Federal Reserve Bank of San Francisco Shuts Down Critics of the Community Reinvestment Act

Elizabeth Laderman and Carolina Redid. Federal Reserve Bank of San Francisco. 2009.

"CRA Lending During the Subprime Meltdown" compares the two sides of the debate over the Community Reinvestment Act’s supposed responsibility for the subprime lending crisis. After a bit of empirical analysis, they conclude that their research should “quell if not fully lay to rest the arguments that the CRA caused the current subprime lending boom”. Indeed, they instead find CRA regulated loans were substantially less likely to be foreclosed upon.