Axios, October 3, 2023, How New Bank Capital Rules Could Hit Black Borrowers Hardest
New Federal Reserve rules meant to make big banks safer — the set of plans known as Basel Endgame — would make it even harder for low- and middle-income Americans, a group that includes a disproportionate number of Black Americans, to get a mortgage.
The Federal Reserve is being torn between two imperatives — strengthening the banking system and preserving the ability of under-served borrowers to get onto the bottom rung of the housing ladder.
The Fed\’s proposals would mark some mortgages — the ones with down payments of less than 20% — as being particularly risky. Those mortgages are issued overwhelmingly to low- and middle-income borrowers.
A broad coalition has come together to oppose this part of the new capital requirements, including the National Community Reinvestment Coalition.
