Federal Reserve: Formation of Community Advisory Council Announced
The Federal Reserve Board on Friday announced the formation of a new advisory council that will be comprised of individuals with consumer- and community development-related expertise. The Community Advisory Council (CAC) will provide information, advice, and recommendations to the Board on a wide range of relevant policy matters and emerging issues of interest. The CAC…
CFPB: Safe Student Account Scorecard Released
Bureau Seeks Comment on Scorecard to Help Schools Avoid Promoting Products with Tricks and Traps WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) is seeking input on a “Safe Student Account Scorecard” that would help colleges to avoid partnering with financial institutions that offer checking and prepaid accounts with tricks and traps. The scorecard…
ABA: Can Your Bank Help Teach Children to Save?
ABA calls for banker volunteers to increase financial capability in local schools WASHINGTON — The American Bankers Association, through its Community Engagement Foundation, is calling for banker volunteers to register for its national Teach Children to Save campaign. Now in its 19th year, the Teach Children to Save program is a national campaign that organizes banker volunteers…
CFPB: Report Finds Nearly Half of Borrowers Do Not Shop for a Mortgage
CFPB Releases “Owning a Home” Toolkit to Help Consumers Shopping for a Mortgage WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) released a report finding that almost half of consumers do not shop around for a mortgage when purchasing a home. The report also found that informed consumers are more likely to shop, especially…
Why is CRA important to banks?
The CRA promotes activities in which banks have a vested interest. By providing access to credit and other financial products and services for ALL parts of their communities (including low- and moderate-income areas as well as middle- and upper-income areas), banks can drive economic growth that fuels their institutions. These initiatives help banks create a…
Where can I learn more about the CRA regulation?
The Community Reinvestment Act is implemented and managed based on your Federal banking regulator. You can find it at the following locations: The Federal Act The OCC Regulation The FDIC Regulation The Federal Reserve Regulation In addition the the Act and implementing Regulations, the federal regulators have published Interagency Q&As that provide official guidance on how to…
Who holds banks accountable?
The Federal agency that provides a bank’s charter to operate will also monitor and regulate the bank’s overall performance. This Federal agency could be the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) or the Federal Reserve. Depending on a how a bank is structured, they may have one…
What is considered low- or moderate-income or LMI?
Assisting low- or moderate-income geographies and individuals is a primary focus of CRA. The collective income group is often abbreviated “LMI” when describing both the individuals and areas together. LMI Individuals An individual’s income is considered to be LMI based on how it measures up to the area median family income. Overall, to be classified…