The Community Reinvestment Act

The Community Reinvestment Act - of another branch or...

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The Community  Reinvestment Act
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What led to the CRA? What is the CRA? Did the CRA contribute to the  mortgage crisis? Should it be repealed?
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What led to the Community  Reinvestment Act? Residential Security  Maps Redlining
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What is the Community  Reinvestment Act?  Encourages financial institutions to meet credit  needs of all community members, including  those from low-income areas     Regulated by supervisory institutions (Federal  Reserve, FDIC, OCC, OTS)     Noncompliance leads to rejection of an opening 
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Unformatted text preview: of another branch or M&A Was the CRA Successful? Yes, at compelling banks to lend to low income groups. But it came with some unintended consequences. Did the CRA contribute to the mortgage crisis? Mortgage Crisis Risky loans Sold and Securitized High default rates Did the CRA Contribute? Y E S Should the CRA be repealed? Moral Hazard Contribution to the crisis Yes Questions...
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This note was uploaded on 12/29/2011 for the course BUS 453 taught by Professor Jerrynelson during the Fall '11 term at BYU.

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The Community Reinvestment Act - of another branch or...

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