Community Reinvestment Act

CRA was enacted in 1977 to prevent redlining & encourage financial institutions help meet credit requirements of all segments in their communities, including low & moderate income neighborhoods.

As per the regulations of CRA, deposit taking financial institutions have to offer equal access to lending, services & investment to all those in their geographic assessment area (which is at least 3-5 miles from each branch of that institution).

Before this act was implemented, many bankers used to exclude low income neighborhoods and people of color from their investments, financial services & lending products.

Reference site: Community Reinvestment Act