What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that encourages banks to help meet the needs of the communities in which they are located, primarily lower-income neighborhoods. This law was enacted by Congress in 1977 and is enforced by the Federal Reserve Board. The CRA requires that banks assess the credit needs of their entire community, including non-traditional customers who may not be able to meet conventional lending requirements. The CRA also encourages banks to provide financial services to lower-income and depressed neighborhoods, such as setting up branches, providing low-cost mortgage services, and making loans to small businesses. In Nebraska, banks must adhere to the CRA and are evaluated by the Office of the Comptroller of the Currency (OCC). The OCC examines the community development activities of banks to ensure that they are meeting the credit needs of their communities. Banks must also make a good faith effort to serve the credit needs of their entire community by offering convenient services and products that are tailored to their customers. Banks must report on their CRA activities to the OCC examiners and can be held accountable for failing to meet their commitments. The Community Reinvestment Act is an important law that promotes banking reform and encourages banks to invest in their local communities. It helps ensure that banks are providing services and products that benefit all residents, including those in lower-income neighborhoods, and helps banks become true partners in their communities.

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What is the Community Reinvestment Act?

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