State Community Reinvestment Act Requirements for Independent Mortgage Banks

MBA Opposes State Efforts to Impose Community Reinvestment Act Standards on Independent Mortgage Banks.

Overview: Regulators and legislators are considering options to extend the reach of the Community Reinvestment Act (CRA) to independent mortgage banks (IMBs). These policy options represent a solution in search of a problem and do not recognize the incompatibility of the CRA with the business models of IMBs and their historical lending activities.

Independent Mortgage Banks:

  • do not have deposits to reinvest;
  • do not have access to direct government support;
  • already engage in sustainable lending in low- to moderate-income (LMI) communities; and,
  • are subject to robust oversight and supervision in every state they operate as well as from federal regulators.

The application of the Community Reinvestment Act to independent mortgage banks would be an ineffective and misguided policy choice.

Read More About Federal CRA Law

Recent MBA Activity Related to State CRA Proposals for IMBs

Selected State HMDA Data Sheets of IMB Lending to LMI Borrowers

Data Sheet Available for Download

Click State to Download Datasheet

Related State CRA News

Ways to Get Involved and Make a Difference