The NCRC study, based on government exams of the nation’s 50 biggest banks, found some banks get credit for investments outside of their assessment areas (AAs) even when those banks underinvested in the areas they are supposed to serve first. Meanwhile, other banks get little or no credit outside of assessment areas.
Data on community development lending and investing is lacking on a census tract level, making the information incomplete and difficult to assess. However, this is not the case for home mortgage lending data and small business loan data. If the federal regulatory agencies truly want to reform CRA, the first place to start is with better data. It would be a win-win for both banks and community organizations by facilitating identification of underserved areas. It would also further CRA’s objectives of directing access to credit and capital where it is needed most.
Washington, DC – A new study released today by the National Community Reinvestment Coalition (NCRC) found that banking industry proposed changes to the Community Reinvestment Act (CRA) would allow midsize banks to circumvent federal requirements to lend and invest in low and moderate income neighborhoods.These proposed changes would endanger billions in affordable housing and community development investment.
Washington, DC – Today, the National Community Reinvestment Coalition (NCRC) applauded the Boston City Council’s unanimous passage of a local responsible banking ordinance. “We are very pleased that the Boston City Council has passed a local responsible banking ordinance,” said NCRC President and CEO John Taylor. “Local responsible banking ordinances empower local governments to hold banks […]
Washington, DC – Today, in reaction to the release of a revised proposed Qualified Residential Mortgage (QRM) rule by federal regulators, NCRC President and CEO John Taylor made the following statement: “We are pleased that federal regulators have proposed a revised Qualified Residential Mortgage (QRM) rule that removes the unnecessary downpayment requirement that was previously proposed […]
Washington, DC – Today, the National Community Reinvestment Coalition reacted to the Federal Deposit Insurance Corporation (FDIC) issuing a conditional approval of a merger between the holding companies for Renasant Bank and M&F Bank. As a condition of the merger, the newly merged Renasant Bank must conduct additional marketing to small businesses and qualified home […]