Bank News Now: Court rules lawsuit challenging CRA rule can proceed

Bank News Now, February 7, 2021, Court rules lawsuit challenging CRA rule can proceed

A judge ruled that a lawsuit seeking to invalidate recent reforms of the Community Reinvestment Act can proceed.

The National Community Reinvestment Coalition, the California Reinvestment Coalition and Democracy Forward sued the OCC in June, alleging that the agency’s CRA reform rule would “gut” banks’ obligations to invest in their communities. They also argued that the rulemaking process violated the Administrative Procedure Act.

The OCC “failed to publish research it claimed supports issuance of the rule and data obtained in a request for information and failed to provide any substantive records of calls [former] Comptroller of Currency Joseph Otting had with CEOs of 17 large banks,” Westmore wrote.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: