Community Reinvestment Act Reform Plan is Suddenly Outdated

American Banker
1 minute read | May.01.2020

Bank regulators were in the process of reshaping a 43-year-old community lending law when the coronavirus pandemic hit, prompting calls from bankers and community advocates alike to suspend rulemaking and revealing how inflexible the proposal could be amid a crisis.

Even absent current economic shock waves, support for the proposed changes to the Community Reinvestment Act has been tepid at best, with banks citing regulatory burden and advocates predicting diminished banking services to communities in need.