to the federal reserve board ’ s regulation z the following summary is organized according to the major disclosures required under regulation z. for more information, see the federal register notice the board approved on may 23, 2007. advertisements regulation z requires that advertisements that contain certain information about the cost of a loan disclose additional information to give the consumer a fuller picture of the cost. the regulation also requires that terms advertised actually be available. advertising discounted rates. under a proposal that would implement a bankruptcy act requirement, creditors that advertise a discounted initial annual percentage rate ( apr ) in connection with an application or solicitation would have to place the term " introductory " or " intro " near each mention of that rate. close to the first mention, creditors would disclose prominently the introductory rate's duration and the higher rate that would apply afterwards. creditors would also disclose, in the " schumer box, " the conditions under which consumers could lose the discount prematurely ( e. g., if the consumer pays late ). advertising " fixed " rates. consumer testing indicated that many consumers believe that a rate advertised as " fixed " will not change and do not understand that " fixed " may only mean that the rate does not vary based on changes in an index or formula. under the proposal, an advertisement may refer to a rate as " fixed " only if the advertisement specifies a period during which the rate cannot increase for any reason ( and the agreement does not give the creditor the right to increase it during that period ), or if the rate will not increase while the plan is open. advertising minimum payments. consumers commonly are offered the option to finance the purchase of goods or services ( such as appliances or furniture ) by establishing an open - end credit plan, which may or may not be accessed by a credit card. these offers often advertise monthly minimum payments associated with the purchase. under the proposal, advertisements stating a minimum monthly payment for an open - end credit plan to finance the purchase of goods or services must state, as prominently as the minimum payment, the time it would take to pay the balance and the total amount the consumer would pay if the consumer made only minimum payments. credit card applications and solicitations ; the “ schumer box ” under regulation z, credit card issuers are required to provide information about key costs and terms with their applications and solicitations in the form of a table often referred to as the " schumer box. "

submit a strategic plan for complying with cra in lieu of the standard approach to examination. a community development test was offered to wholesale and limited - purpose banks as a standard for their compliance. the agencies also required that examiners evaluate a bank's cra record within a performance context that considered socioeconomic factors and market conditions within the institution's service area. adapt the rules to changing market and economic circumstances and to give financial institutions the latitude to meet their cra obligations in diverse and cost - effective ways. has the cra achieved its objectives? research on the cra has tended to find positive net effects, but the results are not uniform. a paper by board staff members compared census tracts just above and below the low - and moderate - income threshold, finding that the tracts below the threshold had higher homeownership rates, higher growth in owner - occupied units, and lower vacancy rates than would have otherwise been predicted ( avery, calem, and canner, 2003 ). an analysis by harvard's joint center for housing studies concluded that the cra has expanded access to residential mortgages for lower - income borrowers, but that research also finds that the cra's effect is diminishing as mortgage lending by nonbank institutions expands ( apgar and duda, 2003 ). yet another review concludes that the cra has been effective in helping to overcome market failures and reduce discrimination at a relatively low cost, precisely because the cra sets forth a flexible standard rather than a rule ( barr, 2005 ). however, some critical studies have argued that the cra has been ineffective in addressing discrimination and market failures and that its social costs outweigh its benefits ( see, for example, hylton, 2006, and barr, 2005 ). the cra is clearly far from perfect. although its objectives are broad and ambitious, its net effects on lower - income neighborhoods are difficult to measure with precision. 10 addressing cra responsibilities also imposes costs on financial institutions. it appears that, at least in some instances, the cra has served as a catalyst, inducing banks to enter underserved markets that they might otherwise have ignored. at its most successful, the cra may have had a multiplier effect, supplementing its direct impact by stimulating new market - based, profit - driven economic activity in lower - income neighborhoods. the future of the cra as we look forward, the cra will have to continue evolving to reflect the ongoing