The Consumer Financial Protection Bureau (CFPB) has released a comprehensive report shedding light on the expansion of provisions within the Community Reinvestment Act (CRA) by various states, particularly in relation to mortgage companies. This report brings attention to the efforts made by states in enhancing the scope of the CRA to ensure that mortgage companies are actively participating in community development and meeting the needs of low- and moderate-income borrowers.
Key Points:
– Expansion of CRA provisions: The CFPB report highlights how states have gone beyond the federal requirements under the CRA by broadening the initiatives targeted at mortgage companies. These expansions are aimed at addressing the specific needs of communities and borrowers with lower incomes.
– Focus on community development: The report emphasizes the importance of supporting community development through the CRA. States are enhancing provisions to ensure that mortgage companies are investing in affordable housing, revitalization projects, and other initiatives that contribute to the overall well-being of communities.
– Meeting the needs of underserved populations: By extending the CRA provisions, states are aiming to hold mortgage companies accountable for providing equal access to credit for underserved populations. The report emphasizes the need for lenders to prioritize the needs of low- and moderate-income borrowers, boosting financial inclusion and reducing disparities in accessing mortgage loans.
Overall, the CFPB report underscores the efforts made by states to expand the CRA provisions within the mortgage industry, aiming to foster community development and improve access to credit across various income levels.
You can read this full article at: https://www.housingwire.com/articles/cfpb-report-finds-state-community-reinvestment-laws-can-go-beyond-federal-version/(subscription required)
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