{"id":71794,"date":"2020-02-12T16:00:47","date_gmt":"2020-02-12T21:00:47","guid":{"rendered":"https:\/\/ncrc.org\/?p=71794"},"modified":"2022-03-08T14:04:03","modified_gmt":"2022-03-08T19:04:03","slug":"proposed-changes-to-cra-puts-billions-in-lending-at-risk-each-year","status":"publish","type":"post","link":"https:\/\/ncrc.org\/proposed-changes-to-cra-puts-billions-in-lending-at-risk-each-year\/","title":{"rendered":"Proposed Changes to CRA Puts Billions in Lending at Risk Each Year"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"71794\" class=\"elementor elementor-71794\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-29ab1c54 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"29ab1c54\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9b35edc\" data-id=\"9b35edc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2e77f93a elementor-widget elementor-widget-text-editor\" data-id=\"2e77f93a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"normal\"><span lang=\"EN\">Nearly $3 trillion in home and small business loans from banks went to low- and moderate-income (LMI) borrowers and communities over the last decade. Proposed changes to the Community Reinvestment Act (CRA), which requires banks to make loans in all of the communities where they take deposits, including poor ones, could significantly decrease this lending, putting at risk billions in lending each year nationwide.<\/span><\/p><p class=\"normal\"><span lang=\"EN\">An NCRC analysis of lending data reported by banks showed banks issued more than $2.2 trillion in home loans and more than $564 billion small business loans to LMI borrowers and communities from 2009 through 2018.<\/span><\/p><p class=\"normal\"><span lang=\"EN\"><a href=\"https:\/\/ncrc.org\/treasurecra\/\">The proposed changes to CRA rules<\/a><\/span><span lang=\"EN\">, from the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Company (FDIC), would allow banks to fail their CRA exams in nearly half of the geographical areas in which they are examined. Common sense, supported by\u00a0<\/span><span lang=\"EN\"><a href=\"https:\/\/www.philadelphiafed.org\/community-development\/publications\/cascade\/96\/04_federal-reserve-study\" target=\"_blank\" rel=\"noopener\">Federal Reserve research<\/a><\/span><span lang=\"EN\">, suggests that lending in some communities would decrease. Banks could choose to concentrate their lending in some places and ignore others &#8211; potentially nearly half of the communities where current rules now require them to make loans. Moreover, the exams would feature a single metric (CRA activities divided by deposits) that would motivate banks to favor large deals, including sports stadiums, over small dollar home and small business lending.<\/span><\/p><p class=\"normal\"><span lang=\"EN\">See what is at risk in your community with this tool. Include these findings in a comment letter about the proposed rules.\u00a0<\/span><span lang=\"EN\"><a href=\"https:\/\/ncrc.org\/treasureCRA\/#take-action\">Submit your comment<\/a><\/span><span lang=\"EN\">\u00a0by March 9, 2020.<\/span><span lang=\"EN\"><a href=\"https:\/\/ncrc.org\/treasureCRA\/#take-action\">\u00a0Visit Treasure CRA<\/a><\/span><span lang=\"EN\">\u00a0for more details about how to comment.<\/span><\/p><p class=\"normal\">\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9fe0fed elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9fe0fed\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-abe58a9\" data-id=\"abe58a9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e7b2198 elementor-widget elementor-widget-html\" data-id=\"e7b2198\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class='tableauPlaceholder' id='viz1581451775060' style='position: relative'><noscript><a href='#'><img alt=' ' src='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;LM&#47;LMISmallBusinessLending2009-2018v2&#47;Dashboard13&#47;1_rss.png' style='border: none' \/><\/a><\/noscript><object class='tableauViz'  style='display:none;'><param name='host_url' value='https%3A%2F%2Fpublic.tableau.com%2F' \/> <param name='embed_code_version' value='3' \/> <param name='site_root' value='' \/><param name='name' value='LMISmallBusinessLending2009-2018v2&#47;Dashboard13' \/><param name='tabs' value='no' \/><param name='toolbar' value='yes' \/><param name='static_image' value='https:&#47;&#47;public.tableau.com&#47;static&#47;images&#47;LM&#47;LMISmallBusinessLending2009-2018v2&#47;Dashboard13&#47;1.png' \/> <param name='animate_transition' value='yes' \/><param name='display_static_image' value='yes' \/><param name='display_spinner' value='yes' \/><param name='display_overlay' value='yes' \/><param name='display_count' value='yes' \/><\/object><\/div>                <script type='text\/javascript'>                    var divElement = document.getElementById('viz1581451775060');                    var vizElement = divElement.getElementsByTagName('object')[0];                    if ( divElement.offsetWidth > 800 ) { vizElement.style.width='650px';vizElement.style.height='447px';} else if ( divElement.offsetWidth > 500 ) { vizElement.style.width='650px';vizElement.style.height='447px';} else { vizElement.style.width='100%';vizElement.style.height='727px';}                     var scriptElement = document.createElement('script');                    scriptElement.src = 'https:\/\/public.tableau.com\/javascripts\/api\/viz_v1.js';                    vizElement.parentNode.insertBefore(scriptElement, vizElement);                <\/script>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ef28a4e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ef28a4e\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7cd7b38\" data-id=\"7cd7b38\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7800fa7 elementor-widget elementor-widget-text-editor\" data-id=\"7800fa7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"normal\"><b><span lang=\"EN\">Methodology<\/span><\/b><\/p><p class=\"normal\"><span lang=\"EN\">This research considered loans with low or moderate income (LMI) borrowers or in LMI census tracts to be CRA qualified.\u00a0\u00a0In addition, business loans to businesses that earned less than $1 million a year received CRA credit. There is an unknown degree of overlap between business loans that are both in an LMI tract and to a small business so we have kept them as separate figures for this analysis. All dollars are adjusted for inflation to January 2018 values.\u00a0<\/span><span lang=\"EN\"><a href=\"https:\/\/data.bls.gov\/cgi-bin\/cpicalc.pl\" target=\"_blank\" rel=\"noopener\">https:\/\/data.bls.gov\/cgi-bin\/cpicalc.pl<\/a><\/span><span lang=\"EN\">\u00a0.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Nearly $3 trillion in home and small business loans from banks went to low- and moderate-income (LMI) borrowers and communities over the last decade. Proposed changes to the Community Reinvestment Act (CRA), which requires banks to make loans in all of the communities where they take deposits, including poor ones, could significantly decrease this lending, [&hellip;]<\/p>\n","protected":false},"author":932,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_angie_page":false,"content-type":"","_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"page_builder":"","footnotes":""},"categories":[1327],"tags":[35,3520,2821],"class_list":["post-71794","post","type-post","status-publish","format-standard","hentry","category-research","tag-research","tag-research_brief","tag-treasurecra"],"acf":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false},"uagb_author_info":{"display_name":"NCRC","author_link":""},"uagb_comment_info":0,"uagb_excerpt":"Nearly $3 trillion in home and small business loans from banks went to low- and moderate-income (LMI) borrowers and communities over the last decade. Proposed changes to the Community Reinvestment Act (CRA), which requires banks to make loans in all of the communities where they take deposits, including poor ones, could significantly decrease this lending,&hellip;","_links":{"self":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts\/71794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/users\/932"}],"replies":[{"embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/comments?post=71794"}],"version-history":[{"count":0,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts\/71794\/revisions"}],"wp:attachment":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/media?parent=71794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/categories?post=71794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/tags?post=71794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}