§__.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…
§__.22(c)(2)(ii)-1 Affiliate Lending Constraint
§__.22(c)(2)(ii) – 1 Q: Regardless of examination type, how is this constraint [“if an institution elects to have its supervisory Agency consider loans within a particular lending category made by one or more of the institution’s affiliates in a particular assessment area, the institution shall elect to have the Agency consider all loans within that lending category in…
§__.22(c)(2)(ii)-2 Affiliate Lending Constraint
§__.22(c)(2)(ii) – 2 Q: Regardless of examination type, how is this constraint [“if an institution elects to have its supervisory Agency consider loans within a particular lending category made by one or more of the institution’s affiliates in a particular assessment area, the institution shall elect to have the Agency consider all loans within that lending category in…
§__.22(d) Equity Investments in a Third Party Loan Consortium
§__.22(d) – 1 Q: Will equity and equity-type investments in a third party receive consideration under the lending test? A1. If an institution has made an equity or equity-type investment in a third party, community development loans made by the third party may be considered under the lending test. On the other hand, asset-backed and debt securities that…
§__.22(d) Evaluation of Loans Made by Consortia or Third Parties
§__.22(d) – 2 Q: Regardless of examination types, how will examiners evaluate loans made by consortia or third parties? A2. Loans originated or purchased by consortia in which an institution participates or by third parties in which an institution invests will be considered only if they qualify as community development loans and will be considered only under…
§__.22(d) Community Development Loans Held in Common
§__.22(d) – 3 Q: In some circumstances, an institution may invest in a third party, such as a community development bank, that is also an insured depository institution and is thus subject to CRA requirements. If the investing institutions requests its supervisory Agency to consider its pro rata share of community development loans made by the…
§__.23(a) Indirect Investment in Community Development Fund
§__.23(a) – 1 Q: May an institution, regardless of examination type, receive consideration under the CRA regulations if it invests indirectly through a fund, the purpose of which is community development, as that is defined in the CRA regulations? A1. Yes, the direct or indirect nature of the qualified investment does not affect whether an institution will…
§__.23(a) Documentation of Assessment Area Impact from Nationwide Fund Investments
§__.23(a) – 2 Q: In order to receive CRA consideration, what information may an institution provide that would demonstrate that an investment in a nationwide fund with a primary purpose of community development will directly or indirectly benefit one or more of the institution’s assessment area(s) or a broader statewide or regional area that includes the…