Banking Agencies Issue Final Community Reinvestment Act Rules - July 19, 2005
The federal banking agencies today approved final Community Reinvestment Act (CRA) rules that are intended to reduce regulatory burden on community banks while making CRA evaluations more effective in encouraging banks to meet community development needs. The final rules are essentially as the agencies proposed them in March. For details check out the following link... http://www.rataassociates.com/regulatorynews.asp?dt=7/1/2005#19
I have heard minor rumblings concerning CRA being extended to Mortgage Companies and feel this is complete chatter. Has anyone heard anything more concrete on this issue?
The Community Reinvestment Modernization Act of 2001 (H.R. 865[107]) was introduced on March 6, 2001 with the expressed intent "To enhance the availability of capital and credit for all citizens and communities, to ensure that community reinvestment keeps pace as banks, securities firms, and other financial service providers become affiliates as a result of the enactment of the Gramm-Leach-Bliley Act, and for other purposes." by Representative Thomas Barrett, Wisconsin. This bill was referred to the Subcommittee on Financial Institutions and Consumer Credit, and in addition to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises on March 26, 2001. This bill would effectively extend CRA to all lending affiliates of financial holding companies. Mortgage companies, insurance agents and other non-traditional lending affiliates of holding companies would be required to comply with CRA. In addition, the bill would extend CRA-like requirements to insurance companies and securities firms. No further action has been forthcoming on this bill however, since having been referred to committee.