The Federal Reserve's research, surveys, and outreach point to an economy that is very strong on an aggregate level but significantly more varied at the community level, with many neighborhoods still struggling. Second, the CRA regulations should be tailored to banks of different sizes and business models. Currently, the evaluation methods are tailored to banks of different sizes and business models.
We should consider whether assessment areas also should be tailored to the business models employed by banks. Third, any redesign of CRA regulations should be done with the goal of encouraging banks to seek out opportunities in underserved areas.