Label
Council Members Melden and Moline
Title
Resolution to protect the Federal Community Reinvestment Act - lending & investment in low- and moderate communities around the country.
Summary
WHEREAS, the Federal Community Reinvestment Act (CRA) was a landmark civil rights law enacted on October 12, 1977 to end the discriminatory practice of "redlining" by financial institutions where they would draw a red line on a map around the neighborhoods they did not want to offer financial services; and
WHEREAS, before the enactment of the CRA, redlining made it nearly 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 City of Toledo is still experiencing the negative impact of redlining in that the same communities that were prevented from obtaining mortgage loans are still experiencing little to no lending; and
WHEREAS, the City of Toledo has experienced a significant loss of FDIC insured bank branch locations in low-income and minority neighborhoods; and
WHEREAS, data provided through the Home Mortgage Disclosure Act reveals that in recent years the largest banks in the Toledo area have provided little or no home mortgage lending in low-income and minority census tracts; and
WHEREAS, discrimination still exists in lending; and
WHEREAS, the CRA 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 CRA 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, CRA examinations conducted by three federal agencies: the Office of the Comptroller of the Cur...
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