by Karen on June 30th, 2009
With all the time we spend online it is nice to have the Fourth of July to look forward to. It is a big day for good old in-person cookouts and picnics with friends and family. And there is no better place to get the food you’ll need than your local farmers market. ShoreBank is lucky enough to host a farmers market every Wednesday during the summer in the parking lot of our branch at 71st and Jeffery in Chicago. I stopped by last Wednesday expecting a little dose of food – and while I got that, I also ended up getting a big dose of family.
I had heard of San Diego and San Francisco but…SanJustins? How did I miss them on my last swing through the west coast? SanJustins is a small bakery stand at the farmers market. It is run by Sandy with a lot of baking done by her son Justin (get it? SanJustin). Even her sister was helping her out. Sandy is building her business in Chicago and has her business plan – for now she is three weeks into her first season at a farmers market. She already has loyal customers (one stopped by for her sweet potato nut bread) and she is testing ideas and responding to market feedback (she added banana nut bread without sugar for customers who might be diabetic).
While Sandy may be in her first season, Andy of Blankenship Farms essentially grew up at farmers markets – this one included. Although Andy has had a stand at our farmers market for 6 years, his parents were previously there for over a decade. And as a little boy he came with them so some of Andy’s customers have known him since he was a kid. And this week – cherries should be coming in!
The “all-in-the-family” trend continued at Mark Farm but in a way that surprised me. This farm is in Indiana but the first person I talked to surprisingly lived across the street from the market, on Chicago’s South Side. Gregory was working the stand after his one minute walking “commute.” But he isn’t the first one in his family to make that short walk to work. His father was a Mark Farm customer who later started working there and Gregory has followed, literally, in his footsteps.
So if your local farmers market is full of great family stories too – and I bet it is – there is actually a way you can leverage your digital expertise to help. The site Care2.com is running an online voting campaign on farmers markets. Vote for your favorite and the market with the most votes will get $5,000. Three cheers for the family of farmers markets!
Tags: community development, farmers market, green banking, ShoreBank, social media, triple bottom line
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by Sarah on June 23rd, 2009
President Obama’s recent televised fly swatting impacted more than just the fly. It sparked both PETA to send Obama a device that traps flies for subsequent outdoor release and an online debate across social media sites as to whether or not PETA overreacted. The result may influence whether or not Obama swats again. It is clear that Eco-Activism 2.0 is in full swing but it begs the question ‘can online eco-activism actually make a difference?’
For those people who are unfamiliar with the term ‘Eco-Activism,’ it is used to describe a person, such as Van Jones or Al Gore, who is involved in heightening consciousness and promoting potential behavioral solutions to environmental issues. There are many types of Eco-Activists. The type to which I am referring is rooted in good old fashioned person to person conversations. The more people to whom you speak, the more likely you are to reach the ‘tipping point.’ As the need to ‘go green’ intensifies, so too does our need to spread the world quickly. And what spreads the word more quickly than social media? The problem is to make sure that the word does not just spread online, but that corrective solutions are taken offline.
Two social media websites, 2people.org and changents.com, are designed to enable eco-activists to connect and to form online communities focused on solving environmental problems. 2people.org’s goal is to create a critical mass of activists who will create enough buzz about global warming that it will cause people to do something about it. Its basic social networking features allow people to form activism teams, to create a virtual workspace, and to monitor events, people, and actions in the world. Changents.com then enables Change Agents (Changents) to team-up with a receptive audience of Backers who can respond to, spread, support and consumer their innovations and ideas. They have offline abilities to back a Change agent through Action Requests.
Although still in Beta, in its first year, changents.com has already received 235 action requests for 157 Change Agents. One such Change Agent is the Big Green Bus team – a group of 15 Dartmouth students who are driving a huge green solar paneled veggie-oil powered bus cross-country to bring awareness to how we can all change the reliance on energy. The requested action: that their 122 Backers forward their schedule and message to their friends. Eco-Activism 2.0 is working. The team met with Senator Jeanne Shaheen and House Representative Dave Reichert last Friday.
For those people who are unable to make the time and effort to “change the world,” supporting an online eco-activist site makes it incredibly fun and easy. All it takes is just getting online and enabling social media to spread the word.
We really can move a nation—if each of us moves two people. And going out and changing the world is really as simple as clicking a mouse.
