MReport November 2020

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M R EP O RT | 47 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION JPMorgan Chase Commits $30B to Bridging Racial Wealth Gap Over the next five years, the company plans to devote the funds to address affordable housing and financial health in Black and Latinx communities. J PMorgan Chase announced its plan to commit $30 bil- lion toward philanthropic work aimed at advancing racial equity. The announcement outlines how the company plans to distribute these funds across multiple efforts. The company will promote affordable housing and homeownership in under- privileged communities across the country, work to help grow Black- and Hispanic/Latinx-owned busi- nesses, improve financial health and access to banking in com- munities of color, build a more diverse and inclusive workforce within the company, advocate for policy reform, and partake in other philanthropy. "Systemic racism is a tragic part of America's history," said Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co. "We can do more and do better to break down systems that have propa- gated racism and widespread economic inequality, especially for Black and Latinx people. It's long past time that society ad- dresses racial inequities in a more tangible, meaningful way." Aiding communities of color with affordable housing is one of the top priorities outlined in the JPMorgan Chase announcement. Finding affordable rental hous- ing and homes is a significant struggle for Black and Latinx communities across the country. Homeownership is 25% lower among Black and Latinx families. JPMorgan Chase aims to address this by originating an additional 40,000 home purchase loans for Black and Latinx house- holds over the next five years by committing $8 billion in mort- gages. The company also intends to "help an additional 20,000 Black and Latinx households achieve lower mortgage payments by providing up to $4 billion in refinance loans over the next five years." JP Morgan aims to provide more educational opportuni- ties and counseling programs to help more Black and Latinx communities achieve sustainable homeownership. The company also plans to act from a policy perspective by working with the U.S. Department of Housing and Urban Development (HUD) and advocating for comprehen- sive housing reforms to increase homeownership access. The company will finance an additional 100,000 affordable rental units over the next five years by providing "$14 billion in new loans, equity investments, and other efforts to expand af- fordable housing in underserved communities." JP Morgan is also commit- ting to the growth of Black- and Latinx-owned businesses, who often face numerous challenges while developing and scaling their businesses. The firm plans to offer an additional 15,000 loans to small businesses in majority-Black and -Latinx communities by devoting $2 billion in loans over the next five years. The investment bank's efforts towards supporting these busi- nesses will also include launching a new program to help entre- preneurs in underserved areas gain access to coaching, techni- cal assistance, and capital. There will also be an expansion of the Entrepreneurs of Color Fund to support more Black and Latinx small business owners. The company will also be working on a digital lending product to better help small Black- and Latinx-owned businesses looking for quick access to capital. Regarding policy, JPMorgan Chase will advocate for Small Business Administration reforms and more COVID-19 aid. JPMorgan Chase will "help one million people open new low-cost checking or savings accounts" and hire 150 new community managers while opening new Community Center branches in underserved communities. The company also intends to support a federal wealth and savings plan. The firm outlines how it will make efforts to build more diversity and inclusion in its workforce by holding execu- tives accountable for improving companywide diversity. JPMorgan plans to invest in its employees by providing financial coaching and starting a new program to upskill and reskill employees and offering paid time off to vote. The company plans to invest in start-up companies offering opportunities to underserved communities and will also partner with Historically Black Colleges and Universities (HBCU). Lastly, JPMorgan Chase intends to get involved in philanthropy by providing $2 billion in philan- thropic capital over the next five years. The firm's philanthropic efforts will also include investing in research pertaining to financial and housing struggles Black and Latinx families face, supporting diverse-led nonprofit organiza- tions, and offering "low-cost loans and philanthropy to improve housing stability and affordability for Black and Latinx households." "We can do more and do better to break down systems that have propagated racism and widespread economic inequality …" —Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co.

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