There’s a Better Way to CRA

iEmergent CEO Laird Nossuli's article, "A better way to CRA," was featured in National Mortgage News. Here's an excerpt: 

Using a few simple best practices, lenders can ace their CRA exams, beat out competitors, avoid costly penalties, and uncover unexpected business growth opportunities

CRA compliance benefits forward-thinking lenders

Community Reinvestment Act requirements can be difficult for lenders to navigate and may even be viewed as irrelevant by some independent mortgage bankers. Not necessarily, though.

Although the CRA is technically applicable only to FDIC-insured depository institutions, such as national banks, savings associations, and state-chartered commercial and savings banks, several states have enacted copycat legislation that applies the same general CRA principles and requirements to IMBs, and new bills are being introduced all the time that would expand the CRA’s reach. 

Passing the CRA exam means lenders must either prove they have taken action to serve all members of their community, including those in majority-minority census tracts (MMCT) and low- to middle-income (LMI) neighborhoods, or pay costly premiums to purchase CRA-eligible loans. For many lenders, this can be a headache, but there are ways to make the process easier and significant benefits to achieving favorable examination results. 

Read the full article on National Mortgage News.