Advancing the Dream: 8 notable Civil Rights victories
8. Community Reinvestment Act of 1977
Even with major civil rights legislation in place on issues like voting, running for public office, marriage and education, there remained persistent areas of racial discrimination in the country.
During the 1930s, the Home Owners’ Loan Corporation, working on the part of the Federal Home Loan Bank Board, drew maps rating the level of lending risk for neighborhoods in and around major metropolitan areas.
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Neighborhoods considered the riskiest for loans, many of which were predominantly minority communities, were marked with red, hence the term “redlining.” Private lenders often used these maps to deprive low-income African Americans of loans.
In 1977, Congress passed the Community Reinvestment Act, which sought to finally end the practice of redlining — which had been banned by previous legislation — and end discrimination in credit and lending. President Jimmy Carter signed it into law.
“The CRA has promoted the development of low- and moderate-income communities since its passage in 1977,” noted Federal Reserve History. “At the same time, the lack of investment that many communities had experienced has continued to impact those communities and their residents, and disparities such as the racial wealth gap and neighborhood-level differences in homeownership have persisted.”
“These disparities indicate the continued importance of effectively promoting financial inclusion through tools such as the CRA.”
