Supersedes Working Paper 17-15, “Don't Know What You Got Till It’s Gone” — The Community Reinvestment Act in a Changing Financial Landscape

The loss of CRA coverage leads to an over 10 percent decrease in purchase originations by CRA-regulated lenders. While nondepository institutions replace approximately half, but not all, of the decreased lending, their increased market share was accompanied by a greater involvement in riskier and more costly FHA lending. This study demonstrates how different lenders respond to the incentive of CRA credit.