Without CRA, crisis could have been worse says new Fed report

The Federal Reserve Bank of Dallas’ recent report entitled “The CRA and Subprime Lending: Discerning the Difference” concludes that the Community Reinvestment Act “is unequivocally not to blame for the housing market’s fall. The numbers just don’t add up.” Moreover, data from the Board’s staff report suggest that the CRA prevented the subprime situation from being more severe.

This report should encourage more members of Congress to co-sponsor and support the CRA Modernization Act of 2009 (H.R. 1479). The bill currently has 20 co-sponsors and supporters are hoping to increase that to 50 by June 11th. The National Community Reinvestment Coalition has created a CRA Toolbox and has updated information on sponsors and activities.

Woodstock Institute is actively working with NCRC and local leaders to promote fair lending, investments, and financial services in lower-wealth communities through CRA and other methods. Join us on May 12 for the Illinois Community Investment Coalition’s Forum on Regional Reinvestment Priorities.