Source: CNBC —
Bank regulators on Thursday proposed the first sweeping changes in more than 25 years to a controversial law aimed at increasing lending to low- and moderate-income communities.
The changes would tailor the Community Reinvestment Act’s approach to making sure banks are not engaging in “redlining,” or refusing to put money in areas often populated by minorities and lower wage earners.
Passed in 1977, the act has been a sore spot among some banks, particularly larger lenders, who complain about the costs and reporting burdens. However, affordable housing advocates say the CRA has been pivotal in providing equal housing opportunities.
