Legal Seminar, Chicago, IL

C OMMUNITY R EINVESTMENT A CT • Congress enacted CRA in response to redlining and capital export (LMI deposits for MUI lending) • National Community Reinvestment Coalition (NCRC.org) report “HOLC Redlining Maps: The Persistent Structure of Segregation and Economic Inequality” • In the 1930s, HOLC deemed over 64% of LMI areas and over 81% of minority areas in Chicago “hazardous” and marked these areas red on maps used by lenders and FHA • As of 2010, 74% of LMI areas deemed “hazardous” remained LMI; 64% of areas deemed “hazardous” remained majority-minority; “best”= 94% MUI A CCESS TO C REDIT AND W EALTH G AP • Access to safe and affordable financial products is critical to building wealth • Most Americans’ biggest asset is home equity • Other ways to build assets: own a small business; acquire higher education; and save for retirement • Lack of access to safe and affordable financial products/credit exacerbates the racial wealth gap • Median white family in U.S. has about $171,000 in net wealth, while median African American family has about $17,000 ($1: 10 cents)