Number
181061
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. HAMILTON, ZIELINSKI, BAUMAN, JOHNSON, BORKOWSKI, RAINEY, LEWIS, STAMPER, AND COGGS
Title
Substitute resolution supporting the Community Reinvestment Act.
Analysis
This resolution expresses the Common Council’s support for the Community Reinvestment Act and efforts to modernize the law without undermining its goal and intent.
Body
Whereas, The Community Reinvestment Act is a landmark civil rights law enacted on October 22, 1977, to end the practice of redlining by financial institutions where they would draw red lines on maps around neighborhoods where they did not want to offer financial services; and
Whereas, Before the enactment of the Community Reinvestment Act, redlining made it impossible for low- and moderate-income Americans, racial and ethnic minorities and their neighborhoods to access credit services, such as mortgages and business loans, regardless of their qualifications or creditworthiness; and
Whereas, The Community Reinvestment Act states that regulated financial institutions have continuing and affirmative obligations to help meet the credit needs of the local communities in which they are chartered; and
Whereas, The Community Reinvestment Act establishes a regulatory regime for monitoring the level of lending, investments, and services in low- and moderate-income neighborhoods traditionally underserved by lending institutions; and
Whereas, If a regulatory agency finds a financial institution not serving low- and moderate-income neighborhoods, it can delay or deny that institution’s request to merge with another lender, open a branch or expand any of its other services; and
Whereas, A financial institution’s Community Reinvestment Act grade can be downgraded if a federal agency uncovers evidence of illegal, abusive or discriminatory lending on its fair lending exams; and
Whereas, Since 1996, according to an analysis of bank lending data by the National Community Reinvestm...
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