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How Lending to the Poor Is Changing in the Trump Administration

Change is an inevitable part of life. That’s a saying that we’ve all come across many times in our lives, and it can be applied to events both monumental and insignificant. It goes without saying that we, as Americans, see change with every election cycle. Sometimes, the changes our elected officials enforce don’t seem to have a drastic impact on our daily life. In other circumstances, new or revised policies can mean big consequences on how we personally thrive and operate.

Although Donald Trump has been our President for over a year, in early 2018, his administration announced plans to unveil drastic revisions to the decades-old banking rules that require lending to low-income borrowers.

The Community Reinvestment Act, first enacted in 1977, is a United States federal law designed to encourage savings associations and commercial banks to help meet the needs of borrowers of all segments of their communities. This includes everyone, especially low and moderate-income housing neighborhoods.

While this seems to mean only good things for countless families, many banks have been fighting the requirements under this federal law for years, and now, it seems we have a President who is listening to these concerns.  According to CNN, The United States Treasury says the Community Reinvestment Act is in need of modernization, due to outdated lending rules. While some violently agree that this legislation is in need of an update, others fear that the Trump administration will weaken the lending requirements and make it harder for low-income families to get mortgages and small business loans, making it more difficult to work their way out of poverty.

Yes, we understand that change is inevitable, especially when it comes to every new Presidential administration. Some of these adjustments to existing policies mean minor consequences, while others radically impact the status quo. Whether or not these changes better the lives of those it affects is up to each individual. It doesn’t matter what your opinions are—it is essential for every American citizen to be properly informed on the political happenings in this great country of ours. It is equally important to consider how policy revisions influence you and the lives of those around you.

For more information on the adjustments to these existing banking rules, please reach out to the experts at Richmond Neighborhood Housing Services. Call us at 510-234-6459 or reach us by email at We are always here to support you.

Richmond Neighborhood Housing Services, Inc. (510) 237-6459
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