Where can I find the CRA Rating for a bank?
CRA ratings are the only public bank examination rating. They are announced each month by the bank regulators. You can also search for any bank’s CRA rating on a special website published by the FFIEC. Search here.
How does a bank get an Outstanding CRA rating?
There is no magic formula to obtaining an Outstanding CRA rating. The FFIEC has published CRA examination procedures that are used by the Federal bank regulators to conduct CRA exams. The procedures are specific to the bank’s CRA size. During an examination, the CRA examiner will consider dozens of factors to determine a bank’s overall…
What happens if a bank gets a bad CRA rating?
Of the four ratings a bank can receive for their CRA performance, only the Needs to Improve and Substantial Non-Compliance are viewed as “bad” ratings. However, especially in the case of a Needs to Improve rating, just because the bank received a negative rating doesn’t mean that the bank is ignoring the community. In some…
What is peer lending data?
Peer lending data is accumulated each year by most banks and other lenders in the United States. The requirements for compiling and reporting peer lending data are outlined in federal regulations. The Home Mortgage Disclosure Act requires mortgage lenders to report all mortgage applications in a standardize format each year. The CRA requires banks to…
12 CFR §345.11 Authority, purposes and scope
§ 345.11 Authority, purposes, and scope. (a) Authority and OMB control number — (1) Authority. The authority for this part is 12 U.S.C. 1814–1817, 1819–1820, 1828, 1831u and 2901–2907, 3103–3104, and 3108(a). (2) OMB control number. The information collection requirements contained in this part were approved by the Office of Management and Budget under the provisions…
12 CFR §345.12 Definitions
§ 345.12 Definitions. For purposes of this part, the following definitions apply: (a) Affiliate means any company that controls, is controlled by, or is under common control with another company. The term control has the meaning given to that term in 12 U.S.C. 1841(a)(2), and a company is under common control with another company if both…
12 CFR §345.21 Performance tests, standards, and ratings, in general
§ 345.21 Performance tests, standards, and ratings, in general. (a) Performance tests and standards. The FDIC assesses the CRA performance of a bank in an examination as follows: (1) Lending, investment, and service tests. The FDIC applies the lending, investment, and service tests, as provided in §§345.22 through 345.24, in evaluating the performance of a bank,…
12 CFR §345.22 Lending test
§ 345.22 Lending test. (a) Scope of test. (1) The lending test evaluates a bank’s record of helping to meet the credit needs of its assessment area(s) through its lending activities by considering a bank’s home mortgage, small business, small farm, and community development lending. If consumer lending constitutes a substantial majority of a bank’s business,…
12 CFR §345.23 Investment test
§ 345.23 Investment test. (a) Scope of test. The investment test evaluates a bank’s record of helping to meet the credit needs of its assessment area(s) through qualified investments that benefit its assessment area(s) or a broader statewide or regional area that includes the bank’s assessment area(s). (b) Exclusion. Activities considered under the lending or service…
12 CFR §345.24 Service test
§ 345.24 Service test. (a) Scope of test. The service test evaluates a bank’s record of helping to meet the credit needs of its assessment area(s) by analyzing both the availability and effectiveness of a bank’s systems for delivering retail banking services and the extent and innovativeness of its community development services. (b) Area(s) benefited. Community…