A group of 30 Democratic senators told federal banking regulators last week they oppose efforts to weaken the Community Reinvestment Act.
In letters to the four banking agencies, the Democrats said the banker-backed proposal "dramatically weakens the effectiveness of CRA, develops a weak predatory lending compliance standard, and will have a negative impact on economic development and access to low-cost services in low- and moderate-income neighborhoods across our nation."
The proposal would increase the number of banks and thrifts eligible for the streamlined CRA exam by 1,100, allowing them to focus on just lending and not investment and services to the community. The streamlined process would also ease the lending requirements. The letter was sent to the Federal Reserve, Comptroller of the Currency, FDIC and Office of Thrift Supervision.
