Finance
The Community Reinvestment Act (CRA) is relevant in West Virginia because it:
ASets the maximum mortgage rate charged to West Virginia borrowers
BRequires federally insured lenders to meet credit needs in all communities they serve, including low- and moderate-income neighborhoods✓ Correct
CMandates that all WV lenders participate in USDA loan programs
DProhibits lenders from making loans in flood zones
Explanation
The CRA requires federally insured banks and thrifts to demonstrate that they serve the credit needs of their entire service area, including low- and moderate-income communities, helping combat redlining.
Related West Virginia Finance Questions
- A West Virginia seller agrees to carry back a second mortgage to help the buyer close the transaction. The seller is acting as:
- A West Virginia lender who engages in 'redlining' is:
- A West Virginia buyer is comparing a 15-year mortgage vs. a 30-year mortgage at the same interest rate. The 15-year mortgage will have:
- A West Virginia borrower who wants to pay fewer points in exchange for a higher interest rate is using:
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- In West Virginia, a 'home equity line of credit' (HELOC) differs from a home equity loan in that a HELOC:
- A West Virginia lender charges 2 discount points on a $150,000 mortgage. The dollar amount of the points is:
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