With this update, banks will be mandated to offer more mortgage loans in low-income communities, which should be areas where banks offer a significant amount of mortgage and small business loans, not just areas where banks have physical branches.

This will help reduce the impact of "redlining" policies, where mortgage institutions deny loans to minority applicants and communities. This has hindered many people of color from becoming homeowners or has led them to obtain more expensive or predatory loans.

The update to this law will also encourage banks to issue smaller-scale mortgage loans that are secure but yield lower profits compared to the large loans in upscale communities. This will help residents to afford homes and start businesses, thus increasing lending in medium and low-income communities. The update will also change how banks think about the location and manner of loans, encouraging them to better assist communities and people of color.

Some are concerned that banks might opt to close their stores in low-income areas instead of providing more loans in these communities. They believe that banks might choose to withdraw from low-income areas as the mortgage market in these areas is relatively small and poses higher risks.

If this were to happen, the update to the law might backfire, making it even more challenging for residents in low-income communities to obtain mortgage loans.

Only banks with assets exceeding $600 million will be affected, meaning that many institutions such as credit unions and non-bank lending entities will not be subject to this law. This might also lead banks to consider more the economic strength of a community rather than its racial and income characteristics when deciding whether to lend to a particular area.

While the update to this law is a positive step, close monitoring of its implementation is necessary. Banks should adhere to the law and ensure sufficient mortgage loans are provided in low-income communities.

Government agencies and non-profit organizations should also oversee the behavior of banks to ensure they do not choose to withdraw from low-income areas. Additionally, the government should consider expanding the scope of the law to include more mortgage lending institutions to eradicate housing racial discrimination.

Finally, we need to recognize that combating housing racial discrimination is a long-term task. Apart from amending the law, we need to take other measures, such as improving infrastructure in low-income communities, enhancing education levels, and increasing employment opportunities, to help residents in these communities break free from poverty and achieve a better life.