Community Reinvestment Act

• The Community Reinvestment Act was enacted to encourage banks to lend money to home buyers in areas that were "redlined." Redlining occured when lenders increased the interest rate of mortgages or deny mortgages in certain areas. Such areas were often low- and moderate-income housing areas. Redlining disproportionately impacted minority home buyers.
  
  

Federal Fair Housing Act

• The Federal Fair Housing Act prohibits discrimination based on race, national origin, religion, sex, disability or familial status when renting or selling a house. Houses with rental units that are owner occupied and have four or fewer units are exempt from the Act's requirements.
  
  

Comparison

• Both acts prohibit discrimination in lending money to home buyers. The Community Reinvestment Act is enforced by the Department of Treasury and is a regulation solely affecting lending institutions. The Fair Housing Act is enforced by the Department of Housing and Urban Development and affects lenders, sellers and landlords. A complaint of discrimination may be simultaneously filed with both agencies.