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Community Reinvestment

The Community Reinvestment Act (CRA), enacted by Congress in 1977 (12 U.S.C. 2901) and implemented by Regulation 12 CFR parts 25, 228, 345, and 563e, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate. The CRA’s “sister” legislation is the Home Mortgage Disclosure Act (HMDA), enacted in 1975 to provide the public with mortgage lending data to help determine if financial institutions are serving the housing needs of their communities. This section of the website provides information about the regulations implementing the CRA and HMDA, any changes to these laws or their regulations, as well as any work or research Empire Justice Center does pertaining to CRA and HMDA data, including commenting on bank CRA exams.

ARTICLES

Fed Study: Low Mortgage Rates No Boon to Refinancing in 2010
According to a new study by the Federal Reserve, despite historically low mortgage rates last year, refinancing activity struggled. Read More

Do Bank Branches Matter Anymore?
This research suggests that brick-and-mortar branches provide tangible benefits to consumers, especially in low- and moderate-income neighborhoods. When branches are located in these areas, borrowers living there default less and have greater access to credit. Read More

The Subprime Crisis: Is Government Housing Policy to Blame?
In this paper the authors examine whether housing policy, embodied by the Community Reinvestment Act (CRA) and the affordable housing goals of the government sponsored enterprises, were associated with worse outcomes in the mortgage market, including delinquency rates and measures of loan quality. Read More


Community Reinvestment: Articles


IN THE NEWS

Small Banks Shift Charters to Avoid U.S. as Regulator
A small community bank in New Hampshire found a demand from its regulator last month just too much. Read More

Justice Department Alleges GFI Mortgage Bankers Engaged in Illegal Lending Discrimination
The Department of Justice and the U.S. Attorney’s Office for the Southern District of New York filed a lawsuit alleging that GFI Mortgage Bankers Inc., a mortgage banker with operations in seven states, violated federal fair lending laws by charging African-American and Hispanic borrowers higher interest rates and fees on home mortgage loans because of their race or national origin, not based on their creditworthiness. Read More


Community Reinvestment: In the News


POLICY ADVOCACY

New York Organizations Oppose Capital One's Acquisition of HSBC's Credit Card Business
Six New York legal services and consumer advocacy organizations, including Empire Justice Center, tell the OCC to deny Capital One's application to acquire HSBC's credit card and private label credit business. Read More

GRCRC Comments on First Niagara's Application to Purchase HSBC's Upstate New York Branches
HSBC is moving out of retail banking in upstate New York and First Niagara is seeking approval from federal regulators to purchase most of its branches. GRCRC met with First Niagara and submitted comments urging First Niagara to be a good steward in the Rochester community. Read More


Community Reinvestment: Policy Advocacy


PUBLICATIONS

The River Runs Dry
This report documents a dramatic decrease in prime mortgage lending made between 2006 and 2008 in Rochester, NY, and highlights that low-income communities and neighborhoods of color were hardest hit by the drop-off in lending. Read More

 

Paying More for the American Dream IV
A report documenting a dramatic decrease in low-cost home loans and highlighting that communities of color were hardest hit by the drop-off in lending. Read More

 

Community Reinvestment: Publications


NEWSLETTERS

Legal Services Journal - Spring 2011
The spring 2011 issue area of the LSJ has a special focus on Consumer and Community Development issues. You will also find an article on "Policy News", "Settlement in Class Action Application Delays Case in Nassau" and "21st Century SSA.. Read More

Legal Services Journal - Fall 2010 Issue
The Fall 2010 issue of the Legal Services Journal continues an over thirty year practice of reporting on a wide range of poverty law topics. Additionally, this issue has a special focus on Domestic Violence and Immigration Law. Thanks to all our authors and special recognition to members of Empire Justice Center Practice Groups who specialize in Domestic Violence and Immigration for their articles. Read More



TRAINING AND EVENTS

Celebrating 30 Years of the Community Reinvestment Act
On January 24, 2008, the Greater Rochester Community Reinvestment Coalition and Empire Justice Center presented a forum celebrating 30 years of the Community Reinvestment Act. This forum is presented online in four parts. Read More



RESOURCES

Overview of Home Mortgage Disclosure Act (HMDA) and Regulations
The key piece of legislation for giving communities and policy makers information about how well banks and other mortgage lenders are serving communities under the Community Reinvestment Act. Read More

GRCRC and Other CRA Advocates
Lists of national, state and local community reinvestment advocates, as well as a description of GRCRC. Read More