Community Reinvestment Act

Community Reinvestment Act
Other short titles	Indian and Alaska Native Community Development Act
Long title	An Act to amend certain Federal laws pertaining to community development, housing, and related programs.
Nicknames	Housing and Community Development Act of 1977
Enacted by	the 95th United States Congress
Effective	October 12, 1977
Citations
Public law	95-128
Statutes at Large	91 Stat. 1111
Codification
Titles amended	42 U.S.C.: Public Health and Social Welfare
U.S.C. sections amended	42 U.S.C. ch. 69 § 5301
Legislative history
	Introduced in the House as H.R. 6655 by Henry S. Reuss (D–WI) on April 26, 1977; Committee consideration by House Banking, Finance, and Urban Affairs, Senate Banking, Housing, and Urban Affairs; Passed the House on May 11, 1977 (369-20); Passed the Senate on June 7, 1977 (79-7, in lieu of S. 1523); Reported by the joint conference committee on September 26, 1977; agreed to by the Senate on October 1, 1977 (54-19) and by the House on October 4, 1977 (384-26); Signed into law by President Jimmy Carter on October 12, 1977;

The Community Reinvestment Act (CRA, P.L. 95-128, 91 Stat. 1147, title VIII of the Housing and Community Development Act of 1977, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.^[1]^[2]^[3] Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.^[4]^[5]

The Act instructs the appropriate federal financial supervisory agencies to encourage regulated financial institutions to help meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation (Section 802). To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions (Section 804).^[6]

^ Text of Housing and Community Development Act of 1977 — Title VIII (Community Reinvestment) Archived 2008-09-16 at the Wayback Machine
^ Avery, Robert B.; Bostic, Raphael W.; Canner, Glenn B. (2000-11-01). "The Performance and Profitability of CRA-Related Lending". Economic Commentary. Federal Reserve Bank of Cleveland. Archived from the original on 2008-10-07. Retrieved 2008-10-05.
^ "Community Reinvestment Act". Federal Reserve Board (FRB). Retrieved 2008-10-05.
^ Bernanke, Ben S. (March 30, 2007). "The Community Reinvestment Act: Its Evolution and New Challenges". Prepared Speech by the Chairman of the Federal Reserve System before the Community Affairs Research Conference. Federal Reserve System (FRB).
CRA is designed as a simple test for how financial institutions are meeting obligations to serve the convenience and needs of the local market where they are located. This principle is one that federal law governing deposit insurance, bank charters, and bank mergers had embodied long before the enactment of CRA.
^ "The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain" Archived 2009-04-30 at the Wayback Machine, February 13, 2008
This hearing before the full House Committee on Financial Services examined the impact of CRA on the provision of loans, investments and services to under-served communities. In addition to exploring CRA's success, the hearing hoped to examine challenges that prevent the law from being more effective for the future. | Printed Hearing: 110-90(PDF)
^ "The Community Reinvestment Act". Federal Reserve Bank of St. Louis. Archived from the original on 2010-06-15. Retrieved 2008-10-06.

[fdic.gov-1] Text of Housing and Community Development Act of 1977 — Title VIII (Community Reinvestment) Archived 2008-09-16 at the Wayback Machine

[ABC-2] Avery, Robert B.; Bostic, Raphael W.; Canner, Glenn B. (2000-11-01). "The Performance and Profitability of CRA-Related Lending". Economic Commentary. Federal Reserve Bank of Cleveland. Archived from the original on 2008-10-07. Retrieved 2008-10-05.

[Federal_Reserve-3] "Community Reinvestment Act". Federal Reserve Board (FRB). Retrieved 2008-10-05.

[Bernanke-4] Bernanke, Ben S. (March 30, 2007). "The Community Reinvestment Act: Its Evolution and New Challenges". Prepared Speech by the Chairman of the Federal Reserve System before the Community Affairs Research Conference. Federal Reserve System (FRB).
CRA is designed as a simple test for how financial institutions are meeting obligations to serve the convenience and needs of the local market where they are located. This principle is one that federal law governing deposit insurance, bank charters, and bank mergers had embodied long before the enactment of CRA.

[30years-5] "The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain" Archived 2009-04-30 at the Wayback Machine, February 13, 2008
This hearing before the full House Committee on Financial Services examined the impact of CRA on the provision of loans, investments and services to under-served communities. In addition to exploring CRA's success, the hearing hoped to examine challenges that prevent the law from being more effective for the future. | Printed Hearing: 110-90(PDF)

[St._Louis_Fed-6] "The Community Reinvestment Act". Federal Reserve Bank of St. Louis. Archived from the original on 2010-06-15. Retrieved 2008-10-06.

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