§__.22(a)(2) CRA Consideration for Loan Participation Purchases
§__.22(a)(2) – 6 Q: Do institutions receive consideration for purchasing loan participations? A6. Yes. Examiners will consider the amount of loan participations purchased when evaluating an institution’s record of helping to meet the credit needs of its assessment area(s) through the origination or purchase of specified types of loans, regardless of examination type. As with other loan…
§__.22(a)(2) Small Business Refinances Secured by Residential Real Estate
§__.22(a)(2) – 7 Q: How are refinancings of small business loans, which are secured by a one-to-four family residence and that have been reported under HMDA as a refinancing, evaluated under CRA? A7. A loan of $1 million or less with a business purpose that is secured by a one- to-four family residence is considered a small…
§__.22(b)(1) CRA Evaluation of Affiliate Lending Referrals
§__.22(b)(1) – 1 Q: How will the Agencies apply the lending activity criterion to discourage an institution from originating loans that are view favorably under CRA in the institution itself and referring other loans, which are not viewed as favorably, for origination by an affiliate? A1. Examiners will review closely institutions with (1) a small number and…
§__.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…