A Flawed Regulatory Concept: The Community Reinvestment Act
Lawrence J. WhiteJuly 28, 2009
Financial and Monetary, Regulatory Studies Program, Mercatus On Policy, Mercatus, Financial Markets Working Group
Mercatus On Policy
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This Mercatus on Policy explores questions surrounding the Community Reinvestment Act (CRA), enacted by Congress in 1977 in response to the belief that low- and moderate-income communities needed expanded access to credit. The CRA has recently been questioned because of the 2007-2008 financial debacle, and in fact, we conclude that the CRA is not good public policy.
