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An Analysis of the Policy of Community Reinvestment Act

An Analysis of the Policy of Community Reinvestment Act. An Impact of the Policy of Community Reinvestment Act on the Lower to Moderate Income Families in the Form of Income Inequality. Background of the Policy of CRA.

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An Analysis of the Policy of Community Reinvestment Act

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  1. An Analysis of the Policy of Community Reinvestment Act An Impact of the Policy of Community Reinvestment Act on the Lower to Moderate Income Families in the Form of Income Inequality

  2. Background of the Policy of CRA • The policy of Community Reinvestment Act introduced to circumvent redlining. • Redlining means to deny Bank Loans, Insurance Products or even Jobs in a particular demographic, Specifically because of Color. • The Policy of CRA regulate banks to meet the needs of the community particularly the customers with Low and moderate income. • This paper focus on the Pre and Post Distribution of the shared of the Aggregate income among L.M.U. families. • Determines if the Community Development Loans have widen the disparity or Lowered it among different SES.

  3. Scope of the Problem • The policy of community reinvestment act has a Federal Jurisdiction. • Amendment in the Federal Laws took place to implement housing related programs and community development loans. • The law enacted by the United States Senate and the House of Representatives. • Community Reinvestment Act (CRA) for national banks, under 12 CFR Part 25, and for federal savings associations, under 12 CFR Part 159. (FDIC, 2012). • The Policy of community Reinvestment act was passed to surmount the problem of discriminatory laws of Redlining.

  4. Descriptive Statistics for All Races

  5. Tests of Between-Subjects Effects (All Races)

  6. Descriptive Statistics for Hispanics

  7. Tests of Between Subject Effects (Hispanics)

  8. Descriptive Statistics for Blacks

  9. Tests of Between Subject Effects (Blacks)

  10. Descriptive Statistics for Whites

  11. Tests of Between Subject Effects (Whites)

  12. Results • The results indicate the higher inequality in the post era of policy. • the disparity among different ses increased regardless of color. • In the post era of policy upper income attained the higher share of total aggregate income. • In the post era of policy lower to moderate income families have lower share instead. • Since, cra policy might not direct cause of disparity. However, it implemented to improve disparity

  13. Questions Please • If you have any suggestions or questions. Please, e-mail me at ajkhokhar038@gmail.com. Your e-mail will be highly appreciated. Thanks, for your time and interest.

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