioritize reducing the racial disparity in homeownership. In the second quarter of 2022, the homeownership rates for white households was 75%, compared to 45% for Black households, according to the Department of Treasury. At nearly 30 points, the racial homeownership gap is higher today than it was in 1960. She cited small mortgage loans (under $150,000) and special purpose credit programs as models to be promoted.
Ms. Rice urged “bold,” not “incremental,” change for the FHLBs while Kathryn Judge, Harvey J. Goldschmid Professor of Law and vice dean at Columbia Law School, called this an “exciting moment” for rethinking the role of the FHLBs.
Panelists brought up the case of Silvergate Bank, a bank that primarily supports cryptocurrency actors which borrowed heavily from the FHLB system, particularly in recent times of stress, as an example of how the FHLB system’s focus has strayed far from housing. The conversation highlighted that the FHLBs focus on the type and quality of collateral for their advances rather than the purpose for which the banks use those advances.
Those advances generate profits and the FHLBs have long been required to pay a share of their profits toward affordable housing through the Affordable Housing Program (AHP) they administer. Luis Cortes, founder and CEO of Esperanza and a former member of the FHLBank of Pittsburgh’s board of directors, asserted that FHLB provisions do not go far enough, stating that the current rate of 10% of profits for AHP amount to “getting gamed by the membership,” given the value the FHLBs provide to their members. He stressed that the role of government is not recognized and that a 50/50 partnership is in order. George Collins, former chief risk officer for the FHLBank of Boston, agreed, citing an annual government subsidy of $5-$6 billion for the FHLBs shifting the burden of progress onto member banks. “I really think that it’s in the best interest of the members to jump forward here … because the members get a lot of benefit from the home loan bank system.”
Julieann Thurlow, president & CEO of Reading Cooperative Bank in Massachusetts and chair-elect of the American Bankers Association, raised another key purpose of the FHLB system: to promote community banks and their ability to lend and serve locally. She discussed the value FHLBs provide to community banks, stating: “It is foundational as far as a liquidity source.” The mortgage market structurally has moved toward commoditization whereby mortgages are originated by national lenders (often non-banks), sold into securities, and then serviced by for-profit specialized servicing companies. Thurlow pointed out the value that community banks bring, as individuals can “walk through the front door of a community institution,” not resorting to a 1-800 number. One of the many lessons of ‘08 Financial Crisis and housing market disaster is that just originating a mortgage is insufficient, unless that mortgage is sustainable, which requires adequate resources should the borrower encounter financial difficulty.
2. Are the FHLBs properly regulated?
Congress created the FHFA to better regulate the FHLBs during the midst of the financial crisis in 2008. FHFA replaced the Federal Housing Finance Board, whose former chairman Bruce Morrison, made the point that a government-sponsored entity (GSE) “…should not exist unless they have a clear public purpose, and they perform that purpose … it’s not good enough that they’re safe and sound.”
Professor Judge built upon this point, connecting the recent Silvergate lending episode to questions about whether FHLB regulation even considers what purpose banks are using the GSE subsidy for: “[This] might actually not have been a failure of supervision, which begs a much bigger question about the mission drift … supporting a bank that could corrupt the perception of safety and soundness of banking system generally.” She posed the question of how access to FHLB liquidity may have influenced the risk appetite of Silvergate. This exposes the tension between the FHLB system and the Federal Deposit Insurance Corp (FDIC) as the ultimate guarantor of system advances.
“Total avoidance of bank failure is not necessarily a good thing”
The FHLB system is designed to provide liquidity for its members, but due to the FHLB’s super-lien priority over the FDIC, they can shift any lending losses to the FDIC’s deposit insurance fund when a member bank fails. Brookings’s Aaron Klein argued that total avoidance of bank failure is not necessarily a good thing, as some banks that make bad business model decisions deserve to fail. He cited a paper by fellow panelist Scott Frame, Vice President of theFederal Reserve Bank of Dallas, “The Federal Home Loan Bank System: The Lender of Next-to-Last Resort?” as evidence that the FHLB system acted as a lender-of-first-resort to some of the largest originators of subprime mortgages who eventually failed (or would have failed) during the housing and financial crisis of 2007-2009, IndyMac being the prime example. Frame commented that the regulatory problems remain, saying “The primary regulators don’t have any particular say, certainly about any specific advance or anything. This is a business arrangement between the members and their home loan bank.”
