Who is subject to the Community Reinvestment Act?
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.
Is the Community Reinvestment Act still in effect?
Guidance issued to implement the 2020 rule remains in effect for activities conducted October 1, 2020, through December 31, 2021. Examinations in process and scheduled for 2022 will not be affected by the implementation of the CRA final rule announced in OCC Bulletin 2021-61.
Who does the community Reinvestment apply to?
The Community Reinvestment Act (CRA) helps ensure that federally insured banks meet the credit needs of the communities in which they are located, consistent with safe and sound banking practices. The CRA was one of several laws passed during the late 1960s and 1970s to expand access to credit.
What regulation is Community Reinvestment Act?
The Community Reinvestment Act (CRA), enacted by Congress in 1977 (12 U.S.C. 2901) 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.
How do I qualify for a CRA loan?
Generally, loans to small businesses with gross annual revenues $1 million or less that create or retain jobs for low- or moderate-income individuals or in low- or moderate-income geographies, or that otherwise meet the economic development “size” and “purpose” tests, qualify as community development loans.
Are banks required to keep a CRA public file?
Your bank must maintain a public file, updated as of April 1 each year, that includes the following information: For the current year and two previous years, all written comments from the public about how your bank is helping meet community credit needs.
What qualifies as a CRA investment?
affordable housing (including multifamily rental housing) for low- or moderate-income (LMI) individuals; community services targeted to LMI individuals; activities that promote economic development by financing businesses or farms that meet the size eligibility standards as outlined under the CRA; and.
What qualifies as a community development activity under the CRA?
Under the CRA, community development investments might include investments, membership shares, deposits, donations or grants, such as: Investments in projects eligible for low-income housing tax credits. Purchase of municipal bonds issued to fund construction of assisted-living apartments for LMI senior citizens.
Who is covered by CRA?
Institutions Covered by CRA CRA applies to FDIC-insured depository institutions, such as national banks, savings associations, and state-chartered commercial and savings banks.
What is CRA examination?
The Community Reinvestment Act (CRA) was enacted by Congress in 1977 to ensure depository institutions are meeting the credit needs of the local communities. Depository institutions undergo CRA exams about every 3 years, depending on past performance.
What is a CRA loan program?
CRA is an acronym for the Community Reinvestment Act, a U.S. law encouraging banks to help meet credit needs in communities where they take deposits, with specific emphasis on helping meet credit needs of low- and moderate-income neighborhoods.
What is examined in the CRA lending test?
(1) The lending test evaluates a bank’s record of helping to meet the credit needs of its assessment area(s) through its lending activities by considering a bank’s home mortgage, small business, small farm, and community development lending.
What does the CRA investment test look at?
Examples include Mortgage Backed Securities, New Market Tax Credits, tax credits, bonds, equity in projects and more. Even grants, historically a mainstay of CRA Investment Test Compliance, have become more complex tool.
What are qualifying activities?
These activities are known as ‘qualifying activities’. These qualifying activities are: transport outside the State of passengers and their accompanying baggage. supplies of goods which, by virtue of the distance sales rules, are deemed to have taken place in another Member State.
What does not qualify as a community development activity under the CRA?
Activities that revitalize or stabilize LMI areas Activities that provide only indirect or short-term benefits to LMI areas or individuals are not considered community development under the CRA.
How do I make changes to my Act registration?
You can make changes to your registration through your ACT web account. The kinds of changes that can be made include: Adding or removing the writing test. Changing your test date. Changing your test location. Updating your personal information. Adding or changing your college choices. Correcting high school code.
What is the Community Reinvestment Act of 1977?
Community Reinvestment Act (CRA) The Community Reinvestment Act of 1977 (CRA) encourages certain insured depository institutions to help meet the credit needs of the communities in which they are chartered, including low- and moderate-income (LMI) neighborhoods, consistent with the safe and sound operation of such institutions.
How do I get a refund for unused Act admission tickets?
To request a refund of these optional services, write “REFUND” on your unused admission ticket and mail it to ACT Registration, email [email protected] with “REFUND” in the subject line, or write a letter including your identifying information and the test date and test option for which you registered.
How do I change the date of my ACT test?
Log in to your ACT web account and select “Make Changes to Your Registration” or call ACT Registration at 319.337.1270 by the regular deadline for the new test date. You will be charged the full fee for the new test date in addition to the test date change fee.