Biden administration reverses Trump's 'redlining' changes to bank-anti discrimination law, a reversal pushed by U.S. Senator Sherrod Brown of Cleveland, other Democrats in Congress....The Community Reinvestment Act was enacted by Congress in 1977 to protect poor and minority borrowers against bank discrimination, a law the Trump administration watered down in 2020 only to have President Biden reverse Trump's changes to the law this week...By editor Kathy Wray Coleman of Clevelandurbannews.com and Kathywraycolemanonlinenewsblog.com, Ohios' Black and alternative digital news leaders
Clevelandurbannews.com and-Kathywraycolemanonlinenewsblog.com
WASHINGTON, D.C.- President Joe Biden on Tuesday announced that the Biden administration will repeal the changes made late last year by the Trump administration to a federal law designed to stop banks from discriminating against America's racial minorities and the poor, including Black people.
The reversal action comes after Congressional Democrats like U.S. Sen Sherrod Brown of Cleveland urged the president, who unseated former president Donald Trump via the November presidential election, to reverse Trump's changes to the bank anti-discrimination law that he made before leaving office in January.
Those Trump administration changes to the law, which Civil Rights organizes like the NAACP vehemently oppose, include stripping away Civil Rights of borrowers and introducing more lenient standards that make it easier for banks and mortgage companies to deny Black and poor people home loans while gentrifying urban Black communities with White homeowners who would not ordinarily qualify for the loans.
“Acting Comptroller Hsu and the OCC took a step in the right direction today by announcing that they will reconsider the misguided Community Reinvestment Act rule that the former Comptroller jammed through last year against the advisement of civil rights leaders, community development activists, and local voices,” said Brown in a press release prior to Biden's announcement on Tuesday. “All three banking regulators should now get to work on a joint proposal that will strengthen the CRA and increase investments in under-served communities and communities of color.”
Cleveland is a major American city of some 385,000 people and is majority Black, and the changes to the rule that Trump made impacts poor urban cities across the country like Cleveland with a loop hole for banks to deny lending funds for homes and other resources to low income and minorities in these communities.
Biden said Tuesday that the Office of the Comptroller of the Currency, one of the nation's bank regulators, will re-write regulations it wrote in 2020 governing the law at issue known as the Community Reinvestment Act.
It was first enacted by Congress in 1977 and requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods
The law, before Trump got a hold on it, required banks to lend to poor borrowers and to document how well they are lending to minorities and others in the communities where they are located, an effort to make sure that banks are not just lending or are disproportionately lending to the rich and to White customers.
It was aimed at reducing redlining, which is the practice of banks drawing a 'red line' around certain poor, Black and other minority neighborhoods and refusing to lend to individuals living in those neighborhoods
The OCC has said that it will scratch the changes in the law made in December under Trump's former Comptroller of the Currency, Joseph Otting, and the agency, now under the leadership of current CCC Michael J. Hsu, will rewrite the regulations.
Clevelandurbannews.com and-Kathywraycolemanonlinenewsblog.com, Ohio's most read Black digital newspaper and Black blog.Tel: (216) 659-0473 and Email: editor@clevelandurbannews.com. Kathy Wray Coleman, editor-in-chief, and who trained for 17 years at the Call and Post Newspaper in Cleveland, Ohio. We interviewed former president Barack Obama one-on-one when he was campaigning for president. As to the Obama interview, CLICK HERE TO READ THE ENTIRE ARTICLE AT CLEVELAND URBAN NEWS.COM, OHIO'S LEADER IN BLACK DIGITAL NEWS.
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