NCRC supports House resolution to overturn new CRA rules

House Financial Services Committee Chair Rep. Maxine Waters (D-CA) and Rep. Gregory Meeks (D-NY), also a member of the Financial Services Committee, introduced yesterday a Congressional Review Act resolution to overturn the Community Reinvestment Act (CRA) rules finalized this month by the Office of the Comptroller of the Currency (OCC). 

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

“The new rules should be overturned and the three agencies that regulate the nation’s banks should start over and work together on a true modernization of the CRA regulatory framework. The OCC shouldn’t have moved forward in the middle of the pandemic, and with rules that will undermine the ability of communities to rebuild after. 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.

“We greatly appreciate the efforts of Reps. Waters and Meeks to cancel the OCC’s new CRA rules.” 

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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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