The City Council passed the Municipal Depository ordinance for 2024 after a hearing in Committee on Finance. Each year, the City of Chicago enters into a banking relationship with banks who are recipients of the City’s municipal deposits as approved by the Chicago City Council. The latest version of the ordinance comes with several changes to the request for Proposals from banking institutions from the year.
Bank institutions are now required to report expanded types of data in the RFP process including their conventional and F.H.A/V.A. residential home purchase loans on an individual loan basis for residential properties within the City of Chicago: census tract; original loan amount; amount of down payment; effective interest rate; term of loan; purchase price; loan application date; points and fees; secured or unsecured; the amount of each construction loan made on residential properties by census tract; the amount of each home improvement or rehabilitation loan made on residential properties by census tract; and the amount of each residential home refinancing made on residential properties by census tract.
It also requires the City Comptroller to gather info from each banking institution bidder, the lending and deposit information for its home office and for each branch office or facility their residential lending information. Last year we were able to revamp the RFP process and working with the City Comptroller, City Treasurer and Mayor’s Office we expanded the opportunity for smaller banks and credit union associations to become municipal depositories and increase municipal depository investment in local and underserved communities is truly needed and extremely important in bringing more equity, diversity, and inclusion to the Municipal Depository Guidelines. The City reduced collateral requirements from 102% to 100% to encourage smaller institutions to participate. The City will continue to adjust the process to help provide more fair and equitable lending.
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