CRA & The Federal Reserve

The Federal Reserve Board has announced the new members of the Consumer Advisory Council. The Council advises the FRB on issues of interest and concern to consumers. In recent years, CRA has been a regular topic on the Council's agenda, including examinations, enforcement, and the new regulation. Because of the mixed representation on the Council, discussions are always interesting - and sometimes heated.Council members serve for a term of three years. Each year the FRB appoints nine to twelve new members to the Council. Members are identified from the credit industry, consumer advocacy and consumer service organizations, and areas of expertise in research and law. The Council thus represents all points of view and brings an array of skills to the table. Because of the variety of skills and perspectives, the Council can be relied upon to generate an active dialogue.

The newly appointed group for this year is somewhat unusual. Almost everyone joining the Council in 1996 has something in common: they are actively involved in the making of "CRA" loans. The new members represent community development corporations, development credit unions, Neighborhood Housing Services, and legal services. The common denominator to the group is the skill of making community development a reality.

This emphasis on the Consumer Advisory Council sends a message that the FRB expects to seek advice from the Council on the realities of making loans to low and moderate income borrowers - dealing with economic revitalization in areas that have credit needs. In short, the emphasis will be on getting results under CRA, supporting the new CRA regulation's emphasis on results over procedure.

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 5, 3/96