The Community Reinvestment Act was originally passed by Congress in 1977 to ensure that banks receiving deposits from a community also serve that community’s credit needs by extending loans in the area. Almost 45 years later, the Board of Governors of the Federal Reserve, along with the FDIC and the OCC, have jointly proposed an overhaul of how the CRA is implemented to account for substantial changes in how national banks operate today.

In a contributed article for National Mortgage Professional, Marty Green discusses the impact of the overhaul on non-bank mortgage companies. He explains why the expansion of the Community Reinvestment Act is a solution in search of a problem, arguing that equating non-bank mortgage companies to traditional banks, as the CRA does here, is misguided.

Read the full article here.