This big-hearted initiative was as much to blame for the condition of the financial and banking sectors as any anti-regulatory move under Presidents Reagan or George W. Bush. Just because it sounds nice doesn't mean it's not ideological (or wrong).
The Community Reinvestment Act of 1977 directed federal regulatory agencies to "encourage" banks and other lending institutions "to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions."
That sounds pretty innocent and, in fact, it had little effect for more than a decade. However, its premise was that bureaucrats and politicians know where loans should go, better than people who are in the business of making loans.