Fair Lending Supervision and the Community Reinvestment Act

The Federal Reserve, through its role as a supervisor of financial institutions, evaluates banks under the Community Reinvestment Act (CRA). Violations of both the Fair Housing Act and the Equal Credit Opportunity Act, the fair lending laws, as well as other illegal credit practices, are taken into account during these evaluations. When evaluating proposals for mergers and acquisitions, the Board considers a bank's consumer compliance record, including fair lending, and its evaluation under the Community Reinvestment Act. A robust supervisory approach is critical to addressing racial discrimination, which can close off opportunities and limit consumers' ability to improve their economic circumstances, including through access to homeownership and education.

Back to Top
Last Update: July 13, 2021