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Full-Text Articles in Law
The Cra Implications Of Predatory Lending, Kathleen Engel, Patricia Mccoy
The Cra Implications Of Predatory Lending, Kathleen Engel, Patricia Mccoy
Patricia A. McCoy
Traditionally, policymakers, communities, and industry have regarded the Community Reinvestment Act ("CRA") as a positive mandate for banks and thrifts to do good by increasing investment in low- and moderate-income ("LMI") neighborhoods. When Congress enacted CRA, it was inconceivable that LMI neighborhoods might eventually receive too much credit in the form of abusive mortgages. However, by the late 1990s, predatory mortgages- exploitative high-cost loans to gullible borrowers-were ravaging the inner cities. We address the question: given the surge in predatory lending, how should CRA respond? CRA and federal subsidies to regulated lenders can create perverse incentives for lenders to engage …
An Analysis Of The Implementation And Impact Of The 2004-2005 Amendments To The Community Reinvestment Act Regulations: The Continuting Importance Of The Cra Examination Process, Josh Silver, Richard D. Marsico
An Analysis Of The Implementation And Impact Of The 2004-2005 Amendments To The Community Reinvestment Act Regulations: The Continuting Importance Of The Cra Examination Process, Josh Silver, Richard D. Marsico
Articles & Chapters
In 2004 and 2005, the four federal banking agencies that enforce the Community Reinvestment Act (CRA) amended their CRA regulations. Community groups were concerned that these amendments would have a negative impact on bank CRA performance. In particular, they were concerned that community development lending and investment and the provision of bank branches and other banking services in low- and moderate-income neighborhoods would decline. This article studies the impact of the changes. In summary, the study found that: 1) the CRA examination process has an impact on bank behavior; 2) community development lending and investment by certain lending institutions declined …
The Cra Implications Of Predatory Lending
The Cra Implications Of Predatory Lending
Patricia A. McCoy
This article considers the Community Reinvestment Act's role in combating predatory lending. It provides an overview of the CRA, explains how CRA-covered lenders may enable predatory lending and explores the relationship between the CRA, federal subsidies and predatory lending. The article concludes that the CRA should be used to penalize lenders that engage in predatory lending and recommends that federal bank regulators use CRA to sanction behavior that could encourage further predatory lending.
A Guide To Enforcing The Community Reinvestment Act, Richard D. Marsico
A Guide To Enforcing The Community Reinvestment Act, Richard D. Marsico
Articles & Chapters
No abstract provided.