Next City, January 15, 2020: Unpacking the Proposed Changes to the Community Reinvestment Act
On Wednesday, January 29, join Oscar Perry Abello, Next City’s senior economics correspondent, as he leads a virtual panel discussion on the purpose of the Community Reinvestment Act (CRA), how a new proposal could negatively impact low- and moderate-income individuals, and equitable ways in which the act can be improved.
When first enacted in 1977, the CRA was created to ensure that banks met the credit needs of all the communities in which they conduct business. In many ways this act served as a safeguard for low- and moderate-income individuals — often black and brown communities — when combating redlining and other discriminatory housing practices
Recently, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), drafted a joint proposal to update the CRA. While the proposal’s stated goal is to “increase bank activity in low- and moderate-income communities where there is significant need for credit, more responsible lending, greater access to banking services, and improvements to critical infrastructure,” some financial professionals are a bit wary.
