The Atlanta Voice, September 25, 2019: What You Should Know About the Community Reinvestment Act
Since it was passed in 1977, the Community Reinvestment Act (CRA) has enabled thousands of low- and moderate-income families—many in minority communities—to become homeowners. In the current political climate, however, many observers, who have played a role in monitoring how effectively the CRA is enforced, wonder whether it will continue to offer broad access to affordable mortgage financing.
Under the CRA, the federal government monitors how well banks and other lending institutions do in meeting the credit needs of the entire community, with the goal of making certain that neighborhoods which can be categorized as low- and moderate-income are not overlooked. Under provisions of the CRA, a bank’s application for new branches, relocation of existing branches, mergers and acquisitions, and other corporate activities are closely evaluated.
