{"product_id":"finance-and-economics-discussion-series-united-states-federal-reserve-board-9781288706976","title":"Finance and Economics Discussion Series: Giving Credit Where Credit Is Due? the Community Reinvestment ACT and Mortgage Lending in Lower-Income Neighb","description":"\u003cbr\u003e I identify and quantify the mortgage supply effect of the Community Reinvestment Act (CRA), a law mandating that banks help provide credit in lower-income neighborhoods, by exploiting a discontinuity in the selection rule determining which census tracts CRA targets. Using a comprehensive source of micro data on MSA mortgage applications, I find that CRA affects bank lending primarily in large MSA's, where banks are most scrutinized. The analysis indicates that CRA's effect on bank originations was about 4% between 1994 and 1996, and expanded to 8% in 1997-2002, consistent with the timing of a reform strengthening CRA. I provide some evidence that marginal loans go to atypical, potentially higher-risk borrowers. The results also indicate net \"crowd-in\" lending to targeted tracts by unregulated institutions rises in post-reform years, in particular to those areas that have had relatively low home purchase volume in the recent past, consistent with a model of information externalities in credit markets. Finally, using changes in tract eligibility status following the release of Census 2000 data as an additional source of variation, I find that CRA increased bank lending to newly targeted tracts in large MSA's by 4-5% in 2004 and 2005. \u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eAuthor:\u003c\/b\u003e United States Federal Reserve Board,Neil Bhutta\u003cbr\u003e\u003cb\u003eISBN-10:\u003c\/b\u003e 1288706979\u003cbr\u003e\u003cb\u003eISBN-13:\u003c\/b\u003e 9781288706976\u003cbr\u003e\u003cb\u003ePublisher:\u003c\/b\u003e Bibliogov\u003cbr\u003e\u003cb\u003eLanguage:\u003c\/b\u003e English\u003cbr\u003e\u003cb\u003ePublished:\u003c\/b\u003e 02\/05\/2013\u003cbr\u003e\u003cb\u003ePages:\u003c\/b\u003e 46\u003cbr\u003e\u003cb\u003eFormat:\u003c\/b\u003e Paperback\u003cbr\u003e\u003cb\u003eWeight:\u003c\/b\u003e 0.22lbs\u003cbr\u003e\u003cb\u003eSize:\u003c\/b\u003e 9.69h x 7.44w x 0.10d","brand":"United States Federal Reserve Board","offers":[{"title":"Paperback","offer_id":48873002107135,"sku":"9781288706976","price":15.75,"currency_code":"USD","in_stock":true}],"url":"https:\/\/www.whiterainbookhouse.com\/products\/finance-and-economics-discussion-series-united-states-federal-reserve-board-9781288706976","provider":"WR Book House","version":"1.0","type":"link"}