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House Financial Services Committee moves to strengthen fair lending enforcement

Passage of the Fair Lending for All Act will increase fair lending testing, improve data collection and disclosure, and expand enforcement capacity

Last week, the House Financial Services Committee reported out the Fair Lending for All Act, a comprehensive approach to fair lending testing, data collection and enforcement. 

The Fair Lending for All Act expands the Consumer Financial Protection Bureau’s capacity and commitment to carry out match-pair testing, a proven method to uncover lending discrimination.  Previous match-pair testing has uncovered discouragement in discrimination in the small business Paycheck Protection Program, auto lending, and other types of credit.  

The bill also prohibits discrimination on the basis of sexual orientation and gender identity, creates new criminal penalties for violations, and enhances ECOA’s civil enforcement provisions by providing organizations with standing to bring fair lending cases and ensuring that any entity involved in the credit process is subject to fair lending laws.

The bill is supported by over 70 civil rights, community and consumer organizations.

NCRC would like to thank Subcommittee Chair Al Green and Chair Maxine Waters for their leadership on this issue and urges the passage of this important legislation without delay.

Tom Feltner is NCRC’s Vice President of Policy and Research.

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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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