[T]he CRA only covers banks, not nonbank financial firms. That leads to an uneven playing field, said Jeffrey Naimon, a BuckleySandler LLP partner.
"Banks are asking why should a national nonbank mortgage lender have no CRA but a bank have a CRA requirement?" he said.
The National Community Reinvestment Coalition said it is pushing for that to be included in any update to the CRA.
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"[Treasury Secretary Steven Mnuchin's] bank, OneWest, also had one of the worst community reinvestment records of all the banks that CRC analyzes in California, which raises questions about his motivation in 'reforming' the Community Reinvestment Act. Is he interested in reforming it to help communities, or to help the industry do even less?" said Paulina Gonzalez of the California Reinvestment Coalition.