What are bank CRA requirements?

Here are five basic CRA requirements:

Maintain a Public File. Institutions are required to maintain and update a public file that contains specific information about itsCRA performance.
Post Public Notice (Lobby Poster)
Data Collection and Data Reporting.
Respond to Consumer Complaints.
Determine Assessment Area.

What are the 3 tests under CRA?

Under the regulations that implement CRA, federal regulators grade large banks (those with at least $250 million in assets) on three measures of compliance: lending, investment, and service (see “The Grading System,” p. 3).

What is the maximum fee a bank can charge for access to the CRA Public File?

You can ask to inspect this file, at no charge to you, any time the bank is open. If you do your banking at a branch office, you can ask to see its CRA file, which contains a copy of the public section of the bank’s most recent CRA performance evaluation and a list of services provided by your branch.

What banks are subject to CRA?

The CRA applies to FDIC-insured depository institutions, including national banks, state-chartered banks, and savings associations. However, credit unions backed by the National Credit Union Share Insurance Fund and other non-bank entities are exempt from the legislation.

Are all CDFIs nonprofits?

CDFIs are more diverse that you think The default image of a CDFI is a nonprofit, unregulated loan fund. In fact, half of the 1,100 certified CDFIs are not nonprofit, unregulated loan funds. Almost 30% are credit unions and about 20% are for-profit banks, bank holding companies, or venture capital funds.

What is a CDFI bank?

Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. CDFIs are profitable but not profit-maximizing.

Are banks required to keep a CRA public file?

Your bank must maintain a public file, updated as of April 1 each year, that includes the following information: For the current year and two previous years, all written comments from the public about how your bank is helping meet community credit needs.

What information is found in the Community Reinvestment Act CRA public file that must be made available to the public upon request?

The contents of the public file for covered financial institutions include both point-in-time (CRA evaluations) and ongoing information to help the public understand the bank’s capacity and ability to serve assessment area communities through its lending and, as applicable, community development activities.

What is a CDFI lender?

What is a CDFI grant?

The CDFI Program uses monetary awards and training opportunities to invest in and build the capacity of CDFIs, empowering them to grow, achieve organizational sustainability, and drive community revitalization. In FY 2019, CDFI Program awardees: Financed more than 19,000 businesses.

What is a community lender?

Known as community development financial institutions, they’re designed to loan to small businesses that have been turned down by traditional banks. …

What is the Community Reinvestment Act (CRA)?

The Community Reinvestment Act (CRA) is a law intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound banking operations.

What are the CRA’s requirements for bank records evaluation?

The CRA requires that each insured depository institution’s record in helping meet the credit needs of its entire community be evaluated periodically by one of the federal bank regulatory agencies (agencies).

What is the OCC’s New CRA rule?

The OCC’s CRA rule, published on June 5, 2020, recognizes significant changes to the banking industry and how consumers bank since the last comprehensive revision over 25 years ago. The June 2020 rule clarifies the activities that count for CRA credit, updates where bank activity counts, and evaluates CRA performance more objectively.

Can nonbank parent and sister companies receive CRA credit?

Interpretive Letter #1177, “Community Reinvestment Act Qualifying Activities Conducted by a National Bank’s or Savings Association’s Subsidiaries and Affiliates, Including Nonbank Parent and Sister Companies of a National Bank or Savings Association Under Certain Circumstances, Can Receive CRA Credit Under the June 2020 CRA Final Rule”