The Community Reinvestment Act (CRA, Pub.L. 95-128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. ยง 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.
The Act instructs the appropriate federal financial supervisory agencies to encourage regulated financial institutions to help meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation (Section 802.) 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 (Section 804.)
Read more about Community Reinvestment Act: Enforcement, History, Controversies and Criticisms
Famous quotes containing the words community and/or act:
“What I wanted was to create thoughtful citizens—people who believed they could live interesting lives and be productive and socially useful. So I tried to create a community of children and adults where the adults shared and respected the children’s lives.”
—Deborah Meier (b. 1931)
“The act of bellringing is symbolic of all proselytizing religions. It implies the pointless interference with the quiet of other people.”
—Ezra Pound (1885–1972)