Boston, Minneapolis Mandate 'Responsible' Lending by Banks

October 23, 2013
American Banker 

Boston and Minneapolis are the latest in a string of cities -- including Pittsburgh, Kansas City, and at least 10 others -- to pass "responsible banking ordinances" that demand more lending activity in poor neighborhoods. The laws also stipulate that banks disclose more data about the loans they make for affordable housing in economically downtrodden areas as well as report more information on loan workouts and foreclosures in low- and moderate-income markets.

Banks that fail to satisfy the requirements risk losing the city as a customer. While the local provisions are highly similar to those of the federal Community Reinvestment Act, Josh Silver of the National Community Reinvestment Coalition says they have a sharper emphasis. "The CRA has been effective," he concedes, but it applies to wide service areas. "You won't see neighborhoods examined in a CRA exam."

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.