Community Reinvestment Act


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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.

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

Community Reinvestment Act (CRA)

An act passed by Congress in 1977 to encourage financial institutions to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. Compliance is monitored via regular audits,and a poor record of CRA compliance is taken into consideration when the financial institution applies for deposit facilities,including mergers and acquisitions.

One may find a financial institution's rating for CRA compliance by visiting the Web sites of the various regulatory agencies that track compliance.A financial institution may appear on one list but not others, depending on which agency has responsibility for that bank and its CRA compliance. The possibilities are

Federal Reserve Board (www.federalreserve.gov)
FDIC (www.fdic.gov)
Office of Comptroller of the Currency (www.occ.treas.gov)
Office of Thrift Supervision (www.ots.treas.gov)

 

References in periodicals archive ?
His responsibilities include legal, compliance, regulatory, and legislative activities, the Community Reinvestment Act, and community affairs.
The approach taken by the interagency task force shows a willingness on the part of the administration to respond effectively but flexibly to the requirements of the Community Reinvestment Act," said Mullin.
We feel that no other bank in our market matches the services Bank of Fresno offers under the spirit and objectives of the Community Reinvestment Act.
Consistent with its community commitment and its responsibilities under the Community Reinvestment Act (CRA), Mellon Bank offers special consumer loans and products, mortgages and free banking related seminars for low- and moderate-income borrowers.
The Community Reinvestment Act (CRA) of 1977 requires banks to meet the credit needs of all the communities where they do business, especially low-to-moderate income neighborhoods and families.
The Community Reinvestment Act of 1977 was enacted to encourage financial institutions to help meet the credit needs of the communities in which they operate.
SAN DIEGO -- QuestSoft, a provider of Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) compliance solutions and geocoding services for lenders, announced at the Mortgage Bankers Association's National Technology in Mortgage Banking Conference & Expo a series of integration alliances with a number of leading loan origination software (LOS) providers.
She is Chairperson of the bank's senior management committee responsible for overseeing Community Reinvestment Act (CRA) activities.
April 8 /PRNewswire/ -- Carolina First Corporation (NASDAQ-NMS: CAFC) announced that Carolina First Bank has received an "outstanding" rating for its Community Reinvestment Act (CRA) participation.
QuestSoft, a provider of Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) compliance solutions and geocoding services, announced the integration of HMDA RELIEF, the company's flagship Windows(R)-based HMDA compliance software, with INTERLINQ(R) E3(R), a loan production platform from Harland Financial Solutions, Inc.
The Board has long held that consideration of the convenience and needs factor includes a review of the records of performance of the relevant depository institutions under the Community Reinvestment Act (12 U.
Johnson joined Bank One, Columbus in 1985 as consumer affairs coordinator and in 1986 was appointed the community reinvestment act officer for Bank One, Columbus.

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