Predatory lending practices can adversely affect:
Predatory lending practices can adversely affect:
Predatory lending practices can adversely affect a bank's Community Reinvestment Act (CRA) rating. The CRA encourages banks to serve all segments of their communities, especially low- and moderate-income neighborhoods, in a responsible and fair manner. Engaging in predatory lending undermines the objectives of the CRA, which can lead to regulatory scrutiny and a lower CRA rating, indicating the bank's poor commitment to serving its community responsibly.
The rating will be low
Predatory lending practices can indeed have a negative impact on a bank's Community Reinvestment Act (CRA) rating. The CRA encourages banks to meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods, in a manner consistent with safe and sound banking operations. Engaging in predatory lending practices undermines these objectives and can lead to regulatory scrutiny and a lower CRA rating, reflecting poorly on the bank's commitment to serving its community responsibly.