Read the December Fair Lending Guide in Mortgage Compliance Magazine. It contains insights from Michael Taliefero, Managing Director of ComplianceTech.
The Community Reinvestment Act (CRA), enacted by Congress in 1977, is designed to encourage depository institutions to help meet the credit needs of the low/moderate income (LMI) borrowers or LMI communities from which they receive their deposits. The targeted community of first priority is the bank’s delineated assessment area (AA). Mortgage lending is included in a CRA evaluation, but other types of
lending and development activities are included as well. Institutions must satisfy a lending test, a service test, and an investment test. Continue reading…