NJ Spotlight, January 28, 2020: Op-Ed: Fearing proposed changes to community lending regulations would re-legalize redlining
Redlining and discriminatory lending practices continue to stifle our most vulnerable communities, and yet the Trump Administration wants to weaken federal regulations even more.
It is not surprising that this administration, which has already moved to make qualifying for basic necessities like food stamps and housing vouchers as well as data collection to prevent discrimination in housing more difficult, wants to loosen these rules. Our elected officials must oppose these changes and ensure that the Community Reinvestment Act (CRA) remains a strong tool in the hands of nonprofits and neighborhood leaders.
Discrimination in lending is still widespread and devastating for New Jersey families and communities. Despite the fact that minority-owned firms have led a significant portion of the nation’s small business growth, 79% of it from 2007-2017, these same firms have a much harder time accessing small business loans than their white counterparts.
CRA is one of the few mechanisms available to encourage and monitor lending to low- and moderate-income communities, businesses and individuals. This law, passed in 1977, requires banks to provide loans, investments, and services to low- and moderate-income people and places in areas where they have branches.
