Published: August 2022

Groups push for reforms that make Community Reinvestment Act race- and climate-conscious

In a letter to the Comptroller of the Currency, the Federal Reserve System board of governors and the FDIC assistant executive secretary, Consumer Action and 25 other organizations urged key changes to the Community Reinvestment Act (CRA) under a proposed update. Among other things, the organizations want the CRA to adopt a race-conscious approach, strengthen CRA exams, increase community engagement, and address climate change and housing displacement.

Consumer Action joined 25 allies in a letter urging the Comptroller of the Currency, the Federal Reserve System board of governors and the FDIC to make key changes to the Community Reinvestment Act (CRA) under a proposed update. While the CRA was intended to address the harms caused by redlining and financial discrimination, the racial wealth gap has actually grown since its passage. The signatories say it is increasingly apparent that banks must use their power to mitigate the impacts of climate change and promote housing stability. As such, included in the organizations’ “asks” are that the CRA adopt a race-conscious approach, that climate-related eligible activities under the CRA be expanded, and that CRA exams be designed so as not to condone or support housing displacement.

Lead Organization

Americans for Financial Reform Education Fund

More Information

Click here to read the letter in full.

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Groups push for reforms that make Community Reinvestment Act race- and climate-conscious   (CRA-Reform-Letter.pdf)