In addition, the Treasury Department recently completed an extensive outreach effort related to modernizing the CRA regulations. CRA is a vital tool to address the credit needs of low- and moderate-income communities, and I believe the time is ripe for a refresh to make it even more relevant to today’s challenges. There are five principles that can help guide our efforts.
prime loans and much better than subprime mortgage loans through the financial crisis; see Lei Ding, Roberto G. Quercia, Janneke Ratcliffe, and Wei Lei, “Risky Borrowers or Risky Mortgages: Disaggregating Effects Using Propensity Score Models,” Journal of Real Estate Research 33 no. 2 (2011): 245–77.