In Latest Filing, Organizations Serving Rural Indiana, the Deep South, California, and D.C. Detail Grave Harms Caused By Rollback of Community Reinvestment Act Protections
National Community Reinvestment Coalition, California Reinvestment Coalition Continue Legal Fight as Rollback Takes Effect October 1
Oakland, CA — Late Monday, the National Community Reinvestment Coalition (NCRC) and the California Reinvestment Coalition (CRC), represented by Democracy Forward and Farella Braun + Martel, responded to the Office of the Comptroller of the Currency’s (OCC) attempt to dismiss their suit challenging its dismantling of anti-redlining rules put in place to enforce the Community Reinvestment Act (CRA).
In May, OCC finalized new rules that — contrary to the CRA’s text and purpose to combat financial discrimination and facilitate access to capital in underserved communities — would dramatically reduce investment in low- and moderate-income communities. OCC’s gutting of critical protections afforded by the CRA was rushed through without the support of OCC’s institutional partners, the Federal Reserve and the Federal Deposit Insurance Corporation, which had, until this year, worked with OCC to administer the law. The rule was rushed out in the midst of the pandemic despite overwhelming opposition by commenters from community groups, financial institutions, and local governments. In their lawsuit, NCRC and CRC argue that the OCC’s new rule violates the Administrative Procedure Act because it was promulgated without sufficient data or analysis and without adequate consideration of stakeholders’ concerns about the proposal, among other flaws.
In this latest filing, NCRC and CRC — nonprofits founded to ensure underserved communities have access to capital and financial services — responded to OCC’s contention that they lack standing to sue.
In written declarations in support of the litigation, NCRC and CRC member organizations serving low- and moderate-income communities and communities of color explained how OCC’s unlawful changes will decimate their ability to carry out their work to empower underserved communities.
