The question of the moment, then, is not whether the current crisis was caused by the CRA, but what can be done to make CRA a more effective regulatory incentive going forward as we face an unprecedented set of community needs in the wake of the current foreclosure crisis and the resulting economic slowdown.
Lower-income neighborhoods that were once stable thanks to the efforts of community development practitioners and their banking partners now suffer from the negative effects of high foreclosure rates, including increased numbers of vacant and abandoned property, a loss of equity in their own homes, and higher rates of crime and arson.