Houston Chronicle, February 3, 2020: Changes to Community Reinvestment Act will return us to redlining [Opinion]
Just two years ago in Houston, a major national bank was sued for “modern-day redlining.” The NAACP alleged the bank was engaging in discriminatory practices after closing more than half its offices in minority neighborhoods while adding them in predominantly white areas.
Despite the allegations, redlining could be making a comeback. This week, lawmakers in Washington heard testimony from the head of the Office of the Comptroller of the Currency (OCC), Joseph Otting, on his plan to “modernize” the Community Reinvestment Act (CRA).
Since 1977, the CRA law has been a driving force behind banks being held accountable in making investments in the communities they serve. However, I believe Otting’s proposed approach will do the opposite of modernizing the CRA and return us to the bad old days of redlining.
