Changes to the Community Reinvestment Act expanded the geographic range.
Multiple U.S. banking and business groups sued the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency for updates to the Community Reinvestment Act. The act outlines rules for fair lending to prevent discrimination, particularly the practice of redlining.
The act requires that banks offer loans equally to residents within the areas they serve. It also outlines standards for federal regulators to gauge how well banks abide by this law.
The three federal bank regulators updated the rules of the Community Reinvestment Act, increasing the area that banks are required to serve. The agencies stated that this change factors in the increase in online banking, modernizing decades-old policy.
The lending groups claim that this update is an overreach of the federal government and could disincentive lending overall.
As the Lord Leads, Pray with Us…
- For prudence for the judge who will hear the case against the government’s expansion of lending areas.
- For officials in the Federal Reserve, FDIC, and Office of Comptroller of the Currency to be discerning as they evaluate their modernizing changes to lending rules.
Sources: Reuters, MSN
