New York Imposes Community Reinvestment Act Requirements on Mortgage Bankers
Financial Services attorney Bob Jaworski published an article in The Banking Law Journal discussing a New York law that extends the requirements of the state's version of the federal Community Reinvestment Act (CRA) to New York-licensed mortgage bankers. Enacted in 1977, the CRA requires federal bank regulators like the Federal Reserve Board to encourage institutions they supervise to meet the needs of communities where they do business, especially in low- and moderate-income areas. Several states, including New York, have passed analogs of the CRA, and previously, New York's version only applied to state-chartered or licensed depository institutions. In this article, Mr. Jaworski explains the reasoning for extending those requirements to mortgage bankers and highlights key features of the new law. He also covers the potential effects of the law and what steps mortgage bankers can take now to prepare to comply with it.