What is the Community Reinvestment Modernization Act?
The Community Reinvestment Modernization Act (CRMA) is a banking act that was passed in Oregon in 2019 and aims to protect low-income and communities of color from predatory lending practices. The Act requires banks to provide fair and open access to all creditworthy individuals, provides incentives for institutions to lend to and invest in lower-income and minority communities, and reduces or eliminates certain fees associated with banking services. It also stipulates that institutions must adopt practices to identify and eliminate predatory and discriminatory lending practices and provides for reporting requirements to monitor these practices. The CRMA is intended to promote safety and soundness in banking practices, encourage economic development within communities, and build opportunities for financial services that are beneficial to low-income and minority communities in Oregon. The Act also sets out specific requirements for lenders, such as the commitment to open access to lending for all creditworthy individuals regardless of race, color, or national origin. In addition, the Act encourages banks to increase services to smaller and rural communities in Oregon, as well as increase services to communities of color who may lack access to traditional banking services. The CRMA is an important component of Oregon’s banking law and is designed to ensure fairness and promote economic opportunity for all. By creating and enforcing fair lending practices, the Act works to reduce predatory lending practices and ensure that all people have access to safe and affordable banking services.
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