Former Gov. Edward King signs a document in the company of Department of Environmental Protection Commissioner Anthony Cortese in this undated archive photo. MassDEP photo

What: Massachusetts’ Own CRA
When: June 15, 1982
Where: Beacon Hill  

Sweeping banking legislation signed by then-Gov. Edward King significantly changed the Massachusetts banking landscape. Provisions of the 245-page law let mutual and cooperative banks convert to stock banks, while different types of banks – for example, a commercial bank and a savings bank – could now merge. 

While the law was considered banking deregulation, another provision introduced a state-level Community Reinvestment Act, five years after the federal law was enacted.  

Administered by the Massachusetts Division of Banks, state-level CRA was extended to Massachusetts-chartered credit unions later in 1982 and to independent mortgage companies in 2007. 

“In connection with its examination of a bank, the commissioner shall assess the record of performance of the bank in helping to meet the credit needs of its entire community, including low and moderate-income neighborhoods, consistent with safe and sound operation of the bank.” 

 — From the 1982 Massachusetts Banking Act 

To celebrate its 150th anniversary, Banker & Tradesman is highlighting significant moments in the history of Massachusetts’ real estate and banking industries. To suggest a topic, email editorial@thewarrengroup.com.