Community Reinvestment Act
Originally enacted in 1977, the Community Reinvestment Act (CRA) fostered access to financial services for low- and moderate-income communities across the country and ensured that banks meet the credit needs of their entire communities. Together with other antidiscrimination, consumer protection, and disclosure laws, the CRA remains today a key element of the regulatory framework.
The Federal Reserve Banks of Boston and San Francisco recently announced the publication of a collection of research papers and essays on the Community Reinvestment Act (CRA). This publication, Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act, provides perspective on how the Community Reinvestment Act (CRA) has evolved over the years and engages authors to consider what role it should play in the future. With the current financial crisis providing strong impetus for regulatory reform, a re-examination of the CRA seems both appropriate and likely.
Revisiting the CRA includes contributions from academic researchers, representatives of financial institutions and trade groups, current and former regulators, community development professionals, and consumer advocates who share a common desire to improve the regulatory system to ensure access to financial services for all in a safe and sound way. A follow up event entitled, Revisiting CRA: A Policy Discussion was held in Washington, DC on Feburary 24, 2008 to encourage and help frame an informed debate about the future of the CRA.
- Chakrabarti, Prabal, David Erickson, Ren S. Essene, Ian Galloway and John Olson, eds. Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act, 2009.
- Mullins, Luke. "Sheila Bair: Stop Blaming the Community Reinvestment Act." U.S. News and World Report, December 17, 2008.
- Traiger & Hinckley, LLP. The Community Reinvestment Act: A Welcome Anomaly in the Foreclosure Crisis. Indications that the CRA Deterred Irresponsible Lending in the 15 Most Populous U.S. Metropolitan Areas. January 7, 2008.
- Marsico, Richard D., "The 2004-2005 Amendments to the Community Reinvestment Act Regulations: For Communities, One Step Forward the Three Steps Back,” Clearinghouse Review 39 (2006): 534.
- Barr, Michael S., "Credit Where it Counts: The Community Reinvestment Act and Its Critics," New York University Law Review 80 (2005): 513.
- Apgar, William C. and Mark Duda, "The Twenty-Fifth Anniversary of the Community Reinvestment Act: Past Accomplishments and Future Regulatory Challenges,” FRBNY Economic Policy Review (June, 2003): 169.
- Engel, Kathleen C., and Patricia A. McCoy, “The CRA Implications of Predatory Lending,” Fordham Urban Law Journal, XXIX, (April, 2002).
- Avery, Robert B., Raphael W. Bostic, Glenn B. Canner, "The Performance and Profitability of CRA-Related Lending, " Economic Commentary, Federal Reserve Bank of Cleveland, (November, 2000).
- Litan, Robert E., Nicolas P. Retsinas, Eric S. Belsky, Susan White Haag, "The Community Reinvestment Act after Financial Modernization: A Baseline Report" The United States Department of the Treasury, (April, 2000).
- Rodburg, Susan E. and Richard C. Walker, III, Closing the Gap: A Guide to Equal Opportunity Lending, A Report by the Federal Reserve Bank of Boston.
Home Mortgage Disclosure Act (HMDA) Data Articles
- Robert B. Avery, Kenneth P. Brevoort, and Glenn B. Canner, The 2007 HMDA data, December 2008
- Robert B. Avery, Kenneth P. Brevoort, and Glenn B. Canner, The 2006 HMDA data, December 2007
- Robert B. Avery, Kenneth P. Brevoort, and Glenn B. Canner, The 2005 HMDA data, September 2006
Regulation BB implements the Community Reinvestment Act of 1977 (CRA), which requires that the federal regulators of banks and thrifts encourage those institutions to help meet the credit needs of the local communities in which they are chartered. The CRA directs the regulatory agencies to assess each institution's record in meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The CRA also directs the agencies to take these records into account in evaluating the institutions' applications for deposit facilities, such as a merger with another bank.
Regulation BB implements these requirements and addresses a variety of related matters, including the collection, maintenance, and reporting of data about an institution's performance in meeting the credit needs of its community and the institution's public disclosure of materials evaluating or commenting on its performance. The other three federal bank and thrift regulatory agencies have promulgated regulations substantially identical to Regulation BB.
CRA Regulations and Resources
- Governor Elizabeth A. Duke
CRA: A Framework for the Future
At the Revisting the CRA Policy Discussion, Washington, D.C. (February 24, 2009)
- Janet L. Yellen, President and CEO, Federal Reserve Bank of San Francisco
Opening Remarks
To the 2008 National Interagency Community Reinvestment Conference, San Francisco (March 31, 2008)
- Sandra F. Braunstein, Director, Division of Consumer and Community Affairs
The Community Reinvestment Act
Testimony before the Committee on Financial Services, U.W. House of Representatives, Washington, D.C. (February 13, 2008)
- Sandra F. Braunstein, Director, Division of Consumer and Community Affairs
The Community Reinvestment Act and fair lending examination processes
Testimony before the Subcommittee on Domestic Policy, Committee on Oversight and Government Reform, U.S. House of Representatives, Washington, D.C. (October 24, 2007)
- Chairman Ben S. Bernanke
The Community Reinvestment Act: Its Evolution and New Challenges
At the Community Affairs Research Conference, Washington, D.C. (March 30, 2007)
- Financial Services Committee Holds Hearing on the Community Reinvestment Act
The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain
United States House Committee on Financial Services, Washington, D.C. (February 13, 2008)
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