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 ?
Solera National Bank, a community commercial bank and wholly-owned subsidiary of Solera National Bancorp Inc (OTCBB: SLRK), has said that it has named Lynn Archuleta, vice president of business banking, as its new community reinvestment act officer.
In acting on this proposal, the Board also must consider the convenience and needs of the communities to be served and take into account the records of performance of the relevant insured depository institutions under the Community Reinvestment Act (12 U.S.C.
Previously, he was a senior executive in the federal government who designed and led compliance, fair lending, and Community Reinvestment Act examination programs for the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the former Office of Thrift Supervision.
Robinson has also served as a congressional adviser on banking issues, including the Community Reinvestment Act, Equal Credit Opportunity Act, Home Mortgage Disclosure Act, and Fair Housing Act, for a subcommittee of the U.S.
Daryl has a tremendous passion for helping people understand how compliance with the Community Reinvestment Act impacts both our bank and the communities we serve, said Byna Elliott, senior vice president & acting director of Community & Economic Development, Fifth Third Bank.
The Community Reinvestment Act is a 1977 law intended to encourage insured banks and thrifts to help meet the credit needs of the communities in which they are chartered to do business, including low- and moderate-income neighborhoods, consistent with safe and sound operations.
As regulators and legislators are debating the future of the Community Reinvestment Act (CRA), the ANHD said the report aims to help communities, banks, legislators, bank regulators and allies understand the impact of the Community Reinvestment Act (CRA) at a local level.
Powell was fairly upbeat on the economic outlook in a 60 minutes interview on Sunday, despite global headwinds, noting that the Fed is not in any hurry to alter rates for now from "roughly neutral." Tuesday Fed Governor Brainard will get in the last word on the "Community Reinvestment Act Modernization" at the same conference from 8:45 ET before the Fed hunkers down for the blackout period ahead of the March FOMC a week hence.
He oversees FNB's Community Reinvestment Act (CRA) programs, including affirmative credit and fair lending activities, as well as philanthropic and outreach initiatives.
OKLAHOMA CITY First Liberty Bank has become MetaFunds 25th banking partner with a $500,000 contribution toward Community Reinvestment Act projects.
Knoxville, TN, August 26, 2015 --(PR.com)-- RMS Inc, a leading provider of compliance software and solutions for the financial industry announced today the release of the 2014 Community Reinvestment Act (CRA) Peer Databases and Rankings in RiskExec[R], its flagship suite of regulatory compliance products.
Walton is vice president & director of community and economic development for the Greater Cincinnati Affiliate of Fifth Third Bank, responsible among other things for Community Reinvestment Act compliance in an area that includes Dayton, Ohio and Northern Kentucky.

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