What is CRA data collection?

What is CRA data collection?

The purpose of CRA data collection and reporting is to enable examiners and the public to evaluate whether a bank is helping to meet the credit needs of its communities through its small business, small farm loans, consumer and home mortgage lending as applicable.

What is CRA in banking?

The Community Reinvestment Act (CRA), enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.

What does CRA stand for in mortgage?

The Community Reinvestment Act was implemented to encourage banks to provide loans, investment and services in support of affordable housing. The CRA laws are intended to equalize the playing field for borrowers, giving them the opportunity to qualify for home ownership in designated census tracts.

WHO reports CRA data?

Who Is Required to Report CRA Data? All institutions regulated by the Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation, and the Office of Thrift Supervision that meet the asset size threshold are subject to data collection and reporting requirements.

What is CRA reportable?

The CRA regulations generally require independent financial institutions with assets of $250 million or more to report annually data on small business, small farm, and community development lending.

What are CRA funds?

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 PITI means?

principal, interest, taxes and insurance
PITI is an acronym that stands for principal, interest, taxes and insurance. Many mortgage lenders estimate PITI for you before they decide whether you qualify for a mortgage. Lending institutions don’t want to extend you a loan that’s too high to pay back.

What is a low income borrower?

BORROWER ELIGIBILITY Have an income at or below 80% of the area median income. • Have no missed payments in the past six months, and no more than one missed payment in the past 12 months. • Not have a mortgage with a loan-to-value ratio greater than 97%, a debt-to-income ratio above 65%, or a FICO score lower than 620.

Do SBA 7a loans qualify for CRA credit?

What Are the Benefits to Banks? consideration: Loans with SBA guarantees have the potential to receive CRA consideration. To be eligible for consideration, SBA guaranteed loans would need to meet the definition of a “small business loan” or “community development loan” in the CRA regulation.

Are lines of credit CRA reportable?

Like loan renewals, renewals of lines of credit are not considered loan originations and should not be collected or reported.