What does CRA stand for in mortgage?

The Community Reinvestment Act was implemented to encourage banks to provide loans, investment and services in support of affordable housing. The CRA laws are intended to equalize the playing field for borrowers, giving them the opportunity to qualify for home ownership in designated census tracts.

What does CRA stand for in mortgage?

The Community Reinvestment Act was implemented to encourage banks to provide loans, investment and services in support of affordable housing. The CRA laws are intended to equalize the playing field for borrowers, giving them the opportunity to qualify for home ownership in designated census tracts.

What is CRA in banking?

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.

What is CRA reportable?

The CRA regulations generally require independent financial institutions with assets of $250 million or more to report annually data on small business, small farm, and community development lending.

What is a CRA Lar?

The Home Mortgage Disclosure Act (HMDA) requires that covered financial institutions submit their Loan/Application Record (HMDA LAR) to the regulatory agencies for monitoring and risk management annually. The Community Reinvestment Act (CRA) has a similar submission requirement.

What is CRA eligible?

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.

How does CRA work?

The Community Reinvestment Act (CRA) is a law intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.

How do I know if I am eligible for a CRA loan?

So: A loan that is less than $1,000,000 going to a business whose revenue is less than $1,000,000 is considered a small business loan by examiners. BUT A loan that is less than $1,000,000 going to a business who has revenues greater than $1,000,000 is ALSO considered a small business loan.

Who does the CRA apply to?

Does the CRA apply to all depository institutions? The CRA applies to depository institutions that carry FDIC deposit insurance. Serve as correspondent banks, trust companies, or clearing agents 12 USC 24 (Seventh).

What is CRA data?

CRA data are generally released by August of the year following the calendar year of the data. National Aggregates, 1996-2020. These reports are a nationwide summation of the CRA data. They indicate the number and dollar amounts of lending, cross-tabulated by loan, applicant, and geographic characteristics.

What are the 3 tests under CRA?

Under the regulations that implement CRA, federal regulators grade large banks (those with at least $250 million in assets) on three measures of compliance: lending, investment, and service (see “The Grading System,” p. 3).

Who qualifies for CRA?

You earned at least $5,000 in 2019, 2020, 2021, or in the 12 months before the date you apply from any of the following sources: employment income (total or gross pay) net self-employment income (after deducting expenses) maternity and parental benefits from EI or similar QPIP benefits.

What type of loans qualify for CRA credit?