Reveal exposes modern-day redlining is occurring in at least 61 US cities. In Philadelphia, black applicants there were almost three times as likely to be denied a conventional home purchase loan as white applicants. And this discrimination isn’t just a few banks, nearly two-thirds of mortgage lenders are still discriminating against clients of color.
An analysis of 31 million mortgage records made available under the Home Mortgage Disclosure Act found 61 metro areas across America where people of color were denied conventional home purchase loans at significantly higher rates than whites.
The Community Reinvestment Act is worth strengthening to fight discrimination.
As regulators look to update the Community Reinvestment Act, they should better integrate online and mobile banking activity as part of exam performance.
For years, banks have been fighting these requirements to lend to underprivileged people — and President Trump is listening as he continues his war on regulation. The irony is that these rules benefit the same “blue-collar people Donald Trump maintains he represents.
“Otting is the new sheriff, and in assuming that responsibility we hope that working class Americans will still be fairly served by banks and able to access financial opportunity,” said John Taylor, President and CEO of NCRC.
Three banks in three different regions collectively promised nearly $20 billion in home mortgages, small business loans, community development financing, and charitable contributions, as part of negotiations that included hundreds of community-based organizations in each region that were completed over the past month.
The $22 billion-asset company, which has been an aggressive acquirer in recent months, said in a press release last week that it had worked with the National Community Reinvestment Coalition on the five-year plan.
IBERIABANK announced today a community benefits plan with the National Community Reinvestment Coalition (NCRC) and its community-based members and partners across the southeastern region of the United States.
“IBERIABANK has been actively engaged in meaningful conversations with our members to ensure that they are well positioned to meet the needs of underserved communities. This community benefits commitment is the gold standard and raises the bar for all banks on what constitutes a forward thinking community commitment,” said NCRC President and CEO John Taylor. “We very much appreciate the strong collaboration demonstrated by IBERIABANK’s executive leadership.”
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.