Consumer Compliance Outlook
CRA and HUD Neighborhood Stabilization Program
Outlook Live Webinar
Wednesday, April 6, 2011
||11:00 a.m. - 12:00 noon Pacific
|12:00 noon - 1:00 p.m. Mountain
|1:00 p.m. - 2:00 p.m. Central
|2:00 p.m. - 3:00 p.m. Eastern
In December 2009, the federal bank and thrift regulatory agencies announced changes to Community Reinvestment Act (CRA) regulations to support stabilization of communities affected by high foreclosure levels. These changes became effective January 19, 2011.
The final rule encourages depository institutions to support eligible development activities in areas designated under the Neighborhood Stabilization Program (NSP) administered by the U.S. Department of Housing and Urban Development (HUD).
Under the NSP, HUD has provided funds to state and local governments and nonprofit organizations for the purchase and redevelopment of abandoned and foreclosed properties. The new rule encourages depository institutions to make loans and investments, and provide services to support NSP activities in areas with HUD-approved plans.
The final rule reflects the broad support expressed by public comments for the agencies' proposal to expand existing CRA consideration for neighborhood stabilization activities. NSP-eligible activities will receive favorable consideration under the new rule if conducted within two years after the date when NSP program funds are required to be spent.
Allowing banking institutions to receive CRA consideration for NSP-eligible activities in additional NSP-targeted areas serves the purposes of the CRA and creates an opportunity to build upon government programs in areas with high rates of foreclosure and vacancy. CRA consideration is not limited to activities actually receiving NSP funds and may include other eligible activities in NSP plan areas.
Please join us as Theresa Stark, Senior Project Manager in the Division of Consumer and Community Affairs of the Federal Reserve Board; Mike Griffin, Senior Vice President of Key Bank; and Matt Perrenod, Chief Lending Officer of the Housing Partnership Network, Inc. discuss these new CRA opportunities.
This webinar is part of an ongoing series of events focused specifically on consumer compliance issues. The “Outlook Live” Audio Conference is a Federal Reserve System initiative produced in conjunction with the quarterly newsletter Consumer Compliance Outlook.