“Fed’s Duke:Time For Review Of Community Reinvestment Act”
“Federal Reserve Governor Elizabeth Duke called Monday for a thorough review and update of a federal law that limits discriminatory credit practices in low-income neighborhoods.
“Today’s financial landscape is vastly different from the one in which the Community Reinvestment Act was enacted in 1977,” Duke said. “In the wave of the foreclosure crisis, there are new challenges.”
Congress passed the Community Reinvestment Act in 1977 to reduce discriminatory credit practices in poor neighborhoods, a practice known as red-lining. There has been no comprehensive review of the law since 1995.
Duke’s comments came at the first in a four-part series of hearings across the country on regulatory changes to the CRA being held by the Fed’s Board of Governors, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision.” Read more.
