Bankers vs. Activists: Battle Lines Form Over Low-Income Lending Rules
“In the years since the law’s passage, such lending grew, but so too did a thicket of rules and regulations related to the law. In the process, the CRA became a weapon for community groups looking to force banks to commit even more funds to poorer areas. Banks grumbled, but they usually paid up, sometimes giving money to the community groups themselves. Messrs. Mnuchin and Otting were the rare bankers to fight back. Community groups agree the regulations need to be updated, but worry changes could mean lower-income borrowers would have less access to loans and banking services. Ms. Gonzalez, executive director of the California Reinvestment Coalition, says the plans are driven by the two officials’ personal experience.”