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54 <br />City of Cuyahoga Falls, Ohio 33 <br />B8 o BB Analysis of Impediments to Fair Housing Choice <br />financial institutions to help meet the credit needs of their local communities, including low - <br />moderate income neighborhoods. The Act requires that lenders accommodate the public <br />in the three tests of: credit; service; and, investment. The statute calls for regulatory <br />agencies to assess the records of financial institutions in meeting local credit needs. The <br />CRA specifically reaffirms that financial institutions should be encouraged to meet local <br />credit needs only in ways which are consistent with the safe and sound operation of such <br />institutions <br />Another important aspect of CRA for communities is that it give individuals, community <br />groups or local government the opportunity to intervene in the decision making process. <br />For instance, when a financial institution files an application to merge or acquire another <br />institution, opens or closes a branch or applies for new insurance, the community can offer <br />its assessment of the institution's community lending performance. Often by filing a CRA <br />protest or challenge, a group gains the leverage it needs to compel a lender to address <br />local banking needs and formulate a commitment to meet those needs. <br />Only through nondiscriminatory credit, service and investment can the lending industry <br />make the American dream of home ownership a reality. <br />The statistical databases used for the analysis were Peertrax HMDA Analyzer. Peertrax <br />is a data software program based on annual reports made by individual lenders to their <br />respective federal financial regulator agency. Maptitude mapping software was used for <br />any mapping portions of the report.. <br />7.1 Introduction to Lending In Cuyahoga Falls <br />Important to a community's financial well being is home ownership rates. Access to <br />mortgage credit for expectant home buyers is expected to be there by the community. <br />Programs that offer home ownership must be available without regards to discrimination, <br />income or profession. To truly live up to fair housing law, all persons must have the ability <br />to live where they want and can afford. <br />Access to mortgage credit enables residents to own their homes, and access to home <br />improvement loans allows them to keep older houses in good condition. Access to <br />refinancing loans assures access to many of the dreams that all Americans have. All of <br />these help keep neighborhoods attractive and residents vested in their community .63 <br />Inadequate lending performance results in various long term and far ranging community <br />problems. Disinvestment is probably the most devastating result. Disinvestment in <br />Cuyahoga Falls by lenders reduces housing finance options for borrowers and weakens <br />competition in the mortgage market for low and moderate income neighborhoods. High <br />mortgage costs, less favorable mortgage loan terms, deteriorating neighborhoods, reduced <br />63 Profile, Federal Reserve Bank of Cleveland, Fall 2000 <br />