Why was the CRA enacted?
Why was the CRA enacted?
The Community Reinvestment Act (CRA) is a federal law enacted in 1977 to encourage depository institutions to meet the credit needs of low- and moderate-income neighborhoods. The CRA requires federal regulators to assess how well each bank fulfills its obligations to these communities.
What’s the purpose of the Community Reinvestment Act quizlet?
Is intended to ENCOURAGE depository institutions to help meet the credit needs of the communities in which they operate, including LOW- and MODERATE-INCOME NEIGHBORHOODS, consistent with safe and sound banking operations. You just studied 27 terms!
What is CRA reporting purposes?
Aggregate Reporting Institutions must also report loans to businesses and farms with gross annual revenues of $1 million or less, using the revenues that the institution considered in making its credit decisions.
When did CRA come into force?
1 October 2015
The Consumer Rights Act 2015 (CRA 2015) came into force on 1 October 2015. This briefing paper sets out in detail the background to the Act and the main provisions of Part 1 (sale of goods, digital content and services) and Part 2 (unfair contract terms).
What was the purpose of the Community Reinvestment Act of 1977?
The Community Reinvestment Act (CRA), enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.
What is the CRA Act of 1970?
The Community Reinvestment Act (CRA) is a law intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.
What was the purpose of the Community Reinvestment Act of 1977 *?
What was the Community Reinvestment Act of 1977 quizlet?
The Community Reinvestment Act (CRA), enacted by Congress in 1977 and implemented by Regulations 12 CFR parts 25, 228, 345, and 195, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.
Who enforces CRA?
federal banking agencies
4. The federal banking agencies enforce the CRA by examining the CRA record of a bank, issuing a written report with a rating, and taking the bank’s CRA record into account when considering the bank’s application to expand its business.
Was the CRA successful?
The overwhelming majority of studies find that the CRA has succeeded in increasing lending in low- and moderate-income neighborhoods. Inner cities have not yet been wholly transformed by the CRA, but they have been demonstrably improved by the act’s implementa- tion.
What does CRA stand for?
CRA
| Acronym | Definition |
|---|---|
| CRA | Credit Rating Agencies |
| CRA | Credit Reporting Agency |
| CRA | Civil Rights Act of 1964 |
| CRA | Chambre Régionale d’Agriculture (French: Regional Chamber of Agriculture) |
How old is the Community Reinvestment Act (CRA)?
In 2019, the Community Reinvestment Act (CRA) will be forty-two years old. [1] Congress enacted the CRA in 1977 as a community development initiative that sought to leverage the financial resources of private sector institutions. Senator William Proxmire of Wisconsin was the primary architect of the CRA.
DEFINITION of ‘Community Reinvestment Act – CRA’. The Community Reinvestment Act (CRA) is federal legislation enacted in 1977 with the intent of encouraging depository institutions to help meet the credit needs of surrounding communities (particularly low and moderate income neighborhoods).
What are the proposed revisions to the CRA regulations?
OTS Director at the time, John Reich announced the final decision to go ahead and implement the proposed revisions in four main areas of its existing Community Reinvestment Act (CRA) regulations to reestablish uniformity between its rules and those of the other federal banking agencies.
What is the CRA’s bank record assessment?
The CRA requires federal regulators to assess the record of each bank or thrift in helping to fulfill its obligations to the community. This record will then be used in evaluating applications for future approval of bank mergers, charters, acquisitions, branch openings and deposit facilities.