Former FHFA Director Mark Calabria, who helped write the law creating FHFA while a senior staffer for Senator Richard Shelby (R-AL), noted the structural limitations of the current regulatory structure: FHFA regulates the FHLBs, but FHLB members are regulated by federal and state banking regulators and state insurance regulators. This was not always the case. Until the 1980s, as the prior regulator of FHLBs, the FHFA also regulated thrifts who were then the major members of the FHLB system (along with insurance companies). This raises questions of inter-regulatory coordination, particularly between liquidity lenders such as the Federal Reserve and FHLB, supervisors, and the FDIC as receiver of failed banks.
3. What reforms should be made?
Michael Stegman, from the Urban Institute, observed that considering executive compensation at the other GSEs may prove fruitful. “The GSEs have a scorecard where performance is tied to … mission-critical activities … we ought to think about how that kind of incentive … can influence compensation.” Klein agreed with Stegman’s idea on executive compensation. He added three ideas: restricting banks to membership in a single FHLB; a restriction on how much one FHLB can lend to a single member; and greater FHLB participation in supporting lending for projects that fill the gap between five to 49 units and mixed-use development. Dennis Shea, executive director at the J. Ronald Terwilliger Center for Housing Policy, stressed that regulators should do more about housing supply. “This area of five to 49 multi-family [housing], which has been traditionally underfinanced, is a worthwhile idea.” Furthermore, on the issue of transparency, Shea asserted that a government assessment of the value of the taxpayer subsidy provided to the FHLBs and their members and the public benefit they provide would prove helpful.
“Regulators should do more about housing supply”
Megan Haberle, senior director of policy at the National Community Reinvestment Coalition, called for greater regulatory clarity on advances, stating: “Not only tracking the advances, [but] attaching stronger strings to them … we want to make sure the advances are attached to that core purpose.” She also called for expanding usage of Community Reinvestment Act (CRA) performance by the FHLBs as well as performance for first time homebuyer support, nothing that under current law many members of FHLBs such as insurance companies and mortgage businesses are not covered by CRA.
Mr. Stegman advocated that GSEs, should not be able to lobby, citing the $3 million spent in lobbying fees in 2021. He also proposed mandating member banks use the community investment program advances to support affordable housing initiatives. The myth of “zero public subsidy” of the FHLBs needs to be dispelled, he said, citing the six notches that the credit rating agencies ascribe to the implied taxpayer support of FHLB debt.
4. View from the top
In the keynote fireside chat, Boston University’s Cornelius Hurley interviewed Director Sandra Thompson regarding the FHFA’s review of the FHLBanks’ mission, as well as proposed recommendations for the future. Director Thompson agreed that member banks could do more to promote affordable housing. “They’re fulfilling their liquidity prong very well, but with regard to affordable housing and community investment … they could do better.”
Responding to Mr. Hurley’s question asking whether taxpayers are “stakeholders” in the FHLBanks, Director Thompson responded, “Absolutely,” citing the implied taxpayer guarantee of all FHLB debt and their exemption from paying taxes among the reasons. She also said, “The status quo is not acceptable.”
“The status quo is not acceptable.”
Mr. Hurley inquired about board composition and executive compensation, asking if FHFA can ‘pull any levers’ in the area. Director Thompson directed her answer about executive compensation to the forthcoming report and its recommendations, which will include both legislative and regulatory recommendations. Regarding compensation, she mentioned that she did not set executive compensation levels or ranges but that she has the authority to deny. She offered insight about what diversity in board composition looks like. “When we talk about diversity, not only is it just race, gender diversity, but it’s also diversity with some of the board members and their experiences,” citing an example about representation in districts that have significant tribal communities.
Next Steps: FHFA is continuing its listening sessions and roundtables and has invited comments to be submitted by March 17, 2023. The Review of Banking and Financial Law will be publishing further materials dedicated to proposals on FHLB reform. The call for papers can be found here.
The Brookings Institution is financed through the support of a diverse array of foundations, corporations, governments, individuals, as well as an endowment. A list of donors can be found in our annual reports published online here. The findings, interpretations, and conclusions in this report are solely those of its author(s) and are not influenced by any donation.
The Southern California median sales price slipped for the first time this year after holding steady for the first three months of 2009, DataQuick reported today.
The median price paid for a Southland home was $247,000, down 1.2 percent from $250,000 in March, and well below the $385,000 median seen a year earlier.
The median is now at its lowest point since February 2002, and 51.1 percent below the $505,000 peak seen in the spring and summer of 2007.
However, most of today’s home sales involve discounted foreclosures, while very few high-end homes are selling, so the median’s decline has been exaggerated.
“In many markets we’ve seen signs you’d expect to see not long before prices would normally stabilize: robust investor and first-time-buyer activity, 10-plus months of year-over-year sales gains, and less price erosion, if any,” said John Walsh, MDA DataQuick president, in a release.
“The problem is that we still face two big threats to price stability: layoffs, which can cause foreclosures across the home price spectrum, and possibly a new round of foreclosures triggered by defaults on ‘option ARM’ and ‘stated income’ loans used in mid-to high-end markets.
A total of 20,514 new and resale houses and condo were sold last month in six Southland counties, up 5.2 percent from March and 31.4 percent from a year ago.
Foreclosure sales accounted for 53.6 percent of resales, the seventh consecutive month in which post-foreclosure properties made up more than half of resale activity.
Meanwhile, builders sold the lowest number of newly constructed homes last month for an April since at least 1988.
Sales were at or near record highs for an April in hard-hit inland communities like Palmdale, Lancaster, and Victorville, while high-end coastal communities’ sales remained at or near record lows.
Last month, jumbo loan financing accounted for just 10.9 percent of sales, while FHA loans financed a near-record 39.1 percent of home purchases.
“The Underserved Mortgage Markets Coalition (UMMC) has long advocated for a rule making on the Equitable Housing Finance Plans and the undersigned coalition members are pleased to see a proposed rule to ensure the longevity of the EHFPs,” said the UMMC, which counts 29 member organizations as part of its collective. “The coalition has long expressed that for the EHFPs to be effective and to continue after this administration, it is critical that FHFA promulgate a rule that will be closely modeled on FHFA’s “Duty to Serve” (DTS) regulation and create a pattern of practice of releasing similarly robust amounts of the EHFP performance data.”
The UMMC and other groups have for months been lobbying FHFA Director Sandra Thompson to discuss formalizing the equitable housing finance plans.
Following multiple revisions, the GSEs in early April announced updates to the equitable housing finance plans, which included Freddie Mac expanding special purpose credit programs, increasing the availability of accessory dwelling units (ADUs) and manufactured homes, as well as the launch of a correspondent lending program to assist smaller financial institutions with access to Freddie Mac’s multifamily financing.
For Fannie Mae, it too is looking to expand the special credit purpose programs geared toward helping people in majority Black and Latino communities. Fannie also touted a “social index” to help translate investor interest in socially conscious investing into savings for underserved borrowers and its series of changes to valuation modernization, which it says will reduce bias, improve accuracy and reduce costs.
Industry stakeholders have 60 days to comment on the proposed rule.
The ACRE Act would provide access to low-interest home and farm loans to borrowers in nearly 390 rural Maine towns.
MAINE, USA — People across the country and here in Maine face severe difficulties affording housing due to the higher cost of living, rising interest rates, and housing shortages.
In the wake of the housing crisis, Senators Angus King (I-Maine) and Jerry Moran (R-Kan.) introduced the Access to Credit for our Rural Economy (ACRE) Act of 2023 that would give borrowers in rural towns across the U.S. access to low-interest loans when purchasing a home or farm.
Senator Angus King said, “It has simply gotten way too hard to find reasonably priced homes in our small towns.”
The legislation would make home and farm ownership more affordable for approximately 311-thousand people living in about 390 rural towns in Maine, according to 2020 Census data.
“There’s no one easy solution to our housing affordability problems, but this bipartisan effort would be an important step forward. I appreciate Senator Moran’s partnership and hope we can get this bill passed for rural communities like those in Maine and Kansas,” Senator King added.
The ACRE Act would work by giving small community banks access and flexibility to provide affordable low-interest loans and mortgages to their rural community borrowers.
“High inflation and rising interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country,” said Sen. Moran.
“The ACRE Act will help Maine people and farmers in rural communities, and we’re grateful for Senator King’s support.”, said Jim Roche President of the Maine Bankers Association.
There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
While many may have familiar-sounding job titles, some have ventured off the beaten path and pursued unique careers. Despite the unconventional work, there are a plethora of lucrative job opportunities available. In this article, we’re exploring some weird, high-paying jobs worth considering.
1. Bereavement Coordinator
A bereavement coordinator is tasked with assisting families who have terminally ill or recently passed loved ones. Their responsibilities include overseeing administrative tasks, scheduling appointments, managing funeral arrangements, and supervising staff and volunteers to alleviate the burden on grieving families.
Offering Words of Wisdom
Additionally, a bereavement coordinator may also arrange counsel for those who are struggling with grief. This role often involves working in hospitals, nursing homes, or hospice settings and can be considered a type of counseling service.National Average Salary is $47,660
2. Online Dating Ghostwriter
An online dating ghostwriter is a professional who writes online dating profiles on behalf of clients. This individual is responsible for creating an engaging and attractive online dating profile that accurately reflects their client’s personality and interests. The ghostwriter must have strong writing skills and be able to craft a compelling narrative that highlights the client’s best qualities.
