Fixing CRA: More Emphasis on Community Development

One of the problems with the enforcement of the Community Reinvestment Act has been the inability of examiners to create standards that can distinguish the level of effort made by different banks and thrifts. The problem isn’t just with the ratings, although they are certainly guilty of this sin. It lies in the construction of examinations, as well.

Community development loans are one of the most significant ways that a bank can extend credit that would otherwise not be available. Loans for (more…)