{"id":631,"date":"2022-11-14T07:25:47","date_gmt":"2022-11-14T10:25:47","guid":{"rendered":"https:\/\/noticias-gerais.online\/?p=631"},"modified":"2023-02-21T23:33:15","modified_gmt":"2023-02-22T02:33:15","slug":"a-criacao-de-regras-de-cra-deve-revigorar-o-investimento-em-cdfis-e-estender-alem-dos-bancos-normais","status":"publish","type":"post","link":"https:\/\/noticias-gerais.online\/en\/a-criacao-de-regras-de-cra-deve-revigorar-o-investimento-em-cdfis-e-estender-alem-dos-bancos-normais\/","title":{"rendered":"CRA rulemaking should reinvigorate investment in CDFIs and extend beyond regular banks"},"content":{"rendered":"

The Federal Reserve, OCC, and FDIC's plan to review and modernize the Group Reinvestment Act (CRA) is long overdue. Initially passed in 1977 and amended in 1995, the CRA relied on federal regulatory oversight and incentivized federally insured banks to serve the communities in which they operate.<\/span><\/p>\n

The CRA tracks banks' support for marginalized, low-income borrowers and distinct neighborhoods that have historically been underserved through discriminatory practices and redlining. Limitations to legislation, such as its focus on the actual location of bank branches, have ignored the FinTech revolution of the last two years and continue to overlook marginalized communities and communities in banking deserts that are not served through physical branches.<\/span><\/p>\n

The proposed rule-making addresses some of these obstacles head-on and will reinvigorate greater partnerships between large, established banks and group-building tax associations (CDFIs) with access to and relationships in low-income and central communities where capital is most needed.<\/span><\/p>\n

Banking partnerships, loans, and investments in CDFIs are essential tools for fulfilling the Neighborhood Reinvestment Act. According to the proposed guidelines, CRA assessments will move beyond outdated geographic barriers and trust banking activities associated with the flexibility of updated banking services, including mobile banking, branchless banking, and hybrid models. Banks will need to demonstrate that they are actively attractive with low- to moderate profit margins in communities, regions, and across the country. This should further encourage mid-sized fiscal institutions with large balance sheets to allocate resources to over 1,300 CDFIs on the ground in underserved communities to meet expanded needs.<\/span><\/p>\n

Like banks, many CDFIs are further modernizing their equipment and capabilities to better serve target communities, providing additional alternatives for effective CRA compliance and for traditional banks to influence underserved communities. Like others in the financial provider sector, contemporary CDFIs serve underserved communities with expertise and innovation. The increasingly distinct loan products offered with the help of CDFIs reflect the realities of today's rapidly changing economic climate and the diverse lives of unemployed household owners. CDFIs can and have developed creative loan items to serve invaluable borrowers with non-traditional cases that bypass access to mortgages offered through traditional banks.<\/span><\/p>\n

To comply with updated CRA regulations that appear to be unfavorable to a bank's native group, organizations can still leverage local, regional, and national CDFIs dedicated to enforced mission tax resources. The persistent wealth and ownership gap in the U.S. leaves Black, Latino, and low-income families out of the upgrading economy and, as a result, limits the overall financial boom. Investments in CDFIs are a proven option to extend access to the functions, credit scores, reasonable market-based and non-predatory loans that these communities deserve to break free from the cycles of expensive debt and financial challenges that deter the financial boom and limit the opportunity for generational wealth building.<\/span><\/p>\n

While regulators are keen on increasing and modernizing CRA guidelines, they must also accept as truth the expansion of CRA requirements to cover non-financial institutions that make up a large part of today's lending economic system. Non-financial institution personal loan lenders account for more than two-thirds of housing loans in the US, yet they are not bound by the same group investment requirements as traditional banks. It's no secret that their song list is below star when it comes to serving low-income and minority communities, despite reasonable modern housing laws. If these lenders stay out of the CRA ecosystem, there is no doubt that they will continue to carry the most economically and protected communities at a much higher cost than others.,<\/span><\/p>\n

By increasing the need for CRA (Credit Rights Assessment) for non-bank lenders, regulators will ensure more equitable service to diverse and low-income communities through direct lending from these associations and other partnerships and investments in CDFIs (Credit Rights Investment Funds).<\/span><\/p>\n

Leaders and advocates across the CDFI, affordable housing, financial\/racial justice, and social investment landscape can still leverage the capabilities of this moment and offer feedback on the proposed regulation. We should encourage these reforms, which can make it less complicated for banks to meet CRA requirements through investment and partnership with CDFIs, and reach out for even stronger CRA needs that encompass every financial institution and non-bank financial institutions. With massive funding and concentrated efforts, we will close the persistent racial wealth gap that plagues our country. Compliance by financial associations with requirements, direct assistance to target communities, and support for CDFIs under pressure to meet them is just one, albeit important, aspect.,<\/span><\/p>\n

Faith Bautista is the president and CEO of the Asian American Coalition (naac.org, formerly Mabuhay Alliance), an application-driven nonprofit organization that provides housing counseling, small business loans, and tech tip functions to minority and low-income populations.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

O conceito do Federal Reserve, OCC e FDIC para revisar e modernizar o grupo Reinvestment Act (CRA) est\u00e1 muito atrasado.\u00a0No in\u00edcio, aprovado em 1977 e alterado em 1995, o CRA baseava a supervis\u00e3o com a ajuda de reguladores federais e incentivava os bancos com seguro federal a servir as comunidades em que atuam. O CRA […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-631","post","type-post","status-publish","format-standard","category-economia"],"_links":{"self":[{"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/posts\/631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/comments?post=631"}],"version-history":[{"count":0,"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/posts\/631\/revisions"}],"wp:attachment":[{"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/media?parent=631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/categories?post=631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noticias-gerais.online\/en\/wp-json\/wp\/v2\/tags?post=631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}