5 takeaways from Treasury’s call to action on CRA
By Rachel Witkowski
Bank regulators are gearing up to modernize their policy on Community Reinvestment Act enforcement, but the CRA reform effort appeared to benefit from a jump-start Tuesday thanks to the Treasury Department. Industry representatives, analysts and consumer advocates all praised the Treasury report recommending a slew of CRA reforms that could serve as a jumping off point for regulators that seemed poised for another attempt at updating their decades-old policy. The Treasury “released an astonishingly progressive set of recommendations to reform implementation of the Community Reinvestment Act,” Federal Financial Analytics said in a note Tuesday. “If these are taken up by the federal banking agencies — and they will be — banks would do more for their communities and thus rely a lot less on” government-sponsored “lending to show they care even when they really don’t.”