In a new paper, Mark Willis with the Furman Center, suggests including an ‘Internet Rating’ in a modernized Community Reinvestment Act (CRA) framework since the current assessment areas used to delineate the primary geographies within a bank’s CRA test do not adequately account for the rise of internet banking. Under his proposal, banks would be separately evaluated for CRA performance within its assessment area(s), as well as beyond its assessment area(s), with the latter evaluation consisting of both a retail products test and a community development test. The results of these tests would then be blended together to arrive at the overall rating for the bank.
Last week HUD submitted its report on Community Development Block Grant (CDBG) Partnership Challenges and Opportunities at the Local, State, and Federal Level to the House and Senate Appropriations committees. The report identifies the following challenges and opportunities to building partnerships with local organizations.Read More