In what it is calling the largest mortgage lending program ever by an African-American-owned financial institution, OneUnited Bank plans to make $200 million of home loans to inner-city borrowers in Miami, Los Angeles, and its hometown of Boston over the next 15 months.
Kevin Cohee, OneUnited's chairman and chief executive, said the company wants to give neighborhoods that are frequently written off a lift.
"Our message is to provide help and hope to communities that continue to be underserved and left behind," he said in a press release issued Wednesday.
The mortgage program is an alternative to the subprime and predatory lenders that are prevalent in many urban neighborhoods, Mr. Cohee said.
Robert Patrick Cooper, senior counsel at the $494 million-asset OneUnited, said in an interview Wednesday that the bank has already begun making loans in the Los Angeles area, where it has five branches. It kicked off the program this week in Boston and Miami, where it has two branches each.
Mr. Cooper said the mortgage loan program is also meant to showcase the enhancement of the entire loan operation at OneUnited, which has added lenders and upgraded its underwriting over the past year. It originated $150 million of loans in 2004, the largest total in its 23-year history, but Mr. Cooper said its infrastructure has the capacity to handle several times that amount.
William Michael Cunningham, a consultant who follows minority banking, said OneUnited is "right on" with its mortgage program.
"It's an impressive amount for an African-American bank, and there is tremendous demand" for home loans in OneUnited's markets, Mr. Cunningham said.
One United had about $370 million of loans on its books at the end of the second quarter, including $86 million of mortgages. It reported a profit of $1.8 million for the first half of 2005 and $4.5 million for all of 2004.
OneUnited has also developed a series of community service radio announcements to promote the mortgage campaign and highlight positive trends in urban communities.
The ads, which were produced by OneUnited's vice chairman, Jheryl Busby, feature the singer Patti Labelle, the television personality Tavis Smiley, and the actor Malik Yoba.
Mr. Busby is also the head of urban music at DreamWorks SKG.
