February 23, 2009

Boston and San Francisco Federal Reserve Publication
Captures Views on Community Reinvestment Act Reform

SAN FRANCISCO, February 23, 2009—The Federal Reserve Banks of Boston and San Francisco announced today the publication of a collection of research papers and essays on the Community Reinvestment Act (CRA).  The publication, Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act , includes contributions from academic researchers, financial institution representatives and trade groups, current and former regulators, community development professionals, and consumer advocates.  The collection documents changes in the financial services industry since the CRA was passed in 1977, and offers proposals for CRA reform.  It also addresses the critics of the act who have pinned the blame for the subprime mortgage crisis on the CRA. The purpose of the publication is to encourage informed debate about the future of the CRA.

In the foreword to the book, Fed Presidents Eric Rosengren and Janet Yellen write, "The Community Reinvestment Act (CRA), enacted in 1977, has fostered access to financial services for low- and moderate-income communities across the country. Together with other antidiscrimination, consumer protection, and disclosure laws, the CRA remains today a key element of the regulatory framework, encouraging the provision of mortgage, small business, and other credit, investments, and financial services in low- and moderate-income neighborhoods."

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