Morning Consult: Key Federal Reserve Official Ups the Interagency Ante on Redlining Regulation

Morning Consult, January 8, 2020: Key Federal Reserve Official Ups the Interagency Ante on Redlining Regulation

Federal Reserve Governor Lael Brainard is pushing her own plan to overhaul anti-redlining regulation, challenging a proposal put out by other bank regulators.

The Fed oversees compliance of the Community Reinvestment Act with two other agencies: the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. The OCC and the FDIC in December jointly proposed an overhaul of the Community Reinvestment Act that consumer advocates have criticized as erasing protections.

Brainard’s ideas could shift the conversation around the Community Reinvestment Act, said Jesse Van Tol, chief executive of the National Community Reinvestment Coalition.

“To date, the dynamic has been the OCC has been pushing the other regulators to get on board,” he said. “Now we have two competing versions out in the universe.”

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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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