Legislation that would expand the Community Reinvestment Act (CRA) to include nondepository mortgage lenders has been introduced by Rep. Luis Gutierrez, D-Ill.
‘It was the failure to include more of the financial services industry under the standards of CRA that contributed to this crisis or at least made it much worse,’ Rep. Gutierrez said. ‘We've learned that had mortgage brokers, the subsidiaries of bank holding companies, and those that helped to finance so many of these toxic, predatory mortgages been held to the standards of the CRA, we might have avoided this crisis. That's one of the main goals of this bill.’
CRA only covers depository banks and thrifts; it does not include credit unions or nondepository financial services institutions. The legislation (H.R.6334), known as the American Community Investment Reform Act of 2010, is co-sponsored by Reps. Maxine Waters, D-Calif., Eddie Bernice Johnson, D-Texas, and Al Green, D-Texas.
Source: Office of Rep. Luis Gutierrez