Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 1

What does the Community Reinvestment Act (CRA) aim to address?

1. Gender wage discrimination

2. Consumer credit reporting accuracy

3. Discriminatory practices in housing and lending

4. Income tax discrepancies

The correct answer is: Discriminatory practices in housing and lending

The Community Reinvestment Act (CRA) primarily aims to address discriminatory practices in housing and lending by encouraging financial institutions to meet the credit needs of the communities in which they operate, particularly low- and moderate-income neighborhoods. Enacted in 1977, the CRA reflects a commitment to fair lending practices, ensuring that banks extend credit fairly and equitably to all sections of the community regardless of race or ethnicity. By promoting equal access to credit, the CRA helps to counteract the history of redlining and other discriminatory practices that have restricted access to housing and financial services for certain populations. This aligns with the act’s goal of fostering investment in underserved areas, thereby enhancing community stability and growth. The focus on housing and lending practices ensures that financial institutions not only comply with the law but also actively contribute to the economic well-being of all community residents. The other options relate to important social issues but do not align with the primary focus of the CRA. They each address distinct problems that may require different types of legislation or regulatory approaches, such as wage discrimination or credit reporting integrity.