As of April 30, 2014, 82 percent of the Department of the Treasury's (Treasury) $570 million total investment in eligible banks and credit unions through the Community Development Capital Initiative (CDCI) was still outstanding. Sixteen institutions have exited the program, leaving 29 banks and 39 credit unions, respectively, in the program. Treasury had received repayments and investment income o...

While the number of community banks and credit unions has declined in recent years, they have remained important lenders to small businesses and other local customers. From 1985 through 2010, the number of banks under $10 billion in assets and credit unions declined by over 50 percent to 7,551 and 7,339, respectively. The decline resulted largely from consolidations, which were facilitated by chan...

The Federal Home Loan Bank System is a government-sponsored enterprise comprising 12 regionally-based Federal Home Loan Banks (FHLBank), the primary mission of which is to support housing finance and community and economic development. Each FHLBank makes loans (advances) to member financial institutions in its district, such as banks, which traditionally are secured by single-family mortgages. In...

Pursuant to a congressional request, GAO reviewed large bank holding company mergers and the impact of such mergers on low- and moderate-income (LMI) areas, focusing on: (1) the Federal Reserve Board's (FRB) legal responsibilities in assessing Bank Holding Company Act of 1956 (BHC) mergers for Community Reinvestment Act of 1977 (CRA) performance; (2) FRB's process for assessing the CRA performance...

Pursuant to a congressional request, GAO reviewed the major problems in implementing the Community Reinvestment Act (CRA), focusing on the: (1) extent to which regulatory reforms address these problems; (2) challenges regulators face in ensuring the success of CRA reforms; and (3) initiatives taken to enhance lending opportunities in low-income areas.GAO found that: (1) bankers, community groups,...

Pursuant to a legislative requirement, GAO reviewed the Resolution Trust Corporation's (RTC) compliance with a statutory requirement to: (1) resolve failed thrifts in the least costly manner; and (2) calculate and document its evaluation of alternative resolutions of failed thrifts.GAO found that: (1) RTC has improved its resolution process and curtailed its practice to sell performing loans durin...

Pursuant to legislative requirement, GAO reviewed credit availability in rural America, focusing on: (1) the availability of credit for agricultural production, rural business development, and rural infrastructure development; and (2) lending institutions' investments in their communities.GAO found that: (1) in general, agricultural production credit was available for creditworthy borrowers, altho...

Pursuant to a congressional request, GAO provided information on the federal government's use of private attorneys, focusing on: (1) the authorities agencies cite to contract for legal services; and (2) attorneys' fees awarded to prevailing parties.GAO found that: (1) 59 agencies reported awarding 4,567 contracts and paying $587 million for legal services during fiscal year (FY) 1991; (2) 123 of t...

Pursuant to a congressional request, GAO discussed its review of compliance with the flood insurance mandatory purchase requirement, focusing on: (1) the extent of compliance; (2) the reasons for noncompliance; and (3) the financial risk to the federal government from noncompliance. GAO noted that: (1) the Federal Disaster Protection Act of 1973 requires the purchase of flood insurance for any fed...

Pursuant to a congressional request, GAO reviewed property owners' and lenders' compliance with the mandatory flood insurance provisions of the Flood Disaster Protection Act of 1973.GAO found that: (1) the provision required flood insurance coverage only for properties in special flood hazard areas secured by federally regulated or secured loans; (2) in Maine and Texas, about 22 percent and 79 per...