What was the purpose of the Community Reinvestment Act of 1977 quizlet?

The Community Reinvestment Act (CRA), enacted by Congress in 1977 and implemented by Regulations 12 CFR parts 25, 228, 345, and 195, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate.

What did the Community Reinvestment Act of 1977 succeeded in?

The Community Reinvestment Act (CRA) of 1977 succeeded in reducing discrimination against borrowers, by encouraging banks and thrift institutions (credit unions and mutual savings banks, among others) to serve those communities or neighborhoods whose members had moderate or low income, since, traditionally, they had …

What impact did the Community Reinvestment Act of 1977 have on the economy?

The Community Reinvestment Act encourages bank lending to low- and moderate-income neighborhoods. Enacted in 1977, it sought to eliminate bank “redlining” of poor neighborhoods. That had contributed to the growth of ghettos in the 1970s. In redlining, neighborhoods were designated as not good for investment.

What was the purpose of the Community Reinvestment Act Title VII?

The Community Reinvestment Act of 1977 sought to address discrimination in loans made to individuals and businesses from low and moderate-income neighborhoods.

What is the main idea behind the Community Reinvestment Act quizlet?

The Community Reinvestment Act – CRA requires lenders to meet the needs of their communities by investing in development and rehabilitation efforts, especially those that enable low- and moderate-income individuals and families to afford a home.

What was the state of the economy when Carter became president quizlet?

Terms in this set (20) What was the state of the economy when Carter became president? Inflation and unemployment were high.

Was the CRA successful?

The CRA has been successful in many respects. The incentives provided by the CRA and requirements for compliance with other laws and regulations have prompted partnerships between banks and community groups to promote access to credit for low- and moderate-income communities and foster development in these areas.

Why did some Americans defend the Community Reinvestment Act of 1977 during the Great Recession?

Proponents believed banks were foregoing profitable lending opportunities in LMI neighborhoods, and that legislation was necessary to curb the “first mover” problem. Critics were concerned the law would create distortions in credit markets and result in credit allocation by the federal bank regulators.

What is the purpose of the mortgage lender Community Investment Act quizlet?

Which issues faced President Carter when he took office in 1977 the US economy was quizlet?

Jimmy Carter while in Presidency was faced with five challenges which include; Inflation, Slow growth, Unemployment, Stagflation, and The second oil shock.

Which issues faced President Carter when he took office in 1977?

Ref. Carter took office during a period of “stagflation”, as the economy experienced both high inflation and low economic growth. The U.S. had recovered from the 1973–75 recession, but the economy, and especially inflation, continued to be a top concern for many Americans in 1977 and 1978.

What is the Community Reinvestment Act of 1977(CRA)?

The Community Reinvestment Act of 1977(CRA) encourages certain insured depository institutions to help meet the credit needs of the communities in which they are chartered, including low- and moderate-income (LMI) neighborhoods, consistent with the safe and sound operation of such institutions. The CRA requires federal banking agencies to

Why did the Community Reinvestment Act not cause the 2008 financial crisis?

Why This 1977 Law Did Not Create the 2008 Financial Crisis. The Community Reinvestment Act encourages bank lending to low- and moderate-income neighborhoods. Enacted in 1977, it sought to eliminate bank “redlining” of poor neighborhoods. That had contributed to the growth of ghettos in the 1970s.

Who contributes to the Community Reinvestment Act?

Researchers, regulators, bankers, nonprofit practitioners, and community advocates contributing. Published: February 2009. “The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain”, February 13, 2008.

How did the Community Reinvestment Act affect racial segregation in America?

The net effect is that credit markets increased racial segregation”. Politico has reported that the Community Reinvestment Act may sometimes push poor people out of their own neighborhoods by facilitating investment by outsiders.

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