Compliance Savvy, September 14, 2021, CRA Evolution and Recent Modernization Efforts – Part 1
Even though many people may not be familiar with the CRA or pay attention to it, it is an important law. It directly impacts the lives and livelihoods of people living in LMI communities by incentivizing banks to direct large amounts of bank capital for community development.
The National Community Reinvestment Coalition (NCRC) estimates that banks have made almost $2 trillion in small-business and home loans in LMI neighborhoods from 1996 to 2019 [2], and former Comptroller of the OCC, Joseph M. Otting indicated that “banks are currently making around $480 billion a year in home mortgage loans, small business loans and community development investments in LMI neighborhoods, making them eligible for credit on CRA’s examinations”[3].
