Public Statement Regarding the Recent Community Reinvestment Act Lawsuit

As the People & Places Collaborative, and advocates of community development organizations, low and moderate-income neighborhoods, and communities of color, we are deeply disappointed by the recent lawsuit initiated by the American Bankers Association, the U.S. Chamber of Commerce, the Independent Community Bankers of America, and others, to overturn newly established Community Reinvestment Act regulations. This legal challenge undermines the progress we have tirelessly worked towards to ensure equitable investment in our communities.

The new regulations represent progress and a crucial modernization of how banks fulfill their obligations to invest in our communities. They were finalized after years of information-gathering, stakeholder engagement, research, and analysis, and are a thoughtful compromise, addressing numerous challenging issues to create a more fair and effective framework for investment. This regulation is one of the most powerful tools federal bank regulators have to address systemic inequities in credit access for minority and low- and moderate-income (LMI) individuals and communities. It contributes to higher homeownership rates, increased mortgage lending, investments in entrepreneurship, and higher levels of private community development financing in communities that otherwise struggle to access capital.

We support the proposed new CRA rule as a step forward in shaping a financial marketplace that truly serves all stakeholders. The regulators’ approach in crafting this rule reflects a thoughtful consideration of legal authority and regulatory principles, instilling confidence in its effectiveness. However, this lawsuit poses a significant obstacle to the progress we seek.

Together, we can uphold the principles of fairness, inclusion, and opportunity for all community members. Let us continue working collaboratively towards a future where every individual and neighborhood has access to the resources and support they need to thrive.

The People & Places Collaborative represents community development organizations across the nation. We are committed to creating conditions where residents can shape the destiny of their neighborhoods, securing their long-term stability, health, and prosperity.

Our collaborative efforts are organized around three pillars, which each play a vital role in advancing community development and fostering a more just and equitable society for all.

Together, we strive to combat structural racism and economic disparity through convenings and strategic policy advocacy. The collaborative is led by three national entities representing community development organizations.