§__.12(h) Statewide vs. Assessment Area Benefit
§__.12(h) – 6 Q: Must there be some immediate or direct benefit to the institution’s assessment area(s) to satisfy the regulations’ requirement that qualified investment and community development loans or services benefit an institution’s assessment area(s) or a broader statewide or regional area that includes the institution’s assessment area(s)? A6: No. The regulations recognize that community development…
§__.12(h) Regional Area Definition
§__.12(h) – 7 Q: What is meant by the term “regional area”? A7. A “regional area” may be an intrastate area or a multistate area that includes the financial institution’s assessment area(s). Regional areas typically have some geographic, demographic, and/or economic interdependencies and may conform to commonly accepted delineations, such as “the tri-county area” or the “mid-Atlantic…
§__.12(h) Primary Purpose Clarification
§__.12(h) – 8 Q: What is meant by the term “primary purpose” as that term is used to define what constitutes a community development loan, a qualified investment, or a community development service? A8: A loan, investment, or service has as its primary purpose community development when it is designed for the express purpose of revitalizing…
§__.12(i) Provision of Financial Services Clarification
§__.12(i) – 1 Q: In addition to meeting the definition of “community development” in the regulation, community development services must also be related to the provision of financial services. What is meant by the “provision of financial services”? A1. Providing financial services means providing services of the type generally provided by the financial services industry. Providing…
§__.12(i) Employee or Director Charitable Activities
§__.12(i) – 2 Q: Are personal charitable activities provided by an institution’s employees or directors outside the ordinary course of their employment considered community development services? A2. No. Services must be provided as a representative of the institution. For example, if a financial institution’s director, on her own time and not as a representative of the institution,…
§__.12(i) Community Development Services Examples
§__.12(i) – 3 Q: What are examples of community development services? A3. Examples of community development services include, but are not limited to, the following: Providing technical assistance on financial matters to nonprofit, tribal, or government organizations serving low- and moderate-income housing or economic revitalization and development needs; Providing technical assistance on financial matters to small businesses…
§__.12(j) Home Equity Loans as Consumer Loans
§__.12(j) – 1 Q: Are home equity loans considered “consumer loans”? A1. Home equity loans made for purposes other than home purchase, home improvement, or refinancing home purchase or home improvement loans are consumer loans if they are extended to one or more individuals for household, family, or other personal expenditures. Source: Interagency Questions & Answers Regarding…
§__.12(j) Home Equity Lines of Credit as Consumer Loans
§__.12(j) – 2 Q: May a home equity line of credit be considered a “consumer loan” even if part of the line is for home improvement purposes? A2. If the predominant purpose of the line is home improvement, the line may only be reported under HMDA and may not be considered a consumer loan. However, the full…
§__.12(j) Reporting Loans with Multiple Purposes
§__.12(j) – 3 Q: How should an institution collect or report information for loans the proceeds of which will be used for multiple purposes? A3. If an institution makes a single loan or provides a line of credit to a customer to be used for both consumer and small business purposes, consistent with the instructions for the…
§__.12(l) Home Mortgage Loan v. Home Purchase Loan
§__.12(l) – 1 Q: Does the term “home mortgage loan” include loans other than “home purchase loan”? A1. Yes. “Home mortgage loan” includes “home improvement loan,” “home purchase loan,” and “refinancing,” as defined in the HMDA regulation, Regulation C, 12 CFR part 1003. This definition also includes multifamily (five-or-more families) dwelling loans, and loans for the purchase of…