Tract Maps and HMDA/CRA Compliance and Assessment
The Home Mortgage Disclosure Act or "HMDA" (see http://www.ffiec.gov/hmda/ ) was enacted by Congress in 1975 to assist:
- in determining whether financial institutions are serving the housing needs of their communities;
- public officials in distributing public-sector investments so as to attract private investment to areas where it is needed;
- and in identifying possible discriminatory lending patterns.
Using the loan data submitted by these financial institutions, the Federal Financial Institutions Examination Council (FFIEC) creates aggregate tables for each metropolitan statistical area (MSA) or metropolitan division (MD) (where appropriate), and individual institution disclosure reports. The aggregate tables and individual disclosure reports for calendar years 1999 - 2005 are available on this web site (www.ffiec.gov/hmda) or also on the FFIEC web site (www.ffiec.gov/reports.htm). Furthermore, the FFIEC provides to the public a few other data products, including TS and LAR raw data software and Census data on this web site. See the data request order form regarding the products, their format, and availability.
A great article on "Data and HMDA Compliance - A Dangerous Intersection?" from SAS.
An older article from BankersOnline still contains lots of good information: http://www.bankersonline.com/articles/v02n01/v02n01a3.html
The Community Reinvestment Act or "CRA" (see http://www.ffiec.gov/cra/ ) encourages depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. It was enacted by the Congress in 1977 ( See Regulation).
The CRA requires that each insured depository institution's record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution's application for deposit facilities, including mergers and acquisitions. ( See CRA Ratings)