July 31, 2026, Scotsman Guide, Proposal To Overhaul Fair Lending Rules Draws Housing Industry Backlash
The National Community Reinvestment Coalition (NCRC) said in a statement that the proposal would “drastically weaken banks’ obligation to meet the credit needs of low- and moderate-income communities.”
Jesse Van Tol, NCRC’s president and CEO, said that instead of helping working-class people, “now it lets hundreds of banks off the hook, and dramatically reduces the obligation for others.”
Van Tol said he was particularly concerned about the proposal to raise the large-bank threshold to $10 billion and to leave banks below $1 billion with no community investment obligation.
“Bank capital drives the creation of affordable housing in this country, and they do it because of CRA,” said Van Tol. “Now hundreds of banks won’t have the obligation to do so, and hundreds more will have a weaker requirement, which will further deepen our housing crisis.”
