May 28, 2020

LAWT News Service


Marc H. Morial, President and CEO of the National Urban League, released the following statement in response to the Office of the Comptroller of the Currency’s issuance of a final rule that imposes changes to implementation of the Community Reinvestment Act  of 1977.

Notably, two of the three federal agencies charged with enforcing the CRA—the Federal Reserve and the Federal Deposit Insurance Corp­oration — did not join the final rule.  Moreover, the Fed has proposed a different approach that better aligns with the original intent of CRA.  The CRA was enacted in 1977 to combat generations of lending discrimination and redlining by requiring banks to better meet the lending needs of the communities in which they are chartered to do business, including underserved communities of color that continued to face barriers accessing credit despite the passage of crucial federal fair lending laws.

“While I share the view that technological advancements in the banking sector require modernization of the CRA, I am concerned that this OCC final rule represents a serious shift from the CRA’s original intent to address the history of redlining, disinvestment, and the market failures that continue to leave communities of color in America underserved.

“The OCC’s rule gives banks more credit for doing less CRA activity, resulting in significantly fewer lending opportunities and bank services for the many low- and moderate-income families nationwide who most need the vital access to capital made possible by the CRA. Worse, the OCC’s rule favors investments that are already served by current market trends and for which the CRA was never intended to serve. We appreciate the Federal Reserve’s leadership in proposing a change that aligns with the CRA’s original intent, and urge that the OCC’s final rule be immediately reversed. 

“Racial discrimination in lending and access to financial services is alive and well, and we will hold the federal government accountable to its duty to ensure all Americans have equal opportunity to the American Dream of homeownership and financial security.  As a civil rights organization devoted to promoting homeownership and fair lending laws, the National Urban League will continue to fight to maintain the full force of our federal civil rights laws—including the CRA.”


Category: Business