Banks are moving away from lending to low- to moderate-income borrowers and borrowers of color, the National Community Reinvestment Coalition reported in an analysis of new data on mortgage lending from the Consumer Financial Protection Bureau.
“I think their agreement is no better or no worse than many of our agreements,” said Van Tol, chief executive of the Washington-based National Community Reinvestment Coalition. This was the seventh agreement with banks he has negotiated in two years.
A top federal bank regulator has floated no longer enforcing lending rules for the poor based on the locations of a bank’s physical branches, a change likely to be opposed by NCRC and other community groups.
Listen to NCRC’s Jesse Van Tol discuss the rise of banking deserts and important CRA news in Washington, DC.
The new branch locations will increase housing accessibility for low-income neighborhoods, according to Jesse Meisenhelter, spokesperson of NCRC.
What do Baltimore, Dallas, and Miami have in common?
Decades of banking bias have left many unfairly cut out of home ownership, local and national reports show, but one national organization is partnering with a Chattanooga grassroots nonprofit organization to combat the inequity one bank at a time.
Chase’s arrival in the D.C. area is significant in part because it has been accused of lending discrimination here.