Bank Rule Change Could Help Struggling Neighborhoods

A new rule proposed by federal regulators would allow bank investments made for neighborhood stabilization efforts and donations of foreclosed properties to be count towards compliance with the Community Reinvestment Act.

1 minute read

June 20, 2010, 7:00 AM PDT

By Nate Berg

The rule change is intended to give banks an incentive to increase investment in troubled areas.

"The agencies said under their proposed definition of 'community development,' a financial institution would receive favorable consideration for donating foreclosed properties to non-profit housing agencies in targeted, hard-hit areas.

'In addition, institutions would receive favorable CRA consideration if they provide financing for the purchase and rehabilitation of foreclosed, abandoned, or vacant properties,' the regulators said."

Thanks to The Overhead Wire

FULL STORY: New bank rule aims to stabilize neighborhoods

Thursday, June 17, 2010 in Reuters

Community / Economic Development Government / Politics Housing United States Investment Neighborhoods Banks Foreclosed Homes View More

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