CRA agreements have always been hard work for community groups because of regulators. When NPA spurred the passage of CRA originally, we thought regulators would enforce the law. But with 97 percent of banks getting passing grades, CRA exams are a joke. Full responsibility for CRA enforcement has always been the job of people in the neighborhoods. When we wanted agreements, we had to do research, demand data, solicit banks, develop products and direct outreach to the borrowers.
Community groups spend precious time and money educating banks and forming effective partnerships.
Whether or not the law has changed, communities still have to fight on a grassroots level to make CRA work. While local groups focus on attaining measurable and achievable CRA agreements, the national policy fight is far from over, thanks to Sen. Phil Gramm s Sunshine amendment. Gramm also pushed through provisions for a Federal Reserve study of the profitability and default rate of CRA loans. Both the Fed study and the sunshine amendment will fuel the anti-CRA fight in Congress. As in the past, Gramm will use his access to information to misinterpret facts and publicize evidence of community extortion.