The Community Reinvestment Act – CRA
Test Questions & Answers 2024/2025
Why Does The Community Reinvestment Act Exist - CRA? - ANSWERSThe Community Reinvestment Act
(CRA) was created in response to the practice of redlining.
What's The Community Reinvestment Act - CRA's Purpose? - ANSWERSThe 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. Lender compliance is reviewed through the lender's report that shows its community's
geographic boundaries, identifies the community reinvestment credit offered, and includes comments
from the public about how the lender is doing in meeting the community's needs. Periodically, the
lender is reviewed by a federal financial agency, such as the Comptroller of the Currency, the Federal
Reserve's Board of Governors, the FDIC, or the Office of Thrift Supervision. The lender must post a public
notice that it's subject to this review, and make the results available.
How Does It The Community Reinvestment Act Affect Real Estate Sales? - ANSWERSIf you've noticed the
rehabilitation of a community in your area, you may have this act to thank. It's helped to reverse the
trends of deteriorating neighborhoods in many instances.
When and How Will a Real Estate Professional Encounter or Be Obliged by the Community Reinvestment
Act's Requirements? - ANSWERS
Requirements affect lenders only. - ANSWERS
This act is not without controversy. It's been revised numerous times since its inception, and its
effectiveness has been called into question, and there has even been speculation that it may negatively
impact some communities. Some have argued that it forced banks to make riskier loans and thus helped
to create the situation that led to the housing crisis. Such claims have not been substantiated, however. -
ANSWERS
Test Questions & Answers 2024/2025
Why Does The Community Reinvestment Act Exist - CRA? - ANSWERSThe Community Reinvestment Act
(CRA) was created in response to the practice of redlining.
What's The Community Reinvestment Act - CRA's Purpose? - ANSWERSThe 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. Lender compliance is reviewed through the lender's report that shows its community's
geographic boundaries, identifies the community reinvestment credit offered, and includes comments
from the public about how the lender is doing in meeting the community's needs. Periodically, the
lender is reviewed by a federal financial agency, such as the Comptroller of the Currency, the Federal
Reserve's Board of Governors, the FDIC, or the Office of Thrift Supervision. The lender must post a public
notice that it's subject to this review, and make the results available.
How Does It The Community Reinvestment Act Affect Real Estate Sales? - ANSWERSIf you've noticed the
rehabilitation of a community in your area, you may have this act to thank. It's helped to reverse the
trends of deteriorating neighborhoods in many instances.
When and How Will a Real Estate Professional Encounter or Be Obliged by the Community Reinvestment
Act's Requirements? - ANSWERS
Requirements affect lenders only. - ANSWERS
This act is not without controversy. It's been revised numerous times since its inception, and its
effectiveness has been called into question, and there has even been speculation that it may negatively
impact some communities. Some have argued that it forced banks to make riskier loans and thus helped
to create the situation that led to the housing crisis. Such claims have not been substantiated, however. -
ANSWERS