Tags: community development, Eco-Activism, green banking, green transportation, ShoreBank, social media, triple bottom line
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by Michelle on June 16th, 2009
Increasing numbers of homeowners are having a difficult time maintaining a good payment history with their mortgage lenders due to rising unemployment and to sharp increases occurring in their monthly payments as a result of adjustable rate, interest-only, and “option ARM” mortgages. With nearly a quarter of the nation’s mortgages scheduled to reset in 2009, according to the Center for Responsible Lending, thousands of Chicago homeowners will be at risk of falling behind on their mortgages and perhaps even losing their homes due to job loss and high-cost mortgages.
Whether you are a homeowner with an adjustable rate mortgage or just know someone with one, the following is a list of action steps that can help you get control of your finances and save your home.
1. Create a budget. Identify and list expected income and expenses for the next several months to determine what costs can be reduced to set aside more money for making the house payment.
2. Contact your Servicer to inquire about a modification of your current loan, which can lower your payment and fix the rate of interest going forward.
3. Check your refinance options. If the original lender is not responsive, you may be eligible to qualify for a 15- or 30-year fixed-rate, Energy Conservation or Rescue Loan from ShoreBank. Successful ownership is still the best way to build equity. To learn more about your refinancing options or the Rescue Loan program, contact a ShoreBank mortgage lending specialist at (773) 420-HOME (4663). Consultations with a ShoreBank lender are free and there is no obligation.
4. Get help. Contact nonprofit organizations such as Neighborhood Housing Services in Chicago that has counselors available at no charge to help you to evaluate all your options. For assistance in Cleveland, Detroit, and other areas, contact The Housing and Urban Development Department at (800) 827-1000 to receive a referral to a financial counselor in your area.
And, do not forget, you can also provide help to those who are struggling to keep up with their mortgage. For example, a significant number of our refinance mortgage customers have told us that they discovered the Rescue Loan and Prevention Program because someone at work or a neighbor, usually someone without mortgage payment difficulties, encouraged them to seek help.
With the number of foreclosed, empty homes not just in our urban neighborhoods but in suburban ones too continuing to increase, it is vital that if we wish to get the struggling market back on its feet and stabilize our community, we need to do whatever we can to assist homeowners at risk.
Tags: community development, foreclosed home, green banking, mortgage payment assistance, refinacing, ShoreBank, triple bottom line
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by David on June 9th, 2009
As an ordinary American, wondering if you can keep your job or make your mortgage payment, you may be surprised to learn that the recession is almost over. But, this is what the economists are telling us. All the indicators, they say, now point to recovery. One on the key data series showing better days ahead is Personal Income and Outlays, released monthly by the Bureau of Economic Analysis. Earlier this week, the BEA reported that American’s disposable personal income rose 1.1% in April to $10.91 trillion on an annualized basis. That’s a big jump, but let’s look at the details to see if it really is a harbinger of spring.
Collectively, personal income has five components, shown below as percentages for April:
As you can see, the biggest contributor by far is employee’s compensation, but that’s not the source of April’s increase. Rather it can all be found in higher government transfer payments and lower taxes.
According to the BEA, “Provisions of the Federal Additional Compensation Program of the American Recovery and Reinvestment Act of 2009 boosted the level of personal current transfer receipts by $11.8 billion at an annual rate in April.” What a mouthful, but, hey, $11.8 billion is a lot of money! Except what it actually translates to is an extra $25 a week if you are collecting unemployment insurance.
Much bigger contributions came from tax reductions. The Making Work Pay Credit provision of the Act reduced personal current taxes by $49.8 billion at an annual rate in May. This provision allows a refundable tax credit of up to $400 for individuals and $800 for working couples. Reductions in payroll taxes added $63.6 billion (again, annualized) to May income.
What did we do with this bounty? Answer: We saved it; that is, we didn’t spend it. The BEA calculates the savings rate by subtracting personal outlays from disposable personal income. Putting $100 in the bank counts as saving, but so does paying off your credit card bill. Using this definition, the rate of US savings as a percentage of disposable income rose to 5.7%, the highest since 1995. Spending actually decreased 0.1% from March, and spending, not saving, drives the economy. Also, a little suspicion about the permanence of tax reductions might be warranted, with the Federal budget deficit spiraling into the trillions and only a handful of states able to balance their budgets.
