What is a CRA Protest? Exploring Its Legal Definition and Impact

Definition & Meaning

A CRA protest refers to any negative feedback from the public regarding a pending application that raises concerns related to the Community Reinvestment Act (CRA). This feedback can be labeled as a protest or not, and it may occur regardless of whether a public hearing is requested. The CRA aims to ensure that financial institutions meet the needs of the communities they serve, particularly low- and moderate-income neighborhoods.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A community group submits a letter expressing concerns about a bank's proposed branch in a low-income area, arguing that it does not meet the needs of the community. This letter serves as a CRA protest.

Example 2: A resident files a complaint with the FDIC about a bank's lending practices, stating that they disproportionately deny loans to minority applicants. This complaint qualifies as a CRA protest. (hypothetical example)

Comparison with related terms

Term Definition Difference
CRA Comment General feedback submitted regarding a financial institution's CRA performance. A CRA protest specifically raises negative issues, while comments can be neutral or positive.
Public Hearing An official meeting where stakeholders can express their views on a pending application. A protest can occur without a hearing, whereas a public hearing is a formal process.

What to do if this term applies to you

If you have concerns about a pending application related to a financial institution, consider submitting a CRA protest. Gather your thoughts and supporting evidence, and use templates available through US Legal Forms to draft your submission. If the situation is complex or you need assistance, consulting with a legal professional may be beneficial.

Quick facts

  • Jurisdiction: Federal and state banking regulators.
  • Typical fees: None for submitting a CRA protest.
  • Possible outcomes: Regulatory review of the financial institution's application.

Key takeaways

Frequently asked questions

The purpose is to raise concerns about a financial institution's compliance with the Community Reinvestment Act.