What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that encourages banks in California to help meet the credit needs of all people, including low and moderate-income neighborhoods. CRA requires federally regulated financial institutions in California to assess the credit needs of their local communities and to provide financial services to meet those needs. This includes providing affordable mortgage loans, affordable small business loans, and providing services for individuals who may not have access to traditional banking services. The CRA also promotes investment and economic development in low and moderate-income neighborhoods in California. Banks must submit a written Community Reinvestment Plan (CRA Plan) which outlines their commitments to serve the needs of their local communities. Banks are evaluated based on their compliance with the CRA Plan, and this evaluation is a part of their examination process. The CRA is an important law that helps to ensure that the banking activities of financial institutions in California benefit the local community. It also helps to create economic opportunity and promote financial stability in low and moderate-income neighborhoods. By providing access to banking services and financial resources, the CRA can help to create an environment of economic empowerment and opportunity for all individuals and families in California.

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What is the Community Reinvestment Act?

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