Still, there are powerful signs that a recovery has begun. The Dow Jones Industrial Average has gained more than 2100 points or 33% since hitting its low early in March. Globally, commodity prices are soaring as is industrial production in China. In the US, long-term interest rates are rising because bond traders have started worrying about inflation, which can accompany strong economic growth. As result, the average rate for new 30-year mortgages jumped to 5.29% last week, from a low of 4.78% a month ago. I’m feeling better already. Aren’t you?
Tags: community development, economic predictors, financial crisis, green banking, ShoreBank, triple bottom line
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by Joel on June 2nd, 2009
Last week, I attended an invite-only discussion coordinated by the Department of Energy’s Energy Efficiency and Renewable Energy (EERE) group about the business models needed to exponentially expand energy efficiency within the residential sector. This sector is clearly a priority for the Department of Energy and President Obama. Given how inefficient most homes are and the potential for a residential energy efficiency initiative to drive significant job creation, the government will be directing billions in the coming months on this sector.
The discussion covered the usual issues such as the lack of uniform standards; inadequate processes for verification of savings; problems in the credit markets; and ineffective marketing approaches and messages. A more interesting facet of the discussion related to the philosophical differences among the attendees. One critical question centered on the marketing messages needed to catalyze consumer behavior. One school of thought focused on the need to improve how we communicate the financial benefits of energy efficiency to homeowners. A second approach suggested that emphasizing other types of benefits, such as safety, comfort, etc., may be more effective than sticking to the usual economic rationale. While I can see merits in both, I find myself siding with the latter approach. In particular, I look with envy at the way the organic food sector has just exploded – and this is a product that typically costs more than the alternatives, not less.
The second philosophical question reflects whether the large governmental influx of funds will help catalyze the marketplace or stymie its development. In particular, there is some question about whether the government will let the marketplace lead the way or will overly direct how it develops. Personally, I am fearful that in their haste to get stimulus funds into the community quickly, DOE will rely heavily on old models and existing programs. While many, such as the ENERGY STAR brand, have proven quite effective, we need to create and deploy new models, most of which don’t exist today. Moreover, due to the public ire about waste and fraud, officials are rightly concerned about demonstrating success. Yet, experimentation, and, indeed, failure, are critical for market development and expansion. Neither is likely to be seen by DOE as a measure of success, nor a milestone to be touted to the public.
Tags: community development, energy conservation loans, energy efficiency, green banking, green building, ShoreBank, triple bottom line
Posted in Green Collar | No Comments »
by Karen on May 26th, 2009
It is official – summer is here! Memorial Day may have felt early this year since we still have a week of May left, but the vacation season is now underway. Whether you are traveling for food, folks, or fun, there is likely a lower carbon way of getting there.
You might guess that the answer is simple. But the Union of Concerned Scientists created a guide to the lowest carbon ways to travel. They looked at three different factors: how far you were going, what the vehicle was, and, the kicker for me, and how many people were traveling with you? It turns out that their research had some surprises.
One big surprise was how important it was to incorporate the size of your travel group when you plan your travels. Overall the lowest carbon emission choice is to travel by motor coach - but the second best choice just might be to fly economy. If your party has two people and you are traveling 1,000 miles then flying economy beats out driving - the flight creates 835 pounds of CO2 while driving would create 1,125 pounds of CO2. It even beats out taking the train which comes in at 860 pounds of CO2.
But the Union is serious when they stated ‘economy.’ A vacation splurge can offset an entire year of environmental conservation actions. One wild example was the carbon impact of a family of four taking a vacation. In the Union’s example, the family used frequent flyer miles to fly first class, for free, with their kids from Chicago to Disney World. First class - sounds great! But not for the environment. It turns out a first class seat takes up twice the space of an economy seat causing twice as many emissions. This single flight created 1.5x more carbon emissions than all of the family’s daily commuting for the year. And they commuted about 35 miles a day in non-hybrid cars! What an eye opener.
The Union even created a table to help you plot the most eco-friendly way to enjoy your summer vacation.
So if you are traveling beyond a walk-able distance this summer give the report a look – it has lots of tips on how to get where you are going.
http://www.ucsusa.org/clean_vehicles/solutions/cleaner_cars_pickups_and_suvs/greentravel/getting-there-greener.html
And low happy carbon travels!
Tags: community development, energy efficiency, environmental sustainability, green banking, green transportation, ShoreBank, triple bottom line
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by Michelle on May 20th, 2009
With interest rates on 15- and 30-year mortgages, either near or at historic low levels, now might be the ideal time to explore refinancing your home’s mortgage. However, regardless of the interest-rate, the current mortgage crisis has taught homeowners that understanding their home loan and the process of obtaining a mortgage is vital for ensuring sustainable homeownership.
