Legal Seminar, Chicago, IL

CRA Basics

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 The Community Reinvestment Act (CRA) was enacted by Congress in 1977 to encourage depository institutions to help meet the credit needs of the communities in which they operate and to help stabilize deteriorating neighborhoods  Focus is on serving the credit needs of low- and moderate-income borrowers and geographies as well as small businesses and farms  The regulations require that information on business, farm, and community development lending by certain insured depository institutions is made available to the public  The Consumer Compliance Task Force of the FFIEC periodically publishes Interagency Q&A (2010, 2013 and 2016 versions)

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Assessment Area

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 Banks must delineate one or more assessment areas within which its federal regulator evaluates the bank's record of helping to meet the credit needs of its community  The appropriate federal banking regulator does not evaluate the bank's delineation of its assessment area, but reviews the delineation for compliance  The process for delineating the Bank’s assessment area will involve at least one director – it is the Board’s responsibility to ensure that the assessment area is appropriately delineated

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