We’d Prefer That You Purchase to Hold
As will soon be detailed in an our in-depth report, the Federal Reserve’s long-awaited CRA proposal is a comprehensive rewrite that, while preliminary, would dramatically change large bank community-focused lending and investing.  Much of this is now mortgage-focused, meaning that the final CRA framework will have significant single- and multi-family market impact.  Although the Fed clearly wants to emphasize mortgage portfolio lending, it’s not at all sure that LMI communities can live without the secondary market.

GSE-100920.pdf