Reinvestment and Cities: A Literature Review of CRA's Impact and Future
||Susan White Haag
|| Brookings Institution
Center on Urban and Metropolitan Policy
||The author extensively examines
extant research on the impact of the CRA on low- and moderate-income
communities and individuals. The review is grouped into five sections:
Lending Patterns in Central Cities, Effects of CRA Regulatory Reform,
CRA Commitments, Impact of Bank Mergers and Acquisitions on Lending,
and The Future of Federal Community Reinvestment Policies.
|| Home mortgage lending
to low- and moderate-income and minority households and neighborhoods
during the 1990s increased at rates exceeding the increases for other
populations and geographies, due in part to the influence of the CRA.
|CRA has helped spawn a community
development industry infrastructure, consisting of collaborations
between financial institutions, regulatory agencies, secondary market
organizations, and inner-city communities. These collaborations have
resulted in the creation of financial vehicles for community reinvestment,
and have brought CRA activities into the financial mainstream.
|Changes in the marketplace threaten
the future efficacy of the CRA.
|Number of pages:
||142 (including extensive bibliography)