The 1995 modifications to the Community Reinvestment Act
A) imposed numeric goals for loans extended to low-income and minority groups that were difficult for many banks to meet without reducing loan standards.
B) reduced the incentive of banks to extend loans to low-income and minority groups.
C) encouraged low-income and minority housing purchasers to make larger down payments so they would have more equity in their houses.
D) made it more difficult for low-income and minority groups to obtain conventional loans.

Question

Quizplus · Accepted Answer

The 1995 modifications to the Community Reinvestment Act did impose numeric goals for loans extended to low-income and minority groups, but these goals were difficult for many banks to meet without reducing loan standards. This led to concerns that the modifications would actually reduce access to credit for those groups.

The 1995 Modifications to the Community Reinvestment Act