However, refinancing comes at a cost. For instance, closing fees on a new mortgage can average 3% of the total loan or $3,000 on a $100,000 loan. Closing costs include title policy, appraisal fees, and reestablishment of escrow accounts. So before you refinance, I suggest looking at some characteristics of homeowners to help you determine whether getting a new loan makes good economic sense, or are you better off with your current loan.
I suggest refinancing if you align with the following characteristics:
• Your mortgage’s interest rate is significantly higher than the market’s interest rates.
• You are planning to continue living in your current home for at least several years which will help recoup closing costs over the life of the loan.
• You have an adjustable rate mortgage that is due to reset, reaching a rate significantly higher than the market-rate.
• You have an adjustable rate due to reset and would like to lock-in, a secure and competitive fixed-rate.
• You have a decent amount of equity in your home, about 20% or more. You may be able to refinance even if your home is now worth about the same as your loan value or even a little less; check www.makinghomeaffordable.gov for details refinancing loans that are 105% or less of their property values.
• You have money to use for closing costs. Typically you can obtain a more favorable rate if you have money available up-front as opposed to bundling it into the new mortgage.
On the other side of the coin, it may not pay to refinance if you fall into one or more of the following groups:
• You already have a pretty low interest, 5% or lower, and recovering closing costs is nearly impossible.
• You are planning on moving which makes recovering closing costs nearly impossible too.
• 
You have an adjustable rate mortgage at a pretty good rate and you are planning to move in the next year or two.
• The reassessment of you property is part of the refinancing process and it may force you to pay private mortgage insurance (PMI). You will be charged PMI* when your loan is more than 80% of the current value of the home (*Fannie Mae and Freddie Mac sold loans are eligible under the new Refi Plus program)
• Keep in mind that you are reducing the principal balance on your mortgage, from the very first mortgage payment. Therefore when it’s affordable, consider refinancing for a shorter term. This will prevent you from extending the term of the loan.
• You don’t have the money for closing cost and the interest rate you have to settle for is too high.
And finally, too many homeowners have been struggling to pay not only the mortgage but also other bills, due to a loss of income or perhaps an unexpected expense. As a result, their credit quality has taken a good hit since they obtained their mortgage.
However, for these homeowners who are saddled with a high interest rate, may still qualify for a loan modification or refinance at ShoreBank or other community banks who engage in character lending and rely on the borrower’s payment history, instead of the credit score, in qualifying for refinance loans. It’s worth the effort to obtain lower payments and build equity.
The Making Home Affordable modification program will provide payment relief and prevent foreclosures and is available through your current lender.
Tags: community development, green banking, home ownership, Making Home Affordable modification program, refinacing, ShoreBank, triple bottom line
Posted in Mortgage Lending | 2 Comments »
by Sarah on May 15th, 2009
We are excited to sponsor Chicago Green Festival this weekend, May 16-17 at Navy Pier. Green Festival is a fabulous opportunity for ShoreBank to illustrate to others that by integrating economic development and environmental sustainability we can build stronger, healthier communities. Amidst the backdrop of current economic conditions, this education has perhaps never been more important.
Green Festival is the largest environmental sustainability event in the world. It attracts tens of thousands of individuals interested in “green” living. Festival visitors can participate in green career workshops, kids activities, sample organic refreshments, and enjoy live music while gaining a better understanding and appreciation for the 350 small green businesses from across the country that are creating healthier individuals and helping to build strong, sustainable communities.
But, living a more sustainable, green lifestyle takes place in the community, one person at a time. That is why social media has such great potential to reach more people and make positive impressions. So, to celebrate Green Festival 2009, ShoreBank will plant a tree for every new person who becomes a ShoreBank Facebook Fan Page fan this weekend!
But we need your help. Please show your support for ShoreBank’s mission and help protect the environment by sharing our Fan Page at http://www.facebook.com/pages/ShoreBank/21702975841 with all of your friends and family. Green Festival might be in Chicago but environmental sustainability knows no boundaries.
If you are in Chicago, please come to Green Festival, compliments of ShoreBank. Find your free Green Festival admission coupon here. Please stop by our booth at #5000 and say hello! We look forward to meeting you and all of our new Facebook fans!
