NCRC applauds House passage of resolution to save anti-redlining law

Today, the House of Representatives voted to pass H.J. Res 90, which disapproves of the Office of the Comptroller of the Currency’s (OCC’s) new Community Reinvestment Act (CRA) rules. If the resolution is passed into law, it would make the CRA final rule null and void.

Jesse Van Tol, CEO of the National Community Reinvestment Coalition, made the following statement:

“Going alone, the OCC pushed out a final CRA rule that hardly anyone wanted. Even before the COVID-19 pandemic set our economy on a downward spiral, the final rule was a bad idea. Now, it is morally corrupt. At exactly the wrong time, when families and communities are suffering from an unprecedented health and economic crisis, the new rules reduce resources to low- and moderate-income (LMI) communities, families and communities of color. We encourage the Senate to follow the lead taken by the House and pass this resolution. 

“Even most banks didn’t want these new rules put into place right now, and they still are unsure what it will take to implement them. 

“The new rules weaken requirements for banks to lend to lower-income borrowers and communities, which is the whole point of the law. The timing couldn’t be worse, in the middle of a health and financial crisis that is far from over. 

“Congress and the President really should overturn this plan so all three banking agencies can work together on true modernization of CRA. We need that, struggling communities need it, and the OCC rules don’t help.”

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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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