PNC Bank Renews Mortgage-Lending Commitment To Low And Moderate Income

NJBIZ — Tuesday, August 31, 2010

By João-Pierre Ruth

On Tuesday, PNC Bank, New Jersey Citizen Action, and the Housing and Community Development Network of New Jersey jointly announced the signing of a three-year community reinvestment agreement by PNC for nearly $1 billion.

"In these times of banking uncertainty, it's great to have a bank that came to [the] table on its own to negotiate an agreement like this," said Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action.

She said the reinvestment agreement includes below-market-rate mortgages, discounted improvement loans, construction financing, small-business lending and grants.

She said including a previously completed commitment, PNC Bank will have invested more than $2 billion over the three-year period.

Salowe-Kaye said a renewal of a similar type of commitment will be sought with Sovereign Bank; a current reinvestment agreement expires in January. "After Labor Day, we are going to begin to negotiate an agreement with them," she said. Similar talks with Sun Bank, in Vineland, also will begin soon, she said. "The hope is that these [agreements] will be in place by the beginning of the new year," Salowe-Kaye said.

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