Community Reinvestment Act

Gaps in minority homeownership are the result of ongoing housing discrimination and the failure of changes in public and subsidized federal housing programs to adequately consider the rights and interests of low income and minority communities.

The Community Reinvestment Act, enacted in 1977, offers an additional tool in the battle against redlining and similar practices, by encouraging banks and thrifts to invest in all segments of the community from which they collect deposits, including minority neighborhoods.

The CRA is one of the most effective programs helping those in minority communities develop a strong economic and financial foundation. It has resulted in more than $1 trillion of loans and credit committed to individuals and businesses and for housing development in low- and moderate-income neighborhoods. In addition, the CRA has had an enormous impact on communities of color; it has helped to increase economic opportunities and the accumulation of wealth for people previously excluded from America's bounty.