Summary
Community Reinvestment Act still motivates mortgage bankers
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Extract
CRA in the 21st Century.
The goal of the Community Reinvestment Act in the next century must be to keep the doors open in underserved communities. Emerging technologies, like credit scoring and automated underwriting, should not be allowed to restrict broad access to housing credit. Subprime lenders, too, must responsibly provide mortgage credit to underserved markets.
Since its passage in 1977, the Community Reinvestment Act (CRA) has encouraged financial institutions to extend credit to low- and moderate-income communities they had previously overlooked. More than two decades later, CRA is still a motivating force in the credit markets, particularly the affordable housing market. And there are plenty of reasons to expect this to continue. First, homeownership ...See the full content of this document
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