Otting: Praise for current CRA, promise for billions more funds flowing from modernization

After praising anti-redlining laws and rules as vital tools for increasing capital flow to underserved communities, the federal regulator of national banks said modernizing the law and rules would allow “billions more” dollars that could reach low- and moderate-income communities.

Comptroller of the Currency Josesph Otting, in remarks to a group in California Tuesday, said the current Community Reinvestment Act (CRA) and rules have resulted in trillions of dollars invested in underserved neighborhoods since 1977.

However, he added, modernizing CRA to “clarify what counts, update where CRA activity counts, evaluate CRA performance more objectively, and make reporting more timely and transparent” would result in the additional flow of billions of funds to the communities.

Otting said he reached that conclusion “after talking with thousands of community advocates, development professionals, policy makers, and bankers.”

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