FOR IMMEDIATE RELEASE
September 30, 2010
Contact: Jackeline Stewart
(202) 785-1670
REVITALIZED COMMUNITY REINVESTMENT ACT WILL FUEL RECOVERY IN HARD-HIT NEIGHBORHOODS
Washington, DC—NCLR (National Council of La Raza), the largest national Latino civil rights and advocacy organization in the United States, applauds today’s release of the “American Community Investment Reform Act of 2010,” which will bring the Community Reinvestment Act (CRA) into the 21st-century banking system. CRA’s effectiveness has been hampered in recent years as its methods and scope have failed to keep pace with new technology and business models. A revamped CRA would expand the capital available for loans, investments, and services to areas where they are most needed—low-income communities and neighborhoods hit hard by the recession.
The bill includes a number of long overdue updates to the original statute, including expanding the financial institutions covered by the law, increasing focus on community development loans and investments, and establishing a more meaningful evaluation scale.
“This legislation is coming at a critical time for families and neighborhoods starved for credit, investment, and financial services as a result of the recession,” said NCLR President and CEO Janet Murguía. “The special attention paid to communities hit hard by foreclosures and unemployment is critical. These communities will not recover without partnerships and capital from the private sector.”
Earlier this year, NCLR testified before the Federal Reserve regarding changes to CRA regulations that could be put in place immediately and improve banking services for all communities. “Updating CRA will create a powerful incentive for the private sector to invest in local community and economic development projects that are fundamental for a real economic recovery,” said Murguía. “I commend Representatives Barney Frank, Maxine Waters, and Luis Gutierrez for their leadership on this legislation and urge Congress to revitalize CRA for our new economy.”
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