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Warren W. Traiger quoted in The Real Deal article, “Tug-of-war over anti-redlining law heads back to the drawing board”

The Real Deal

Warren W. Traiger

Warren W. Traiger was quoted on October 11, 2021 in The Real Deal article, “Tug-of-war over anti-redlining law heads back to the drawing board,” which examined the uncertainty over the Office of the Comptroller of the Currency’s proposed changes to the Community Reinvestment Act in 2020 and how federal regulators are struggling with ways to modernize the law to address the increase in the number of nontraditional lenders.

Traiger noted that the proliferation of internet-based banks has been a driving force behind calls to modernize the law. “You have very significant banks now that have few or no traditional brick-and-mortar branches.”

The article also focused on the OCC’s proposed rule that would have required lenders to invest in communities where they source 5% or more of their retail domestic deposits. The rule did not gain support from stakeholders, with some arguing that the threshold would achieve meager increases to investment in neglected areas.

Traiger added, “The advocacy groups did not like it, and neither did the industry. The challenge would be to design a rule that brings CRA activities to deserts and does not make the problems of hot spots worse.”

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