Community Development Innovation Review

February 2009

Putting Race Explicitly into the CRA


The Community Reinvestment Act (CRA) was designed to correct market failures thirty years ago. The reimagining of CRA must address the remnants of twentieth-century market and government failures with twenty-first century solutions. Financial institutions and regulators must revisit the intent of the CRA, which states that regulators are “to assess an institution’s record of meeting the credit needs of its entire community [emphasis added], including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution.” I proffer that the entire community includes racial and ethnic minorities, and the CRA should be expanded to address directly these underserved parts of the community.

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Other articles in this issue

A Framework for Revisiting the CRA

The Community Reinvestment Act and the Recent Mortgage Crisis

The 30th Anniversary of the CRA: Restructuring the CRA to Address the Mortgage Finance Revolution

The CRA within a Changing Financial Landscape

The Community Reinvestment Act: Outstanding, and Needs to Improve

It’s the Rating, Stupid: A Banker’s Perspective on the CRA

The Community Reinvestment Act at 30 Years

A Tradable Obligation Approach to the Community Reinvestment Act

The Community Reinvestment Act: Past Successes and Future Opportunities

A More Modern CRA for Consumers

CRA Lending During the Subprime Meltdown

Expanding the CRA to All Financial Institutions

What Lessons Does the CRA Offer the Insurance Industry?

CRA 2.0: Communities 2.0

The Community Reinvestment Act: 30 Years of Wealth Building and What We Must Do to Finish the Job

The CRA as a Means to Provide Public Goods

Community Reinvestment Emerging from the Housing Crisis

A Principle-Based Redesign of HMDA and CRA Data

The Community Reinvestment Act: Good Goals, Flawed Concept

A Banker’s Quick Reference Guide to CRA