The Obama Administration has proposed shifting the Community Reinvestment Act (CRA), along with the other consumer protection laws, to the Consumer Financial Protection Agency (CFPA)–a new agency that would be responsible for further developing consumer protection and fair lending regulations, conducting examinations, and enforcing these regulations. Last week, Chairman Frank of the House Financial Services Committee introduced H.R. 3126, that largely resembles the Obama Administration’s proposal except that jurisdiction of CRA would remain with the existing federal bank agencies. The Administration was correct in their proposal to shift CRA oversight to the CFPA since the existing regulatory agency enforcement of CRA has been inconsistent and weak. Urge your co-workers, friends, and community partners to call Representatives in your state to tell members of the House Financial Services Committee to keep CRA regulation in this bill, HR 3126!
Summary of Financial Regulatory Reform/Establishment of CFPA