Carter signs Community Reinvestment Act requiring banks to lend in low-income communities

President Carter signs the Community Reinvestment Act (CRA, P.L. 95-128) into law, requiring federally regulated banks to meet the credit needs of all communities in their service areas, including low- and moderate-income neighborhoods. The CRA closes the loophole the 1968 Fair Housing Act left open, it banned individual discrimination but did not require banks to affirmatively serve Black neighborhoods. Federal regulators use CRA examinations to assess banks' compliance when approving mergers. Carter calls it a direct response to community demands to end redlining.