KeyBank, community coalition renew ties with $25M plan

Jesse Van Tol, president and CEO of the Washington, D.C.-based coalition, announced a $25 million agreement with Key to “work together to ensure greater levels of investment in minority and underserved communities.”

The NCRC had worked with Key on developing a $16.5 billion community benefits agreement that the bank rolled out in 2016, in conjunction with its acquisition of First Niagara Bank.

But five years later, the coalition “became concerned about (Key’s) efforts to fulfill the agreement,” Van Tol said at an NCRC conference this week. “It became apparent that their lending had gotten worse, not better. We raised concerns about KeyBank’s lending in minority and underserved communities, and whether it had kept its promise to be a leader in inclusive home mortgage lending.”

The coalition stopped working on extending a community benefits plan with Key, and issued two scathing reports about Key’s lending practices. The coalition claimed Key appeared to “have been engaged in systematic redlining in some cities,” and called for federal regulators to lower Key’s Community Reinvestment Act rating.

Key defended the community benefits plan’s results and the bank’s lending practices, and denied engaging in any discrimination.

Now, the coalition and bank will restore their connection. Key will provide $17 million to fund grants, down payment assistance, fee waivers, product and branch expansion and marketing, designed to expand credit and assist loan applicants in minority and underserved communities.

Key and the coalition will be independently responsible for allocating $8.5 million each from that $17 million, “with meaningful input from the other,” Van Tol said. 

In addition, Key will provide $8…