Quote – Michelle Minton, Competitive Enterprise Institute

The Community Reinvestment Act does not appear to have had any positive effect on lending to residents of LMI neighborhoods. In fact, it appears to have had a negative effect on CRA lenders and LMI residents alike… While both CRA- and non-CRA lenders have increased the number of loans to low-income borrowers, the financial soundness of CRA-covered institutions decreases the better they conform to the CRA.

Michelle Minton, “The Community Reinvestment Act’s Harmful Legacy: How It Hampers Access to Credit”, Competitive Enterprise Institute paper no.132.

Thursday, March 20, 2008