From an economic perspective, the CRA can be interpreted as an attempt to rectify market failures--for example, by inducing banks to invest in building the knowledge and expertise necessary to lend profitably in lower-income neighborhoods. Similarly, to the extent that the CRA encouraged coordinated or simultaneous efforts by banks to lend in underserved areas, it had the potential to reduce the first-mover problem.
The debate surrounding the passage of the CRA was contentious, with critics charging that the law would distort credit markets, create unnecessary regulatory burden, and lead to unsound lending. Partly in response to these concerns, the Congress included little prescriptive detail in the law.