Focusing initially on rural banking deserts, discriminatory and predatory agricultural credit, and manufactured housing, the Consumer Financial Protection Bureau has launched a an new initiative to address rural financial issues.
Acknowledging that there is no single rural experience in America, Director Chopra invited organizations representing rural people to share their concerns in February. One big lesson: larger economic trends are having an impact on the resilience of rural families.
The release noted: “We…heard that race is a major factor in banking access in rural areas; the rural counties most deeply affected by bank closures are those with a greater proportion of African American residents relative to other rural counties. Community institutions serving rural communities of color in the Deep South and Rio Grande Valley emphasized the essential role of Community Development Financial Institutions (CDFIs) in serving people that other banks won’t. They also highlighted the need for Community Reinvestment Act requirements to support serving rural banking deserts, particularly in persistent poverty counties, which are overwhelmingly rural.”
The Biden administration’s increased focus on rural issues is well-received in communities ready for solutions to issues unique to the diversity of rural American life.
