CRA opportunities important in the current finance environment.As all bankers know, the Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. (CRA See Community Reinvestment Act. ) requires banks to earmark earmark taking a piece out of the edge or center of the ear with a punch as an identification mark. The shape of the mark may be registerable under local legislation. a significant amount of funds for investment in local real estate and business. In the current environment, however, it is particularly important to focus on CRA opportunities. Consolidation in the banking, securities and financial services sector is bringing lenders' CRA performance under closer scrutiny. For instance, when Citibank and Travelers Group merged recently, Citibank made a 10-year, $115 billion commitment to lending and investing in low and moderate income communities and small businesses. Now is a good time to be an active CRA lender, particularly with regard to residential real estate in New York City's outer boroughs. A strong economy throughout New York has led to employment growth in the outer boroughs, resulting in a rise in affluence. Because employment in these areas has grown, along with disposable income, and residents are motivated to avoid eviction The removal of a tenant from possession of premises in which he or she resides or has a property interest done by a landlord either by reentry upon the premises or through a court action. because of the tight apartment market, collection losses have narrowed. Therefore, while gross revenue has not increased substantially over the past several years, net income has grown significantly due to decreased vacancy and collection losses combined with stable operating expenses. All of this translates into a healthy investment climate for banks that finance residential properties in New York City's outer boroughs. At present, CRA lending in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. is providing high-quality opportunities for banks, with the benefit of bringing in CRA credits, which may take on added importance in a potential bank merger or acquisition situation. (Headquartered in New York City, Koeppel Tener Real Estate Services, Inc. and KTR KTR Contractor KTR Keep Them Rolling KTR Katherine, Northern Territory, Australia - Tindal (Airport Code) KTR Kingstree, South Carolina (train station code) KTR Kauai Test Range Environ mental Services, Inc. comprise a full-service national due diligence company providing valuation, underwriting, tax consulting, environmental and engineering services.) |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion