# Community Reinvestment Act, CRA

- Canonical URL: https://www.gerhardmerk.de/community-reinvestment-act-cra
- Post ID: 589662
- Modified: 2023-07-25T21:00:53+00:00
- Language: en

## Definition

This law from 1977 obliges banks in the USA to offer local banking services to a satisfactory extent. Another provision stipulates that institutions must lend a portion of their loans to socially weaker persons and minorities, even if they are unable to provide the necessary collateral customary in banking, i.e. are not creditworthy. The aim of the latter provision was to make affordable housing available to lower income earners. - This legislative encroachment on banks' freedom of contract is indisputably considered a major trigger of the subprime crisis. - See payoff assistance, loan liability, limited, Home Mortgage Disclosure Act, good-guided, jingle mail, lending rule, credit card fiasco, lemon problem, air securities, ninja loans, papers, toxic, PayGreen Initiative, subprime lending, subprime housing finance, lemon trade, twenty-two-eight credit. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1