EDS Offers Help on CRA Compliance; Service Compiles and Maps out Data on Community Lending
Sullivan, Deidre, American Banker
EDS Corp. has announced the release of a new service designed to help banks comply with the Community Reinvestment Act.
Officials of the General Motors Corp. subsidiary said the service was developed to help financial institutions make sure they spread their lending activities throughout the communities in their markets, including low-income areas, as required by law.
Recent changes in 1977's Community Reinvestment Act require banks to publicly disclose their loan and deposit distribution. The service makes it easier to compile, read, and analyze this kind of information, EDS officials said.
Not Just Software
The service is the newest offering in EDS' regulatory and compliance product line, which includes software for reporting and for disaster-recovery planning.
Unlike most compliance products, Community Reinvestment and Distribution Analysis isn't simply software. EDS handles the task of pulling extracts of an institution's deposits and loans from a host system according to institution-defined criteria.
These extracts are then run through geographic-coding software to produce maps and reports. Lending and deposit activity are divided by county, zip code, census trace, or landmarks. …