Community Reinvestment Act

(redirected from Community reinvestment)

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 ?
The Federal Deposit Insurance Corporation (FDIC) issued the lists of institutions scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2019 and first quarter of 2020.
They were joined by BB&T Director of Corporate Social Responsibility and Community Reinvestment Sharon Jeffries-Jones and SunTrust Enterprise Community Reinvestment Officer Lynette Bell.
Fed Chairman Powell will make another appearance today in videotaped welcome remarks for the National Community Reinvestment Coalition's "Just Economy" conference after the close from 19 ET.
Title/Company: President and CFO, Community Reinvestment Fund, USA
CLEVELAND: KeyBank has earned its ninth consecutive "Outstanding" rating from the Office of the Comptroller of the Currency (OCC), for exceeding the terms of the Community Reinvestment Act (CRA) exam.
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.
Grooms will manage all areas of regulatory compliance for NCB, including bank secrecy reporting compliance reporting, and community reinvestment. In addition, he will manage all regulatory risk assessments and annual regulatory compliance reports and coordinate NCB's regulatory compliance training for all employees.
Funds raised thorugh the disposal of the devices collected will be donated to Martin Pena Recicla, a nonprofit organization that has a management and solid waste disposal program in communities surrounding the Martin Pena Channel in San Juan, Carmen Pagan, FirstBank's senior VP of compliance and community reinvestment.
This Week: Virgil Miller, Community Reinvestment Act director for Arvest Bank
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.
"What is proposed here by the regulatory agencies will most definitely throw a wet rag on housing recovery in this country," John Taylor, chief executive of the National Community Reinvestment Coalition, said at a news conference.

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