Community Reinvestment Act

The Community Reinvestment Act (CRA) was passed in 1977 to end discrimination known as redlining. Systemic redlining by the Federal government and banks caused disinvestment in lower-income and minority neighborhoods. CRA requires banks to meet the credit needs of communities where they do business. Shown: a Homeowners Loan Corporation redlining map from the 1930s.

Proposed CRA Rule Would Legalize Redlining

Redlining Map - Home Owners Loan Corporation Philadelphia

The current CRA reform proposal would incentivize the very thing that CRA was intended to fight. The proposed rule requires banks to meet an investment ratio in only a 'significant portion' of their assessment area — and suggests defining 'significant portion' as something more than 50%. So, banks could choose to lend and invest in only the more affluent half of their assessment areas and still receive satisfactory or outstanding CRA ratings. That’s redlining. This proposal could suck billions of dollars out of America’s lowest-income communities.

Notice of Public Rulemaking

The comment period is open through March 9, 2019. The proposed rule changes would have billions of dollars of impact on the bank investments, loans, and services banks in low- and moderate-income communities. It would dramatically reduce investments in lower-income places. NACEDA Executive Director Frank Woodruff explains why in Redlining Would Be Relegalized by CRA Reform Proposal, which was published in in Shelterforce.

The number of comments really matters! We will post a template for your comment letter on this webpage next week, along with information about how to submit a comment and who to copy. It will be important to share your comments with the U.S. Representatives and Senators who represent you and your communities.

CRA Webinar Recording

View our December 19 webinar: CRA, a New Proposed Rule, and the Consequences for Community Organizations. You will need to log in to view the webinar, but do not need to have previously registered.


Statement by Martin J. Gruenberg, Member, FDIC Board of Directors Notice of Proposed Rulemaking: Community Reinvestment Act Regulations
FDIC Website | December 12, 2019
Gruenberg explains why he voted against the Notice of Public Rulemaking, saying it would "fundamentally undermine and weaken the Community Reinvestment Act."

Trump Administration Financial Regulator Seeks to Lower the Bar for Banks to Meet Community Reinvestment Requirements
National Association for Latino Community Asset Builders | December 18, 2019

National Urban League Warns Trump Administration: Don't Weaken Community Reinvestment Act To Allow Racial Discrimination In Lending
National Urban League | December 12, 2019

OCC, FDIC New CRA Reform Proposal Misses the Mark
Center for Responsible Lending | December 12, 2019

View more statements.

Fact Sheets

Protect and Strengthen the Community Reinvestment Act and ANHD's Top Priorities for CRA Reform
Association for Neighborhood Housing & Development

News Feed

Editorial: Proposed banking changes could starve investment where it's needed most
St. Louis Post Dispatch | January 19, 2020

NCRC Submits FOIA Request For Missing Data In CRA Proposed Rule
NCRC Press Release | January 14, 2019

Redlining Would Be Relegalized by CRA Reform Proposal
Shelterforce | January 9, 2020

U.S. Fed at Odds With Bank Regulators on Community Lending Standards
The New York Times | January 8, 2020

Will proposed CRA rule help or hurt Black America?
North Dallas Gazette | December 17, 2019

Financing for Sports Stadiums Could Count as Helping the Poor

Bloomberg | December 16, 2019

View more press coverage.