Landmark Anti-Redlining Law Is in Trouble
Regulators are updating Community Reinvestment Act protections, but will they do it without giveaways to banks? by Paula Melton Redlining may be coming back. The practice of denying loans to people and businesses based on their neighborhood effectively became illegal in the U.S. in 1977 with passage of the Community Reinvestment Act (CRA). This law requires deposit-accepting banks to meet the credit needs of all neighborhoods throughout their “assessment area,” the geographical tract in which they do business. Banks are examined using an elaborate process and receive a grade that’s publicly