§__.27(f) Strategic Plan Measurable Goals
§__.27(f) – 1 Q: How should annual measurable goals be specified in a strategic plan? A1. Annual measurable goals (e.g., number of loans, dollar amount, geographic location of activity, and benefit to low- and moderate-income areas or individuals) must be stated with sufficient specificity to permit the public and the Agencies to quantify what performance will be expected….
§__.27(g)(3) Public Notice of Proposed Strategic Plan
§__.27(g)(2) – 1 Q: How will the public receive notice of a proposed strategic plan? A1. An institution submitting a strategic plan for approval by the Agencies is required to solicit public comment on the plan for a period of 30 days after publishing notice of the plan at least once in a newspaper of general circulation. The…
§__.28 Requirements for Innovative Practices to Achieve Certain Ratings
§__.28 – 1 Q: Are innovative lending practices, innovative or complex qualified investments, and innovative community development services required for a “satisfactory” or “outstanding” CRA rating? A1. No. The performance criterion of “innovativeness” applies only under the lending, investment, and service tests applicable to large institutions and the community development test applicable to wholesale and limited purpose…
§__.28(a) Ratings for Domestic Branches in More Than One State
§__.28(a) – 1 Q: How are institutions with domestic branches in more than one state assigned a rating? A1. The evaluation of an institution that maintains domestic branches in more than one state (“multistate institution”) will include a written evaluation and rating of its CRA record of performance as a whole and in each state in which…
§__.28(a) Ratings for Institutions Operating in a Single State
§__.28(a) – 2 Q: How are institutions that operate within only a single state assigned a rating? A2. An institution that operates within only a single state (“single-state institution”) will be assigned a rating of its CRA record based on its performance within that state. In assigning this rating, the Agencies will separately present a single-state institution’s performance…
§__.28(a) Performance Weights for Large Retail Institutions
§__.28(a) – 3 Q: How do the Agencies weight performance under the lending, investment, and service test for large retail institutions? A3. A rating of “outstanding,” “high satisfactory,” “low satisfactory,” “needs to improve,” or “substantial noncompliance,” based on a judgment supported by facts and data, will be assigned under each performance test. Points will then be assigned to each…
§__.28(b) Performance Weight of Quantitative and Qualitative Criteria
§__.28(b) – 1 Q: How is performance under the quantitative and qualitative performance criteria weighted when examiners assign a CRA rating? A1. The lending, investment, and service tests each contain a number of performance criteria designed to measure whether an institution is effectively helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods,…
§__28(c) Discriminatory or Other Illegal Credit Practices Definition
§__.28(c) – 1 Q: What is meant by “discriminatory or other illegal credit practices”? A1. An institution engages in discriminatory credit practices if it discourages or discriminates against credit applicants or borrowers on a prohibited basis, in violation, for example, of the Fair Housing Act or the Equal Credit Opportunity Act (as implemented by Regulation B). Examples…
§__.29(a) CRA Rating Effect on Bank Applications
§__.29(a) – 1 Q: What weight is given to an institution’s CRA performance examination in reviewing an application? A1. In reviewing applications in which CRA performance is a relevant factor, information from a CRA examination of the institution is a particularly important consideration. The examination is a detailed evaluation of the institution’s CRA performance by its supervisory…
§__.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…