Warren's ambitious bill also seeks to address racial inequities by restructuring the
Community Reinvestment Act of 1977 and creating a down-payment assistance program for homebuyers.
The
Community Reinvestment Act of 1977 was enacted by Congress to encourage financial institutions to meet the credit needs of the communities in which they operate, especially low-to-moderate income neighborhoods.
The
Community Reinvestment Act of 1977 (CRA) instructs federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the communities in which they are chartered, while also conforming to "safe and sound" lending standards.
The
Community Reinvestment Act of 1977 encouraged commercial banks and savings associations to meet the needs of all segments of communities.
The
Community Reinvestment Act of 1977 grew out of neighborhood activists' efforts to fight the twin devils of redlining and destructive FHA lending and to obligate financial institutions to "meet the credit needs of the local communities in which they are chartered." But the Wall Street mortgage-securities market emerged outside of CRA's domain.
"Beginning with the
Community Reinvestment Act of 1977, the political system helped create this mess," Michael Novak, a one-time supporter of CRA and other community-based efforts to support neighborhoods, wrote in First Things earlier this year.
* Require financial institutions to give back to their communities by providing student loan offerings to low-income communities as part of their community reinvestment obligations as is the case for banks under the
Community Reinvestment Act of 1977.
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 of 1977 (the "CRA").
Each lucky winner has to submit a Community Support Statement to the board, detailing various aspects of the bank's performance as a community lender, including lending to first-time home buyers and, in some cases, performance under the
Community Reinvestment Act of 1977.
Congress asked the Board of Governors of the Federal Reserve System to conduct a comprehensive study of loans made under the
Community Reinvestment Act of 1977. The Board's study focused on the loans' delinquency and default rates--their performance--as well as their profitability.
They included: More active local government in housing assistance programs that still involved federal funding through various grant programs such as Community Development Block Grants; Better organized and more motivated community development organizations; More reliance on the ability to raise low-cost capital through state and local housing finance agencies, primarily through tax-exempt bonds; Development of mechanisms by banks and thrifts to meet the legislative requirements of the
Community Reinvestment Act of 1977 for greater investment in low-income communities; and Expanded use of local government regulatory powers directed to encourage inclusion of affordable and low-income housing in new developments.
Wynn is trying to persuade the Comptroller of the Currency, Eugene Ludwig, to include the bill as part of the
Community Reinvestment Act of 1977, which requires banks and thrifts to meet the credit needs of the communities they serve.
