Housing and Community Developers Oppose Rewriting CRA Rules
Neighborhoods and residents still overcoming decades of redlining and disinvestment, advocates say

4/1/2025

The Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC) have announced their intention to rescind the Community Reinvestment Act (CRA) final rule issued in October 2023. The final rule strengthened its original version which obligated U.S. banks to partner with and finance community groups and low-income borrowers to reverse the effects of redlining. On the announcement, Housing and Community Development Network of NJ President and CEO Staci Berger issued the following statement:

“CRA has put the brakes on discriminatory practices that obstructed economic vitality in lower income communities and helped many individuals become homeowners or small business owners. It has incentivized investment that has strengthened communities by creating thousands of jobs and affordable homes, making a substantial economic impact on New Jersey. Our state has benefited tremendously because of banks engaging with community groups in partnerships that build thriving neighborhoods.

“A strong CRA works to ensure that our economy is healthy, inclusive, and equitable. Those ideals are being demolished by the current Administration with this change. Rescinding the final rule will lower the bar for banks with regard to their CRA obligations and reduce opportunities for lower income communities to flourish.”