There appears to be broad consensus that the Community Reinvestment Act could use what the Treasury Department refers to as “modernization.” The big question is whether such future-proofing proves to be just a politically palatable way of embracing the tilt toward deregulation.
The CRA, enacted by Congress in 1977, was created to encourage banks to meet the credit and deposit needs of customers that they serve, including low- and moderate-income communities, while maintaining safe and sound operations. It was, in large part, intended as a response to concerns that financial institutions were “redlining” less affluent neighborhoods and zip codes.
