Under the Community Reinvestment Act, depository institutions are required to do what?

The Community Reinvestment Act (CRA) was enacted to encourage depository institutions to help meet the needs of the communities in which they operate, particularly focusing on low- and moderate-income neighborhoods. Under this act, one of the primary obligations of these institutions is to report the number of mortgage loans they issue to low and moderate-income borrowers. This requirement is intended to promote transparency and ensure that financial institutions are actively participating in their communities by providing accessible financing options to those who may traditionally have less access to credit.

This reporting allows regulators to assess whether banks are fulfilling their obligations to serve the credit needs of the community, which includes loan distribution to various income levels. By tracking this information, the CRA aims to prevent discrimination in lending and ensure that low and moderate-income individuals have equitable access to financial resources.

The other options do not reflect the primary requirements of the CRA. While providing services to local residents and ensuring financial equity is part of the CRA's goal, the specific mandated action is the reporting of loans issued to low and moderate-income borrowers, which directly reflects the act's aim to promote responsible lending practices in these communities.