Regulators should rethink proposed CRA changes, NAAHL says

The National Association of Affordable Housing Lenders (NAAHL) is urging federal banking regulators to reconsider proposed changes to the Community Reinvestment Act (CRA), warning that higher asset thresholds and other revisions could reduce financing for affordable housing and community development, particularly in rural areas and smaller markets. In comments filed Tuesday with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp. (FDIC), NAAHL said the proposed rule could weaken incentives for banks to finance affordable housing, small businesses and community facilities. “Sweeping changes to CRA could jeopardize the partnerships driving our housing, small business, and community development ecosystems, putting capital for housing supply and local economies at risk,” the letter stated. “Without the private capital catalyzed by CRA, communities could see more deals fall through, fewer business opportunities, and less support for the hospitals, childcare facilities, and schools serving LMI (low- and moderate-income) people and places that make daily life more affordable for families.” NAAHL specifically opposed changes to bank asset thresholds ...