June 11: Jobs and Homes Now! A Day of Action
On June 11, 2009, in 50 places across the country, National Community Reinvestment Coalition members and community partners will hold public assemblies at courthouses, legislative buildings, or unemployment offices to call for local, state and federal action to create jobs, stop foreclosures, and rebuild communities. Visit NCRC’s website for information about events near you.
NCRC is leading a campaign to modernize the Community Reinvestment Act (CRA), and AFFIL and hundreds of other groups have signed onto their call to action.
As we mentioned before, certain lenders are subject to CRA “exams” which grade them based on their work in low and moderate income communities. Contrary to some perceptions, CRA exams do not give banks high scores for promoting unsustainable lending. In fact, study after study confirms that banks subject to CRA scrutiny made only a tiny fraction of the toxic subprime loans which have led to so many foreclosures.
CRA exams encourage banks to lend in conformity with safety and soundness. If all lenders (including non-bank mortgage companies) had been subject to these exams, we would likely be facing a much smaller housing crash than we are. The CRA Modernization Act (H.R. 1479) being discussed at today’s breakfast would make this common sense change so that all lenders would be subject to CRA scrutiny. If the past thirty years are any guide, this will lead to more responsible behavior by more lenders, and greater investments in low and moderate income communities.