Proposed changes to Community Reinvestment Act regulations should be put on hold to avoid harming the low- and moderate-income communities they are intended to help, the Presidents' Council on Impact Investing said Thursday.
The philanthropic leadership group affiliated with the U.S. Impact Investing Alliance, with a combined $80 billion in assets, said in a comment letter the changes would significantly reduce lending and investments into low-income communities.
The proposed regulations were released Dec. 12 by two of the three agencies overseeing CRA regulation: the Office of the Comptroller of the Currency and Federal Deposit Investment Corp. The third agency, the Federal Reserve, did not participate in the proposal, which seeks to modernize the 25-year-old rules to increase lending activity in low- and moderate-income communities. The comment period ends April 8.