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Community Reinvestment Act (CRA)

Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations.

Canada Revenue Agency

The tax collection agency for the Canadian government. It is responsible for collecting all federal taxes derived from sources other than tariffs and associated fees. It also collects income taxes on behalf of all provinces except Quebec and provincial corporate taxes except for Alberta and Quebec. The CRA is also responsible for collecting the goods and services tax, which is the Canadian VAT. See also: IRS, Notice of seizure.

Community Reinvestment Act

A 1977 U.S. law encouraging banks and other lending agencies to extend credit to low and moderate income persons wishing to buy a home. The original contained no penalties, but prohibited lending institutions from discriminating against a potential homeowner based on where he/she lives. Regulatory changes in 1995 and legislative amendment in 1999 are often blamed for encouraging banks to make excessively risky loans in exchange for the ability to offer investment and insurance services. Because of this, some believe the CRA is responsible for the housing bubble that contributed to the recession that began in 2008. See also: Credit Crunch, Gramm-Leach-Bliley Act

Credit Rating Agency

A company that provides investors with assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. A high rating indicates low risk and may therefore encourage investors to buy a security. Additionally, banks may only invest in securities with a high rating from two or more credit rating agencies. The SEC recognizes 10 firms as credit rating agencies; Fitch, S&P, and Moody's are the three most prominent. However, the methods of credit ratings agencies have been subject to criticism. For example, most agencies gave high-risk mortgage-backed securities top ratings until they defaulted at the collapse of the housing bubble.


See credit reporting agency and Community Reinvestment Act.

References in periodicals archive ?
He served as president of CRA from 2001 to 2004 before being promoted to finance director of Waste Management Recycle America.
As provided in the CRA, the Board has evaluated the convenience and needs factor in light of the evaluations by the appropriate federal supervisors of the CRA performance records of the relevant insured depository institutions.
The CRA commission had approved paying as much as $1.
Based on SEC staff's past experience in issuing no-action letters, the proposal notes that a CRA that has developed a general acceptance in the financial markets for a limited geographic area could meet the NRSRO definitions.
Now is a good time to be an active CRA lender, particularly with regard to residential real estate in New York City's outer boroughs.
We've recently had a lot of requests from subscribers to make our database available, so we launched CRA Rating Finder," Cecala explained.
However, a victim of disparate impact discrimination is taxed on back pay because it is the only remedy possible under the CRA for this type of discrimination.
CRA activists and groups like the National Community Reinvestment Network (also run by Stith) and ACORN read danger in the amendments and counterattacked.
The CRA commission last month unanimously approved paying Cohasset Manor Apartments, LP, either $1.
As provided in the CRA, the Board has evaluated the convenience and needs factor in light of examination by the appropriate federal supervisor of the CRA performance record of the relevant insured depository institution.
The Federal Deposit Insurance Corporation (FDIC) was by far the busiest of the regulators in the CRA area, accounting for 3,492 of the ratings issued last year.
Community Capital Management's previous name, CRAFund Advisors, was based on its $725-million flagship mutual fund, the CRA Qualified Investment Fund, which is comprised of bonds that meet federal banking agencies' guidelines as "qualified investments" under the Community Reinvestment Act (CRA).