7.5 Community Reinvestment

Redlining

A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries.

Community Reinvestment Act (CRA)

It helps commercial banks and savings associations meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.

Community Reinvestment Act of 1977

The Act also says that lenders need to submit an annual statement including public comments about their attempts to help low-income communities.

Community Reinvestment Act of 1977

The ________ extended and clarified the long-standing expectation that banks will serve the convenience and needs of their local communities.

Home Mortgage Disclosure Act

This requires banks to record/report data on home lending in order to ID possible discriminatory patterns.

the Community Reinvestment Act

What federal act was passed to help eliminate redlining?

Community Reinvestment Act of 1977

the Act requires lenders to assist their local communities by participating in community development projects.