Circular
Agencies Issue Final Community Reinvestment Act Rule to Implement Provision of Higher Education Opportunity Act
September 29, 2010
Circular No. 12248

The federal banking and thrift regulatory agencies have announced a final Community Reinvestment Act (CRA) rule to implement a provision of the Higher Education Opportunity Act. The provision requires the agencies to consider low-cost higher education loans to low-income borrowers as a positive factor when assessing a financial institution's record of meeting community credit needs under the CRA.

The rule also incorporates a CRA statutory provision that allows the agencies to consider a financial institution's capital investment, loan participation, and other ventures with minority-owned financial institutions, women-owned institutions and low-income credit unions as factors in assessing the institution's CRA record. 

See press release for full details.

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