Analysis and points of view on research, trends, issues, ideas and opportunities.
In the Age of Fintech and Bank Competition,CATO Policy Analyst Diego Zuluaga maintained that the Community Reinvestment Act (CRA) should be repealed and replaced with a system of tradable credits. He started off his argument by asserting that the rationale for CRA is outdated since branching restrictions and other regulations that constrained competition have been […]
With proposed changes to Community Reinvestment Act rules expected in late summer or early fall, we must remind federal regulatory agencies not to diminish the importance of home mortgage lending in CRA exams.
Don’t diminish the importance of homeownership in CRA reform Read More »
While many economic indicators are better than they have been in years, leading to recently published reports asserting that income inequality is not as bad as we have been told, many people are working multiple jobs just to get by.
What you need to know about income inequality Read More »
(Download) INTRODUCTION The Community Reinvestment Act (CRA) has leveraged trillions of dollars of loans, investments and services for low- and moderate-income (LMI) borrowers and communities. Since 1996, banks have made more than $1 trillion in community development loans, which finance affordable housing, economic development projects and community facilities for LMI communities. Likewise, banks have issued
The government’s own analysis shows that more than 55,000 children — who are U.S. citizens or otherwise eligible to receive housing benefits — could face eviction under the proposed rule. In 1968 — just a week after Martin Luther King, Jr.’s assassination — Congress passed the Fair Housing Act, or FHA. The law secured everyone’s
Trump’s plan to throw 55,000 children out of their homes Read More »
Bank branches matter. Countering the overwhelming messaging from many banks and even some regulators, the National Community Reinvestment Coalition (NCRC) has published several reports over the years that detail how much branches still matter for consumers and communities, even in 2019. Just look at the number of branches that banks opened in the last year, and it is clear that they also know the value of a physical outpost in the community they want to serve.
Bank branches are still essential for small business communities Read More »
In 2019, the total student loan debt in America is about $1.5 trillion. According to the New York Consumer Credit Panel, adults under 40 hold 65% of the total student loan debt. Although there has been much said about this figure, the income enhancement offered by a college degree still far outweighs the cost of the debt.
Student loan debt impacts homeownership Read More »
On April 11, 1968, following Martin Luther King Jr’s assassination, Congress passed the Fair Housing Act (FHA) which was designed to secure the right to housing no matter their race, color, national origin, disability, familial status, sex or religion. The FHA protects people from discrimination when they are renting or buying a home, getting a
Unfair housing under the Trump administration Read More »
In September 2018, the Federal Deposit Insurance Corporation (FDIC) released the results of a survey of 1,200 banks on small business lending in America. It found that small business lending is threatened by the decline of smaller banks and the reduction of bank branches in many communities. But just as revealing was what the survey didn’t find. More information that would be essential for policy and regulatory decisions remains concealed, invisible to the public.
Small business lending data is the iceberg in our economic ocean Read More »
National Community Reinvestment Coalition (NCRC) President and CEO urged more lending and better service for low- and moderate-income communities (LMI) in remarks they made at two recent hearings on the proposed merger between BB&T Bank Corporation and SunTrust Banks, Inc.
NCRC leaders testify on BB&T/SunTrust merger Read More »
Data is the sunlight that makes possible the fight against discrimination. The Consumer Financial Protection Bureau (CFPB), however, is considering changing its method of disseminating loan data that would make it less readily available to the public and significantly hamper our collective ability to root out unfair and discriminatory practices.
The CFPB needs to keep easy access to HMDA data Read More »
By 2021, the most popular and widely-used interest-rate benchmark, the London Interbank Offered Rate (LIBOR), will no longer exist as a benchmark for the $2 trillion in outstanding loans in the United States. In its place will most likely be the Secured Overnight Financing Rate (SOFR), which is broadly considered to be more robust and realistic than LIBOR. Nearly every borrower in the country that is paying off debt that is set based on the LIBOR will be affected by this change.
By 2021, big changes for interest rates could spell trouble for borrowers Read More »
Data on community development lending and investing is lacking on a census tract level, making the information incomplete and difficult to assess. However, this is not the case for home mortgage lending data and small business loan data. If the federal regulatory agencies truly want to reform CRA, the first place to start is with better data. It would be a win-win for both banks and community organizations by facilitating identification of underserved areas. It would also further CRA’s objectives of directing access to credit and capital where it is needed most.
Increasing community development financing data a necessary component for CRA reform Read More »
As explanations of the racial wealth gap and the persisting structural inequality of the U.S. economy, Dr. Mehrsa Baradaran’s 2017 book, The Color of Money: Black Banks and the Racial Wealth Gap, is the ideal shelf-mate to Richard Rothstein’s The Color of Law: A Forgotten History of How Our Government Segregated America, published the same
Book review: The Color of Money Read More »
In order for the Consumer Financial Protection Bureau (CFPB) to protect millions of consumers from unsound lending, the agency must implement the public disclosure of the enhanced Home Mortgage Disclosure Act (HMDA) data in a rigorous manner that provides comprehensive and public information about loan terms and conditions. NCRC has a mantra about the importance
Robust data on home lending essential to fair and equitable treatment of borrowers Read More »
