LAKE FOREST, Calif., June 02, 2021 (GLOBE NEWSWIRE) -- Main Street Alliance (MSA) is a community advocacy group launching an accountability campaign about Clearinghouse Community Development Financial Institution which received funding from major banks and government while pushing its Las Vegas borrowers into foreclosures and ultimately bankruptcy. “Clearinghouse has benefited during the pandemic due to government programs, however, that did not stop them from pushing couple of their borrowers to the brink of losing their properties and projects,” said Rick Ramirez, MSA co-founder. “Clearinghouse refuses to directly discuss any possible settlements or resolutions and forced borrowers to communicate only via multiple attorneys which has the effect of exhausting borrowers financially.”
“Please stop communicating with me or any other individuals in our company - we can communicate through attorneys now and always...Good day,” said President/CEO Douglas Bystry in his response to borrower. “We want to keep our borrower on a tight leash and need to keep foreclosure on even under settlement agreement,” said Chief Credit Officer Kristy Ollendorff to her Las Vegas borrower according to MSA investigation.
Clearinghouse also actively promotes their B Corporation status with B Labs which certify companies who commit to be a force for good and be a transparent and socially responsible business.
MSA reports that senior management refuses to communicate directly with borrowers, Clearinghouse Board of Directors has been disinterested in discussing any resolution. “Board Chairman Gary Dunn, formerly with Banc of California, apparently has no interest in holding Clearinghouse accountable for social responsibility,” adds Rick Ramirez. The Board consists of banking executives tasked with ensuring their banks do good for the communities: Susan Montoya of Citizens Business Bank, Alva Diaz of Wells Fargo, Rochelle Mills of Innovative Housing Opportunities, Brian Riley of Foothills Bank, Chris Walsh of Partners Bank of California, Claudia Lima from CIT Bank, David Levy of Fair Housing Council Orange County, Glen Pacheco of First Choice Bank, Jeff Talpas of BBVA, Kelvin James of Bank of Hope, Lisa Dancsok of Arizona Community Foundation, Marc Rebal of Nano Banc, and Robert McAuslan of Western Alliance Bancorporation.
The following banks have been investing into Clearinghouse: U.S. Bank via U.S. Bancorp Community Development Corporation, Comerica Bank, First Choice Bank, Western Alliance Bank, Mutual of Omaha Bank and CIT Bank, Banner Bank, CalPrivate Bank, United States Treasury Community Development Financial Institutions Fund, Community Bank and Citizens Business Bank, Commercial Bank of California, Pacific Mercantile Bank, Commonwealth Business Bank, Nano Banc, Partners Bank California, Cathay Bank, Mohave State Bank now Glacier Bank, 1st Capital Bank, Opus Bank and Grandpoint Bank now Pacific Premier Bank, Bank of Hope, First Bank, First General Bank, State Bank of India, Manufacturers Bank, American Business Bank, Royal Business Bank, and CommerceWest Bank. These banks should keep Clearinghouse accountable for their actions and aligned with their stated goals and objectives. MSA asks them to demand that their funds not be used for the purpose of derailing community projects and forcing borrowers into receiverships, foreclosures, and bankruptcy.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1f2a0a41-ea0e-4a27-93d0-4e391b31e152