MORE ON THE CRA

A group of researchers at the NBR have released a paper that shows there were some bad effects of the Community Re-investment Act but nothing dramatic:

For example, loans made within CRA-target tracts in the quarter following the initiation of a CRA exam have a 0.8 percentage point higher 90-day delinquency rate within two years of loan origination, representing a 21 percent increase relative to the average delinquency rate.

This amounts to a delinquency rate increase from 4.0% to 4.8%.