COMMUNITY REINVESTMENT ACT (CRA)

Community Reinvestment Act (CRA), enacted in 1977, is a federal law designed to encourage depository institutions to help meet the credit needs of the communities in which they operate, particularly low- and moderate-income neighborhoods. The CRA aims to reduce discriminatory credit practices against such neighborhoods, a practice known as "redlining." The CRA continues to play a crucial role in ensuring that financial institutions contribute to the economic health and well-being of all communities, particularly those that have been historically underserved.