The Effectiveness of the Community Reinvestment Act
Summary
This report informs the congressional debate concerning the Community Reinvestment Act (CRA) effectiveness to incentivize bank lending and investment activity tolow- and moderate-income (LMI) borrowers. After a discussion of the CRA's origins, the examination process and bank activities that are eligible for consideration of CRA credits are presented. Next, the difficulty of determining the CRA's influence on bank behavior is discussed.
Note: CRS reports are prepared for Members of Congress and their staffs. This summary is provided for informational purposes and does not constitute legal advice.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.