NCRC applauds Democrats in Senate and House for letters to CFPB

Today, 19 Democratic Senators sent a letter to the Consumer Financial Protection Bureau (CFPB) expressing their disapproval of the agency’s proposed rule to reduce Home Mortgage Disclosure Act (HMDA) reporting. This comes on the heels of a similar letter sent on June 11 by 63 House Democrats.

Jesse Van Tol, CEO of the National Community Reinvestment Coalition (www.ncrc.org), made the following statement:

We applaud Senate and House Democrats’ efforts to protect HMDA data reporting by submitting letters in opposition to the CFPB’s proposed rule changes. This data is essential to track the performance of mortgage lenders. It also serves as an early detection system of risky practices for federal regulators, local governments and advocacy groups like NCRC.

“The CFPB’s proposed changes won’t protect consumers or the financial system, and they won’t make business easier for small lenders because lenders already set up systems to report the data that the government now seems intent to help them hide. The only beneficiaries of these changes will be bad actors, a subset of smaller lenders that are doing the greatest disservice to their communities or creating risk for consumers and the financial system.

“With an ever-growing list of opposers, we join in urging the CFPB to repeal its proposed rule change. NCRC organized a letter signed by over 150 community-based organizations that detailed how the proposed rule would impair fair lending enforcement and would make it difficult to determine if lenders were meeting housing needs in thousands of lower-income and rural communities across the country. HMDA’s statutory purposes include determining whether lenders are meeting housing needs. The CFPB’s proposal endangers the satisfaction of HMDA’s statutory purposes.”


To see the Senate letter, click here: https://www.banking.senate.gov/imo/media/doc/2019.06.12%20-%20CFPB%20HMDA.pdf

To see the House letter, click here: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=403894

In addition to the House and Senate, the New York Attorney General sent in a letter describing how the proposal will reduce their ability to enforce anti-discrimination laws.

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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

Complete the form to download the full report: