§__.29(a) Effect of Future Commitments on a Bank Application
§__.29(a) – 2 Q: What consideration is given to an institution’s commitments for future action in reviewing an application by those Agencies that consider such commitments? A2. Commitments for future action are not viewed as part of the CRA record of performance. In general, institutions cannot use commitments made in the applications process to overcome a seriously…
§__.29(b) Effect of Interested Parties Comments on Bank Application
§__.29(b) – 1 Q: What consideration is given to comments from interested parties in reviewing an application? A1. Materials relating to CRA performance received during the application process can provide valuable information. Written comments, which may express either support for or opposition to the application, are made a part of the record in accordance with the Agencies’ procedures, and…
§__.29(b) Requirements to Enter Agreements with Private Parties
§__.29(b) – 2 Q: Is the institution required to enter into agreements with private parties? A2. No. Although communications between an institution and members of its community may provide a valuable method for the institution to assess how best to address the credit needs of the community, the CRA does not require an institution to enter into…
§__.41(a) Evaluation of Assessment Areas
§__.41(a) – 1 Q: How do the Agencies evaluate “assessment areas” under the CRA regulations? A1. The rule focuses on the distribution and level of an institution’s lending, investments, and services rather than on how and why an institution delineated its assessment area(s) in a particular manner. Therefore, the Agencies will not evaluate an institution’s delineation of…
§__.41(a) Institution Affiliate Impact on Assessment Areas
§__.41(a) – 2 Q: If an institution elects to have the Agencies consider affiliate lending, will this decision affect the institution’s assessment area(s)? A2. If an institution elects to have the lending activities of its affiliates considered in the evaluation of the institution’s lending, the geographies in which the affiliate lends do not affect the institution’s delineation…
§__.41(a) Selecting a Specific Racial or Ethnic Group in Place of Assessment Area
§__.41(a) – 3 Q: Can a financial institution identify a specific racial or ethnic group rather than a geographic area as its assessment area? A3. No, assessment areas must be based on geography. The only exception to the requirement to delineate an assessment area based on geography is that an institution, the business of which predominantly consists…
§__.41(c)(1) Other Units of Local Governments as Political Subdivisions
§__.41(c)(1) – 1 Q: Besides cities, towns, and counties, what other units of local government are political subdivisions for CRA purposes? A1. Townships and Indian reservations are political subdivisions for CRA purposes. Institutions should be aware that the boundaries of townships and Indian reservations may not be consistent with the boundaries of the census tracts (i.e., geographies)…
§__.41(c)(1) Wards and Districts as Political Subdivisions
§__.41(c)(1) – 2 Q: Are wards, school districts, voting districts, and water districts political subdivisions for CRA purposes? A2. No. However, an institution that determines that it predominantly serves an area that is smaller than a city, town, or other political subdivision may delineate as its assessment area the larger political subdivision and then, in accordance with…
§__.41(d) Adjustment to the Boundaries of an Assessment Area
§__.41(d) – 1 Q: When may an institution adjust the boundaries of an assessment area to include only a portion of a political subdivision? A1. Institutions must include whole geographies (i.e., census tracts) in their assessment areas and generally should include entire political subdivisions. Because census tracts are the common geographic areas used consistently nationwide for data collection,…
§__.41(e)(3) Arbitrary Exclusion of LMI Geographies in an Assessment Area
§__.41(e)(3) – 1 Q: How will examiners determine whether an institution has arbitrarily excluded low- or moderate-income geographies? A1. Examiners will make this determination on a case-by-case basis after considering the facts relevant to the institution’s assessment area delineation. Information that examiners will consider may include income levels in the institution’s assessment area(s) and surrounding geographies; locations of…