Published: March 2022

Stronger CRA rules still needed to ensure equal access to credit

With a new proposal imminent from federal bank regulators, community, civil rights and consumer advocacy groups stress the urgency of updating the Community Reinvestment Act (CRA). The CRA is a civil rights era law meant to end and reverse the impact of 20th century redlining by requiring banks to lend in all communities where they are chartered to do business. Critical changes to both the process and metrics of CRA exams that evaluate lender performance, as well as updates to how digital banks are assessed, are needed to ensure that communities of color have equal access to credit to buy homes or build and grow businesses.

Consumer Action joined 123 other organizations in outlining priorities for the CRA rule changes expected to be proposed soon by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp. (FDIC) and the Federal Reserve Board. The CRA is a civil rights era law meant to end and reverse the impact of 20th century redlining, a racist system that starved communities of color of access to credit to buy homes or build and grow businesses. The CRA requires banks to lend in all communities where they are chartered to do business.

Lead Organization

National Community Reinvestment Coalition (NCRC)

Other Organizations

Americans for Financial Reform Education Fund | Better Markets | Ceres | Consumer Action | Corporation for Supportive Housing (CSH) | National Alliance of Community Economic Development Associations (NACEDA) | National Association of American Veterans, Inc. | National CAPACD | National Community Reinvestment Coalition | National NeighborWorks Association | National Urban League | Opportunity Finance Network | Poverty and Race Research Action Council | Public Citizen | The Leadership Conference on Civil and Human Rights | U.S. Conference of Mayors | UnidosUS

More Information

Click here to read the position paper in full.

For more information, visit NCRC.

 

Download PDF

No Download Available