NCRC Applauds Congressional Letters Calling for CRA Regulatory Reform

Washington, DC – Today, the National Community Reinvestment Coalition (NCRC) applauded letters from members of the U.S. Senate and U.S. House of Representatives to the financial regulators expressing concerns about enforcement of the Community Reinvestment Act (CRA) and calling for reforms to its guidance and regulations. NCRC President and CEO John Taylor made the following statement:

“NCRC applauds these letters to regulators calling for modernization of CRA regulations. While the financial services industry continues to change with the times, regulators have not kept up. The needs of low- and moderate-income individuals and communities remain, and must not be forgotten. The fact that 98 percent of banks received passing grades on their CRA exams between 2012 and 2014 is evidence that fundamental problems continue to pervade CRA enforcement efforts. As the banking industry moves forward, particularly in areas such as financial technology, it’s critical that the financial regulators hold true to the purpose of the law, which is to ensure that banks serve the credit needs of the communities they are chartered to serve, as they update its guidance and regulations.”

“Getting a home mortgage is the hardest it’s been in 50 years. Something needs to be done. The regulators’ hands need to be forced. This should be a nonpartisan effort to get safe and sound loans into the hands of those working their way up the economic ladder. Homeownership is the single most effective way that working people build wealth. Let’s make sure that this is done in a fair and equitable manner. Right now, it isn’t.”

This Wednesday, October 12, is the 39th anniversary of CRA.

Congressman Gregory W. Meeks (NY-05), senior member of the House Financial Services Committee, led the letter from the House of Representatives. It was signed by 60 members of the House, including many members of the Congressional Black Caucus, House Financial Services Committee ranking member Maxine Waters (CA-43), and other members of the House Financial Services Committee. It can be read here.

The Senate letter was signed by Senators Cory Booker (NJ), Jeff Merkley (OR), Ron Wyden (OR), Barbara Boxer (CA), Harry Reid (NV), Kirsten Gillibrand (NY), Barbara Mikulski (MD), Ben Cardin (MD), Richard Durbin (IL), Mazie Hirono (HI), Dianne Feinstein (CA), Gary Peters (MI), Charles Schumer (NY), and Patty Murray (WA). It can be read here.


About NCRC
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.

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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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