What is the primary purpose of the CRA?

The Community Reinvestment Act (CRA) primarily aims to ensure access to credit in underserved communities. It was enacted to address the historical neglect of certain areas, particularly those predominantly inhabited by low- and moderate-income individuals. The act encourages financial institutions to meet the credit needs of these communities, which can often be overlooked in traditional lending practices. By promoting lending and investment in these areas, the CRA seeks to foster economic growth and sustainability.

While protecting consumers against discrimination is an essential aspect of overall financial regulatory practices, and although credit terms disclosures and settlement regulations are also important components of consumer protection within the financial sector, the essential focus of the CRA is on improving access to credit and banking services within communities that have been historically marginalized or neglected.