What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that was enacted to encourage financial institutions to invest in the communities in which they operate. This law requires banks and other financial institutions to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods. This includes investing in housing, small business development, and providing financial services such as loans and technical assistance. In Texas, the CRA is administered by the Office of the Comptroller of the Currency (OCC), which is part of the United States Department of the Treasury. The OCC works with banks to make sure that they meet their obligations under the Community Reinvestment Act. Banks must develop and implement a Community Reinvestment Plan that describes the bank’s commitment to meeting the credit needs of all individuals in its community. They must also submit an annual compliance review that is reviewed by the OCC. The CRA is an important piece of banking law that helps ensure that banks are investing in low- and moderate-income neighborhoods, providing financial services, and supporting small business development. By doing this, the CRA encourages economic growth and development, and helps to create a more equitable and just society.

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What is the Community Reinvestment Act?

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