Finance
Under the Community Reinvestment Act (CRA), lenders are required to:
AMake loans only to prime borrowers
BMeet the credit needs of all segments of their community, including low- and moderate-income areas✓ Correct
CReport all mortgage applications to HUD
DOffer zero-interest loans to minority borrowers
Explanation
The Community Reinvestment Act (CRA) requires federally insured depository institutions to help meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods. CRA performance is assessed by federal bank regulators and affects approval of bank mergers and expansions.
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