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Media Release
| For Immediate Release | Contact | Phone |
| August 3, 2006 | Fran Durst, Wachovia Corporation | 908-598-3062 |
| Phyllis Salowe-Kay, NJCA | 973-220-3823 | |
| Paige Carlson-Heim, HCDNNJ | 609-393-3752 x 14 |
Wachovia Commits $8 Billion to New Jersey Community Development
New Jersey Citizen Action, Housing and Community Development Network of New Jersey and Wachovia Create Plan to Meet Low–Moderate Income Needs
Trenton, NJ — Wachovia, the second largest bank in New Jersey with deposits of $23 billion and more than 300 financial centers in the state, will commit more than $8 billion in loans and investments over the next five years to provide mortgage, consumer, and small business loans, as well as multi-family housing and community development loans and capital to the low and moderate income (LMI) community. In addition, the bank will introduce innovative programs, such as a below market rate mortgage product and down payment assistance.
Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action (NJCA) applauds Wachovia's decision. "For the past two years, we have not had a written agreement that reflects a joint effort to lay out ways Wachovia would address the needs of the LMI community," she said.
She continued, "With its pledge to loan and invest $8 billion over the next 5 years, Wachovia has outlined a wide range of programs, products and investments, defined lending criteria, and set specific monetary goals that reflect a real commitment to the citizens of New Jersey. After some hard work, NJCA is proud to be a part of this truly historic announcement."
"Wachovia has a long history of providing financial and human resource capital in our local communities," said Susanne Svizeny, Wachovia's regional president for southern New Jersey, "and we are committed to building strong and vibrant communities in New Jersey. This plan reinforces that priority."
The plan calls for $2 billion in affordable mortgage loans, $50 million in a below market affordable housing mortgage product, $1 million in down payment assistance and $400 million in multi-family housing and community development loans.
According to Pat Morrissy, founder of HANDS, Inc., a community development corporation that is rebuilding neighborhoods in Orange and East Orange, "we can't hope to rebuild our urban neighborhoods and make them good places to raise a family without the active participation of New Jersey's major banks. Wachovia's strong financial commitment to an urban lending partnership with New Jersey's community development financial institutions gives us the power to create the dream of affordable homeownership, stable neighborhoods and thriving communities. They are to be commended," he said.
Also included in the plan is $5 billion in small business loans, $500 million in consumer loans, $35 million in community development investments (including a $3 million in the NJPLAN administered by The Reinvestment Fund, and a $10 million investment to serve community development credit needs for amounts between $250,000 and $2 million. In addition, Wachovia will provide $10 million in contributions and in-kind donations — $3.5 million of which will be directed to community development activities — and $3 million in scheduled grant disbursements from the Wachovia Regional Foundation.
"New Jersey's diverse neighborhoods will be well served by this forward-looking plan," said Paige Carlson-Heim, acting executive director of the Housing and Community Development Network of New Jersey. "Our members stand ready to maximize the investments that Wachovia has dedicated to community organizations, and we look forward to working with the bank to realize our common goal of expanding the reach of community development lending. We are proud to be working in partnership with Wachovia and appreciate their strong commitment to community development and urban renewal," she added.
The plan also addresses the needs of the physically challenged by creating two model centers that are designed to exceed ADA compliance standards. In addition to the services it already offers, Wachovia, as part of its branch refurbishment strategy, will enhance the barrier-free design of its financial centers by providing a teller station in which the counter opens up at purse shelf height, a financial center manager station with a sit-down position, and a check desk with open ends to provide easy access for wheel chair users. Forty three percent of Wachovia's New Jersey ATMs are now audio-assisted, and by the end of 2006, 109 more ATMs with this feature will be added. Also, over the next five years, Wachovia will make available free check writing guides for the visually impaired, which will be available at all branches and from organizations that support the visually impaired.
"Strengthening the communities we serve is at the core of our community strategy," said Lucia Gibbons, Wachovia's northern New Jersey regional president. "We look forward to working with NJCA, the Housing and Community Development Network and other agencies to create greater opportunity for New Jersey's low and moderate income residents."
About Wachovia Corporation
Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, providing 13.4 million household and business relationships with a broad range of banking, asset management, wealth management and corporate and investment banking products and services. Wachovia has retail and commercial banking operations in 16 states with 3,109 offices from Connecticut to Florida and west to Texas and California. Two core businesses operate under the Wachovia Securities brand name: retail brokerage in 49 states and in Latin America, and corporate and investment banking in selected industries nationwide. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. Wachovia had assets of $553.6 billion, market capitalization of $86.0 billion and stockholders' equity of $48.9 billion at June 30, 2006.
The proposed merger with Golden West Financial Corporation (NYSE: GDW), parent of World Savings Bank, is expected to close in the fourth quarter of 2006, pending shareholder and regulatory approval. With this proposed merger, Wachovia would strengthen its position in California, Texas, Florida, New Jersey and New York, and enter attractive metropolitan areas in five additional states: Arizona, Colorado, Illinois, Kansas and Nevada. The combined company would serve banking customers through 3,400 offices in 21 states and Washington, D.C. In addition, Wachovia would gain mortgage lending operations under the World Savings Bank name in 39 states.
About New Jersey Citizen Action
New Jersey Citizen Action (NJCA) is the state's largest independent citizen watchdog coalition representing 60,000 family members and over 110 affiliated labor, tenant, religious, civic and senior organizations.
About the Housing and Community Development Network of New Jersey
The Network represents more than 250 community development corporations and allied organizations who are concerned with providing affordable housing and economic opportunities for low and moderate income families in New Jersey.
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