Tags: community development, green banking, Green Festival, ShoreBank, social media, triple bottom line
Posted in Community | 1 Comment »
by Joel on May 12th, 2009
Even reaching the low hanging fruit often requires a ladder
Every year, as part of our Earth Day events, ShoreBank hosts a seminar for nonprofits about the opportunities available to reduce energy usage in their facilities and incentives available from utilities and foundation to complete the energy efficiency retrofits. As part of this year’s event, we asked representatives from ComEd, our local electrical utility, to complete an energy audit of a nonprofit facility. ComEd graciously agreed and presented the findings at the event.
The results were typical of our nonprofit customers – lots of low cost opportunities, such as changing bulbs/ballasts to more efficient varieties, switching to LED exit signs, and adding sensors for irregularly used spaces, such as meeting rooms and bathrooms. The identified measures included replacing inefficient lighting in a building that was built less than 3 years ago. In total, the costs of the measures was less than $40,000, with a pay-back estimated under 3 ½ years.
The reaction to the findings was also typical. The CFO was against spending the funds, especially to replace lighting that was only a few years old, irrespective of the large incentives offered by the utility and the quick pay-back on the measures.
Fortunately, the story doesn’t end there. Thanks to a recoverable grant from the Federal Home Loan Bank of Chicago, ShoreBank is able to offer very low-cost loan to cover these upfront cost. With this low cost funding, and an Executive Director committed to making the improvements, the retrofit is moving forward.
The story is instructive for a couple of reasons. For one, it demonstrates the importance of intermediaries such as ShoreBank. ShoreBank was instrumental in connecting the facility owner to the resources needed to understand the options available. In this case, we discovered that for-profits in Illinois are eligible for free energy audits, while nonprofits are not. So, without our focus on this sector, a whole set of owners, who maintain a large number of older buildings, would fall outside of the established programs.
Secondly, the example illustrates the importance of capitalizing loan funds focused on energy efficiency retrofits. In this case, the risk is very limited – it is a small loan to a large and well established nonprofit. But the perceived risks are high - since the loan is collateralized only by the lighting equipment and the nonprofit is dependent upon state grants, at a time where the state faces a massive budget deficit. By utilizing the funding from the Federal Home Loan Bank, we could offer terms that allowed the project to move forward. We see this financing piece as a critical mechanism to providing a ladder to pick the low hanging fruit.
Tags: community development, energy conservation loans, energy efficiency, green banking, ShoreBank, triple bottom line
Posted in Green Collar | No Comments »
by David on May 5th, 2009
Memorial Day, 1937. Chicago. Several thousand striking steelworkers and their families gather in a field near the Republic Steel plant to obtain recognition for their union. Singing “Solidarity forever! The union makes us strong!” and carrying banners, they approach the plant. But between the men, their families, and Republic Steel stand 500 Chicago policemen. The police move forward, first swinging their nightsticks and then firing tear gas grenades and guns shouting “you got no rights.” Within a few minutes seven workers are dead and more than one hundred seriously hurt. The event has come down through Labor history as the Memorial Day Massacre.
May 1, 2009, a day celebrated in many countries as International Workers’ Day in honor of the achievements of Organized Labor. New York City. The United Automobile Workers, representing Chrysler’s unionized workers, agrees to a bankruptcy that would effectively give it a 55% ownership stake in the company. The UAW’s contract is preserved through the bankruptcy, meaning it will not have to renegotiate its lucrative salaries and benefits with Fiat, the Italian automobile manufacturer that will operate the new Chrysler.
Of course, the deal will be worth nothing if Chrysler goes down, a very real possibility. New, Fiat-designed Chryslers will not be roll off the assembly lines for two years or more, and Fiat, in the past, has had no success in cracking the American market. Not that Chrysler has had much success lately. Its U.S. deliveries in April dropped to 76,682 units, down 48% from a year ago and 60% less than in April 2007. Chrysler isn’t alone; total U.S. auto sales fell in April, for the 18th consecutive month to just 819,540 units. But, at 9.4% of U.S. sales, Chrysler is behind GM, Ford, Toyota, and Honda.
Organized labor, still oppressed in 1937, reached its zenith in the 1950s and 60s, when America’s industrial might was unchallenged. The notion that one of the Big Three automakers could fail would have been preposterous. Labor flexed its muscles, wringing ever-greater concessions from Capital. But the world turned, and now, at least at Chrysler, Labor is Capital.
Tags: community development, economic predictors, green banking, ShoreBank, triple bottom line
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