Matchmaker, Matchmaker
They may also assist with messaging and communication with potential matches. The goal of an online dating ghostwriter is to help their clients stand out in a crowded online dating market and increase their chances of finding a compatible match. The national average salary is $54,204 per annum.
3. Art Therapists
Art therapy is a unique profession that blends the principles of therapy with the creative process of art. Art therapists utilize various forms of artistic expression to aid patients in their healing journey. By reducing stress levels and enhancing self-esteem, art therapy can help improve overall mental health. This therapy is particularly useful when individuals have difficulty expressing themselves verbally.
Wisdom and Creativity
Becoming an art therapist requires a background in psychology or counseling and specialized training in art. Art therapists have the flexibility to work in a variety of settings, including schools, communities, and private practices. Companies can even hire them to help employees manage stress and improve their mental well-being. The National average salary is $58,139.
4. Flavorist
As a Flavorist, your primary responsibility would involve developing both natural and artificial flavors. To accomplish this task, you must possess a wealth of knowledge regarding essential oils, botanical extracts, flavor aromas, and essences in order to replicate natural flavors accurately.
Education… and Good Taste
Additionally, you would be tasked with inventing new and captivating flavors that appeal to consumers. This highly specialized profession necessitates a Ph.D. in chemistry or biochemistry, along with extensive apprenticeship experience with flavor companies. The National average salary is $60,640.
5. Color Designer
The role of a color expert involves utilizing color psychology, trends, statistics, and theory to recommend optimal color schemes for various settings, including homes, company buildings, brand logos, and more. As a color expert, you would be responsible for creating layouts and designs for a variety of purposes, such as branding, interior design, and architecture.
Think Outside the Box
A college degree is not typically required for this position, although specialized training is necessary. Additionally, possessing a creative and innovative mindset can be beneficial when pursuing a career as a color expert. The National average salary is $61,554 per annum.
6. Veterinary Acupuncturist
Veterinary acupuncture is a form of alternative medicine that involves using techniques similar to those used in human acupuncture to treat animals. As a veterinary acupuncturist, your primary objective would be to provide non-surgical and non-pharmaceutical treatments to animals using methods such as needle insertion, massages, blood-moving approaches, frequency approaches, and polarity devices.
A Big Heart
In order to pursue a career in this field, you would need to acquire the necessary training and certification in acupuncture. Furthermore, genuine love and compassion for animals would be crucial to succeed in this role. The National average salary is $69,167 per annum.
7. Equine-Assisted Therapy
An equine therapist is a profession that merges horseback riding with therapy to help both children and adults. This therapy involves using horses to provide patients with physical and emotional benefits. To pursue this career, you would need to be a certified therapist with extensive knowledge of various disabilities, as well as experience working with horses.
Ready to Ride
Hippotherapy has proven to be an effective method to improve recreational activities, socialization, and interactions with other patients. As a hippotherapist, you would be a valuable member of a team of experts responsible for designing customized plans and objectives for each patient. National average salary is $74,434 per year.
8. Toy Designer
A toy designer is a professional who creates toys that are not only fun but also safe for children to play with. This role may also be referred to as a product designer or toymaker, and it requires a keen artistic and imaginative sense. Toy designers must have a good understanding of materials to create toys that do not pose any safety risks to children. They should also have the ability to design toys that are sturdy and easy to maintain.
Are You a Tinkerer?
In addition, a love for gadgets and proficiency in mechanical skills are highly desirable traits. To pursue a career as a toy designer, you would need to earn a degree in the arts, such as a design degree. Furthermore, proficiency in CAD and engineering skills would be necessary to succeed in this field. The national average salary is $74,913 per year.
9. Podiatrist
A podiatrist is a healthcare provider who specializes in the examination, diagnosis, and treatment of conditions affecting the feet, ankles, and lower legs. They are also qualified to perform surgeries on these body parts.
Take Good Care of Feet
Podiatrists possess the expertise to detect and manage abnormalities in the feet, prevent and correct deformities, and alleviate foot pain and infections. To pursue a career as a podiatrist, you would need to obtain a degree from an accredited podiatric medical college. The National average salary is $90,795 per year.
The job market is full of unique, unconventional job opportunities that can offer excellent salaries. Pursuing a career in one of these jobs may lead to a rewarding career path with significant income potential. So, if you’re looking for an exciting and well-paying job, don’t be afraid to explore some of these unique professions!
Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.
10 Actresses People Despise Watching Regardless of Their Role
These 7 Celebrities are Genuinely Good People
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.
10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth
We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.
These 10 Terrible Movies Are Still People’s Favorites