Published: February 2021

Over 100 groups call on Federal Reserve to Strengthen CRA

More than 100 national and local civil rights, fair lending and consumer rights organizations have urged the Federal Reserve Board to strengthen the Community Reinvestment Act (CRA), a key anti-redlining and civil rights law. In detailed comments that addressed issues from access to credit, location of bank branches and investments in underserved communities, the groups laid out a plan for the Biden Administration to leverage CRA to ensure an equitable recovery from the ongoing economic, racial justice and public health crisis.

In a letter to the Federal Reserve Board (Fed), coalition members expressed appreciation of the direction the Fed has embarked on to make bank ratings more objective and transparent in an effort to “more effectively meet the needs of low- and moderate-income (LMI) communities and address inequities in credit access.” However, advocates caution that the Fed must not end up with a set of proposals that replicate existing Community Reinvestment Act (CRA) ratings, as this will not help communities devastated by COVID-19. The proposal serves as an important starting point for an interagency rulemaking that will strengthen the CRA and take a critical step towards more financially resilient communities and an equitable pandemic recovery.

 

Lead Organization

Americans for Financial Reform (AFR)

Other Organizations

AFR | National Community Reinvestment Coalition (NCRC) | National Community Reinvestment Coalition (NCRC) | Better Markets | Center for Community Progress | Community Reinvestment Fund, USA | Consumer Action | Consumer Federation of America | Families USA | NAACP | NAACP Legal Defense and Educational Fund, Inc. (LDF) | National Association for Latino Community Asset Builders | National Association of Real Estate Brokers (NAREB) | National Consumer Law Center (on behalf of our low-income clients) | National Housing Resource Center | National NeighborWorks Association | National Urban League | Opportunity Finance Network | Public Citizen | Small Business Majority | The Leadership Conference on Civil and Human Rights | U.S. Conference of Mayors | U.S. PIRG Education Fund

More Information

Click here to read the letter in full.

For more information, please visit AFR.

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