Do CRA Ratings Accurately Reflect Bank Practices?
Domestic Policy Subcommittee Hearing TODAY Partial view of Capitol Washington, Oct 24, 2007 – This hearing will expose and explain how Community Reinvestment Act (CRA) exams may not reflect discriminatory practices by regulated banks, including the problems associated with regulatory discretion and new bank structures that were prohibited when Congress enacted the CRA. It will also analyze the detrimental affect of non-disclosure of fair lending exams on community participation and CRA enforcement. Wednesday, October 24, 20072 p.m.2154 RayburnWashington, DC 20515 Presently, 98% of banks receive a satisfactory or outstanding rating on their CRA exams. Yet evidence of discrimination in lending and other bank practices persists, including a number of Department of Justice prosecutions of banks receiving high CRA ratings. This hearing will explore that coincidence. This is the third in a series of hearings on subprime lending and the banking industry. Witnesses for the hearing include: Pan
