§__.22(b)(2) & (3) Geographic Distribution and Borrower Characteristics of Loans
§__.22(b)(2) & (3) – 1 Q: How do the geographic distribution of loans and the distribution of lending by borrower characteristics interact in the lending test applicable to either large or small institutions? A1. Examiners generally will consider both the distribution of an institution’s loans among geographies of different income levels, and among borrowers of different income levels and…
§__.22(b)(2) & (3) Lending in All Portions of Assessment Area
§__.22(b)(2) & (3) – 2 Q: Must an institution lend to all portions of its assessment area? A2. The term “assessment area” describes the geographic area within which the agencies assess how well an institution, regardless of examination type, has met the specific performance tests and standards in the rule. The Agencies do not expect that simply…
§__.22(b)(2) & (3) Affiliate Lending Consideration in Assessment Areas
§__.22(b)(2) & (3) – 3 Q: Will examiners take into account loans made by affiliates when evaluating the proportion of an institution’s lending in its assessment area(s)? A3. Examiners will not take into account loans made by affiliates when determining the proportion of an institution’s lending in its assessment area(s), even if the institution elects to have…
§__.22(b)(2) & (3) Loans Outside an Assessment Area
§__.22(b)(2) & (3) – 4 Q: When will examiners consider loans (other than community development loans) made outside an institution’s assessment area(s)? A4. Consideration will be given for loans to low- and moderate-income persons and small business and farm loans outside of an institution’s assessment area(s), provided the institution has adequately addressed the needs of borrowers within…
§__.22(b)(2) & (3) Evaluation of Mortgage Loans in Middle- or Upper-Income Individuals
§__.22(b)(2) & (3) – 5 Q: Under the lending test applicable to small, intermediate small, or large institutions, how will examiners evaluate home mortgage loans to middle- or upper-income individuals in a low- or moderate-income geography? A5. Examiners will consider these home mortgage loans under the performance criteria of the lending test, i.e., by number and amount…
§__.22(b)(4) Actual Loan Amounts for Community Development Loans
§__.22(b)(4) – 1 Q: When evaluating an institution’s record of community development lending under the lending test applicable to large institutions, may an examiner distinguish among community development loans on the basis of the actual amount of the loan that advances the community development purpose? A1. Yes. When evaluating the institution’s record of community development lending under…
§__.22(b)(4) CRA Consideration of Community Development Loans
§__.22(b)(4) – 2 Q: How do examiners consider community development loans in the evaluation of an institution’s record of lending under the lending test applicable to large institutions? A2. An institution’s record of making community development loans may have a positive, neutral, or negative impact on the lending test rating. Community development lending is one of five…
§__.22(b)(5) Evaluation of Innovative or Flexible Lending
§__.22(b)(5) – 1 Q: What do examiners consider in evaluating the innovativeness or flexibility of an institution’s lending under the lending test applicable to large institutions? A1. In evaluating the innovativeness or flexibility of an institution’s lending practices (and the complexity and innovativeness of its community development lending), examiners will not be limited to reviewing the overall…
§__.22(c)(1) Consideration of Affiliate Lending Categories
§__.22(c)(1) – 1 Q: If an institution, regardless of examination type, elects to have loans by its affiliate(s) considered, may it elect to have only certain categories of loans considered? A1. Yes. An institution may elect to have only a particular category of its affiliate’s lending considered. The basic categories of loans are home mortgage loans, small…
§__.22(c)(2)(i) Affiliate Lending Constraint
§__.22(c)(2)(i) – 1 Q: Regardless of examination type, how is this constraint [“no affiliate may claim a loan origination or loan purchase if another institutions claims the same loan origination or purchase”] on affiliate lending applied? A1. This constraint prohibits one affiliate from claiming a loan origination or purchase claimed by another affiliate. However, an institution can…