The Community Reinvestment Act of 1977 (offsite) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices.
Highlights
Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act While the Community Reinvestment Act (CRA) has been a part of the bank regulatory framework for over 30 years, many observers think the CRA has not kept up with changes in the financial services industry. This volume of research papers and essays, jointly published by the Federal Reserve Banks of Boston and San Francisco, documents how much the industry has changed since the CRA was passed in 1977 and offers proposals for CRA reform.
Did the CRA cause the subprime meltdown? (offsite)
Chairman Bernanke responds to Senator Robert Menendez’s request for the Federal Reserve’s views on whether CRA caused the subprime meltdown. Bernanke writes “We are aware of such claims but we have not seen any empirical evidence presented to support them.”
Issuance of Final Interagency Questions and Answers on Community Reinvestment(offsite)
The federal financial institution regulatory agencies announced on January 6, 2009 the publication of new and revised Interagency Questions and Answers Regarding Community Reinvestment that, among other things, encourage financial institutions to take steps to help prevent home mortgage foreclosures.
