Fed official: Banks need to help rent-burdened customers save for homeownership
“A top Federal Reserve official said Friday that regulators must use the coming update of the Community Reinvestment Act to encourage banks to do more to help rent-burdened customers. The Fed and other regulatory agencies are preparing to revamp the CRA, a 1977 law designed to overcome decades of ‘red-lining’ that effectively blocked access to credit and home ownership for low-income Americans, particularly people of color. Under the law, banks are graded on how much credit they provide to low-income neighborhoods.”