FinanceIntermediateDelaware Exam
Under the Community Reinvestment Act (CRA), banks are required to:
AMake loans only in their local community
BMeet the credit needs of the communities they serve, including low- and moderate-income areasCorrect
COffer below-market interest rates to first-time buyers
DPartner with HUD on all residential loans
Why Meet the credit needs of the communities they serve, including low- and moderate-income areas Is Correct
Answer B: Meet the credit needs of the communities they serve, including low- and moderate-income areas
The CRA requires federally insured banks and thrifts to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods, in a manner consistent with safe and sound banking.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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