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Fall 2002 Do CRA Agreements Influence Lending Patterns?

Raphael W. Bostic and Breck Robinson
An increasingly common method for lending institutions to demonstrate their commitment to and compliance with the Community Reinvestment Act of 1977 (CRA) and fair lending laws has been to enter into agreements with community groups and other entities to help ensure the flow of credit throughout their service area. Table 1 shows that the volume of loan pledges associated with these agreements, referred to as “CRA agreements” in this brief, has grown significantly since the passage of the CRA.