Banking Dive: OCC to rescind Trump-era revamp to anti-redlining rule

Banking Dive, July 20, 2021, OCC to rescind Trump-era revamp to anti-redlining rule

The Office of the Comptroller of the Currency (OCC) said Tuesday it will rescind its Trump-era revamp of the Community Reinvestment Act (CRA) and committed to joining the Federal Reserve and Federal Deposit Insurance Corp. (FDIC) in issuing interagency rulemaking aimed at modernizing the 1977 anti-redlining rule.

“This is an awkward, disjointed and rushed move by a single agency that couldn’t get agreement from the two other agencies that regulate banks within the same administration,” Jesse Van Tol, CEO of the National Community Reinvestment Coalition, said in a statement last year.

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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

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