Perspectives on Community Reinvestment Act (CRA) Reform

An HOLC security map of Philadelphia showing redlining of minority neighborhoods. HOLC maps are part of the Records of the FHLBB (RG195) at the National Archives II. Image attributed to the United States Federal Government [Public domain].

This month, we're sharing perspectives on Community Reinvestment Act (CRA) reform and what it could mean for our communities.

In December, the Office of the Comptroller of the Currency (OCC) & the Federal Deposit Insurance Corporation (FDIC) proposed significant changes to the Community Reinvestment Act (CRA), originally enacted in 1977 to combat the legacy of redlining and hold financial institutions accountable to serving the credit and banking needs of low- and moderate-income neighborhoods.

As the banking industry has evolved over past decades, community members and professionals have spoken out about a need for revisions to CRA regulation that account for new realities, including the world of online banking. Many are also concerned, however, that the OCC and FDIC's proposed changes could weaken requirements for banks to invest in local neighborhoods. This list of articles includes perspectives from a variety of different voices exploring the issue of CRA reform and the latest proposed changes. Comments on the proposed ruling are being accepted through April 8.

Perspectives on Community Reinvestment Act (CRA) Reform

A Tale of Two Community Reinvestment Act Proposals
Oscar Perry Abello, Next City

Fed Has to Pitch In on CRA Makeover
Faith Bautista and Steven Sugarman, National Diversity Coalition

Strengthening the Community Reinvestment Act by Staying True to Its Core Purpose
Federal Reserve Governor Lael Brainard

Inviting a Return to Discrimination
Charlene Crowell, Center for Responsible Lending

By Staying on Sidelines, the Fed is Protecting CRA
Paulina Gonzalez-Brito, California Reinvestment Coalition

Statement - Notice of Proposed Rulemaking: Community Reinvestment Act Regulations
Martin J. Gruenberg, Federal Deposit Insurance Corporation (FDIC)

Initial NCRC Analysis Of The FDIC And OCC Notice Of Proposed Rulemaking Concerning The Community Reinvestment Act
National Community Reinvestment Coalition (NCRC)

A Community Reinvestment Act That Works for Everyone
Comptroller Joseph Otting, the Office of the Comptroller of the Currency

The Fight Over CRA Reform Just Got More Complicated
Karen Petrou, Federal Financial Analytics

New Penn Institute CRA Research Compendium Suggests Incremental Change Is Best Path For CRA Reform
Josh Silver, National Community Reinvestment Coalition (NCRC)

Editorial: Proposed Banking Changes Could Starve Investment Where it's Needed Most
St. Louis Post-Dispatch Editorial Board

Don’t Overhaul CRA Just For the Sake Of It
and Give CRA Reform Credit Where It's Due
Kenneth H. Thomas, Community Development Fund Advisors

Protecting the Community Reinvestment Act Is an Investment in Economic Justice
Jaime Weisberg, Association of Neighborhood & Housing Development (ANHD)

Redlining Would Be Relegalized by CRA Reform Proposal
Frank Woodruff, National Alliance of Community Economic Development Associations (NACEDA)

Jimmy Carter signs the Housing and Community Development Act. From the National Archives and Records Administration. Image attributed to the United States Federal Government [Public domain].

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Articles in “From the Field” represent the opinions of the author only and do not represent the views of the Community Builders Network of Metro St. Louis or the University of Missouri-St. Louis.

We invite readers to contribute to the civic conversation about community development in St. Louis by writing an op-ed for the Community Builders Exchange. Op-eds should be short (400-700 words) and provocative. If you have an idea for an op-ed, contact Jenny Connelly-Bowen at jenny@communitybuildersstl.org.