The Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.[1][2][3] The Act was intended to reduce discriminatory credit practices against such neighborhoods, a practice known as 'redlining'.[4]
The Act requires the appropriate federal financial supervisory agencies
to encourage regulated financial institutions to meet the credit needs
of the local communities in which they are chartered, consistent with
safe and sound operation. (See full text of Act and current regulations.[5])
To enforce the statute, federal regulatory agencies examine banking
institutions for CRA compliance, and take this information into
consideration when approving applications for new bank branches or for mergers or acquisitions.[6]
Subject: Economic Crisis Genesis 
Sat Oct 25, 2008 1:07 am
