Mitria Spotser, federal policy director at the nonprofit Center for Responsible Lending, said small minority-owned banks, credit unions and nonprofit organizations are increasingly important mortgage providers in minority and low-income neighborhoods. Policymakers and bank regulators should encourage their work, both with increased federal CDFI funding and with continued pressure on larger banks to buy mortgages from them, she said. “We need to continue to encourage this support by larger financial institutions of smaller nonprofits who are doing that work,’’ she said.
