This was originally published on January 31, 2020 in the OCDCA Newsletter.
Federal News
Take Action to Defend the Community Reinvestment Act
Recently the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) released a Notice of Proposed Rulemaking (NPR) to "reform" the CRA. Former FDIC chair and current board member Martin Gruenberg explained succinctly that it's a "deeply misconceived proposal that would fundamentally undermine and weaken the CRA."
OCDCA and many national advocates are deeply concerned by the proposal. The direction is almost exclusively oriented toward making regulatory compliance easier while limiting significant opportunities to enhance CRA's impact on serving the needs of LMI communities. There is real fear that the net effect will decrease lending and access to capital in the communities that need it the most. A modest 10% decrease in CRA lending would cause Ohio to realize a loss of $975 million in LMI mortgage and small business lending over five years. That's nearly $1 billion for every 10% decrease in CRA lending.
OCDCA urges every member to submit a public comment. The National Community Reinvestment Coalition (NCRC) has developed a user friendly toolkit and template to make submitting a comment and getting involved easy. For additional summary information read this article from NACEDA's Frank Woodruff or my opinion piece.
Public comment (March 9 deadline) is critical in building the case against the proposed changes. Tell the OCC and FDIC that any changes to CRA should strengthen it and live up to the spirit and intent of the act - ensuring that LMI communities and communities of color have equal access to capital and credit.
Please take the time to make your voice heard. If you have any questions please contact me at ncoffman@ohiocdc.org or 614-461-6392 ex. 207. Thank you for your advocacy!
Investigation into Opportunity Zones
Opportunity Zones are facing scrutiny and investigation as explained by the New York Times.
Senator Portman Introduces Legislation to Tackle the Eviction Crisis
U.S. Senators Rob Portman (R-OH) and Michael Bennet (D-CO) recently introduced the Eviction Crisis Act to address the national housing crisis crippling millions of Americans who are struggling to rise into the middle class. The intent of the bipartisan legislation is to shed light on the root causes of the eviction crisis, reduce preventable evictions, and limit the devastation to families when eviction is unavoidable. Adjusting for inflation, the median rent payment has risen 61 percent since 1960 while median renter income grew only five percent. In Ohio, six cities also ranked in the nation's 100 "Top Evicting Areas:" Akron (ranked #24, with a 6.06 percent eviction rate), Dayton (#26, 5.94 percent), Toledo (#30, 5.63 percent), Cincinnati (#46, 4.7 percent), Columbus (#52, 4.55 percent), and Cleveland (#53, 4.53 percent).
State News
Virginia Moving to Reform Payday Lending
The enactment of the Ohio Fairness in Lending Act may be leading to meaningful reform in another state. Virginia suffers from some of the worst rates in the country and the reform coalition has momentum with legislation recently passed out of House and Senate Committees. The legislation is based on Ohio's reform model. Similar efforts are percolating in other states such as Kansas. The Buckeye state will be cheering them on.