In one sentence
Consideration a bank earns under the Community Reinvestment Act for qualifying lending and investment in its communities.
The longer version
The CRA encourages banks to meet credit needs across their communities, and qualifying commercial real estate lending can earn favorable consideration in examinations. It shapes where and how some banks deploy capital.
CRA documentation and geographic tracking add reporting dimensions to affected loans, part of the broader compliance record banks maintain.
Common questions
- What is CRA credit?
- Consideration a bank receives under the Community Reinvestment Act for lending, investment and services that meet the needs of its communities, including low and moderate income areas.
- Which commercial real estate loans earn CRA credit?
- Community development loans such as affordable housing, loans supporting small businesses, and financing that revitalizes qualifying areas, subject to the bank's assessment areas.
- Why do banks care about CRA credit?
- Because CRA performance is evaluated by regulators and considered in applications such as mergers and branch expansions.
Keep reading
- Commercial real estate lending operations at a bankExaminer-ready as the operating standard.
- The post-closing audit trailWhat examiners ask for and how to have it ready.
- The due diligence checklist, built to be runChecklists as systems, not documents.
- UnderwritingWhere this sits in the credit decision.