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Links with the orange box icon () go to pages outside of the website.
0000001890 00000 n Community Development Finance 0000000016 00000 n Upon conclusion of CRA examinations, examiners must prepare a written evaluation of the institution's record of meeting the credit needs of its assessment area. But beginning in 2005, the Bureau began issuing new census data reports every five years. 0000019691 00000 n
Occasionally, however, examiners identify assessment areas that do not meet the regulations technical criteria. 271 0 obj <>stream
The monthly Empire State Manufacturing Survey tracks the sentiment of New York State manufacturing executives regarding business conditions. 0000005449 00000 n
0000008140 00000 n 0000024111 00000 n %PDF-1.5 % The CRA also distinguishes limited-purpose and wholesale institutions. 0000026467 00000 n > First Quarter 2014 Do all banks have the same CRA responsibilities?
0000005992 00000 n Examiners may consider the following factors to determine if this has occurred: Finally, assessment areas must consist of whole geographies and may not extend substantially beyond an MSA boundary or beyond a state boundary unless they are located in a multistate MSA.15 When more than one MSA is combined with another in a combined statistical area (CSA), performance is measured using data at the MSA level not the CSA level.16 If an institution serves areas in a state that are separate and not contiguous, each area should be delineated as a separate assessment area.17 Similarly, if an institution serves an MSA with counties that abut the MSA but are not adjacent to one other (i.e., they extend substantially beyond the MSA), each county would be a separate assessment area.18 However, if the MSA and counties are in the same CSA, they could all be included in the same assessment area, except the data used in measuring CRA performance would not be based on the CSA-level data but on the MSA-level data for the MSA, and at the state, non-MSA levels for the counties.19. 0000007404 00000 n 0000004653 00000 n 0000001731 00000 n The extent of lending in D and E counties would inform this decision. Answer: Senior management should periodically review its assessment area to ensure that it is still reasonable, particularly as the bank experiences growth, either through acquisition or the geographic expansion of its loan volume. Submit comments on the following websites: For banks supervised by the New York Fed, submit comments here. 0000012967 00000 n xref The factors that influence the designation of an assessment area can change over time.
For example, the 2010 census data revealed that 17 percent of the census tracts designated as moderate-income tracts in 2000 changed to middle-income tracts in the 2010 census. For banks supervised by the New York Fed, use this tool. Although an institutions asset size and operations determine which CRA tests are considered, all of the tests measure an institutions performance in its assessment area(s).5 It is therefore critically important that institutions subject to the CRA understand the requirements for delineating assessment areas. 0000009853 00000 n
Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), CRA Performance Context: Why It Is Important for Community Development ad How to Improve It, Understanding Community Development Needs Through the CRA Performance Context, The Effectiveness of the Community Reinvestment Act, Video: The Small Bank and Intermediate Small Bank CRA Examination, Federal Financial Institution Examination Council (FFIEC) Explanation of the Community Reinvestment Act Asset-Size Threshold Change, Interagency Questions and Answers Regarding Community Reinvestment, Healthy Communities: A Framework for Meeting CRA Obligations, Public Evluations for Federal Reserve Bank-Supervised Financial Institutions in the Second District, Interagency Interpretive Letters About CRA Regulations, Closing the Digital Divide: A Framework for Meeting CRA Obligations, The Community Reinvestment Act, Bank Reinvestment, and the Opportunity of Equitable Economic Development in New York City, Small Business Investment Companies: Investment Option for Banks, Engaging Workforce Development: A Framework for Meeting CRA Obligations, How Banks Can Support Workforce Development, Beyond CRA: Meaningful Collaborations between Financial Institutions and Workforce Entities, Leveraging Financial Education to Improve the Impact of Workforce Innovation and Opportunity Act (WIOA), Office of the Comptroller of the Currency, A description of the financial institution, A description of the financial institution's assessment area, Conclusions regarding the financial institution's CRA performance, including the facts, data and analyses that were used to form such conclusions.
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0000006570 00000 n
212-720-7969 0000003095 00000 n Director of Community Development Finance The mission of the Applied Macroeconomics and Econometrics Center (AMEC) is to provide intellectual leadership in the central banking community in the fields of macro and applied econometrics. Third, maps can help determine whether an assessment area is extremely large, has an unusual configuration, or has geographic barriers. The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality. 0000003858 00000 n 237 0 obj <>stream A copy of the public section of the most recent CRA performance evaluation must be placed in a bank's public file.
0000004475 00000 n chelsea.cruz@ny.frb.org, Kellye Jackson All evaluations are customized to reflect the characteristics and asset size of depository institutions. Does the CRA offer credit for workforce development programs?
0000026389 00000 n Because a performance evaluation focuses on an institutions lending, investments, and/or services, examiners will generally not downgrade an institutions CRA rating for violating the technical requirements for designating assessment areas. Learn how to submit it. Answer: A banks assessment area should include the geographies in which the bank has its main office, its branches, and its deposit-taking ATMs, as well as the surrounding geographies in which the bank has originated or purchased a substantial portion of its loans. The ratings are considered when banks request to merge with other financial institutions or plan to expand to other locations. Can you submit comments on banks CRA performance? For example, an institutions lending patterns can change, especially if the institution is growing. 0000019915 00000 n 0000011075 00000 n
200 0 obj <> endobj For banks supervised by the New York Fed, use this tool. 1403 0 obj <> endobj At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. 0
0000025700 00000 n The Federal Financial Institution Examination Council (FFIEC) publishes annual reports on median family income. hb```b``Ke`c`` db@ !V( =.K t1-;c'Lwf4p4a_NE/9f5ov27xFn?sT4\]qX$t6CSGomU9L{$% pd-m+z"9yKg"i:q}AuTv NaE0d4`20&TPPP 7hj( :2p4bld \I ,E Q;H-< A l 0000010236 00000 n 0000003612 00000 n
How can you comment on banks CRA performance? 1451 0 obj <>stream
Does the CRA offer credit for financial inclusion programs? We are connecting emerging solutions with funding in three areashealth, household financial stability, and climateto improve life for underserved communities. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve. endstream endobj 1450 0 obj <>/Filter/FlateDecode/Index[75 1328]/Length 55/Size 1403/Type/XRef/W[1 1 1]>>stream
0000004831 00000 n The Center for Microeconomic Data offers wide-ranging data and analysis on the finances and economic expectations of U.S. households. Instead, examiners would designate corrected assessment area(s) to evaluate CRA performance. 0000003983 00000 n 0000007968 00000 n Regulators have added to the definition of community development activities those that incorporate requirements for creating or improving access to workforce development and job training programs for low- and moderate-income or unemployed individuals. 0000238003 00000 n
Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to email this to a friend (Opens in new window). Our economists engage in scholarly research and policy-oriented analysis on a wide range of important issues. 0000001553 00000 n Specific issues and questions should be raised with your primary regulator. Visit the FFIEC Interagency CRA Rating Search tool. Question: Are there limitations on the delineation of an assessment area? 0000003001 00000 n 0000008984 00000 n Sorry, your blog cannot share posts by email. In order to receive credit under the CRA, loans, investments and services made by banks must have a primary purpose that generally improves the circumstances for low- and moderate-income families or individuals as well as stabilizes and/or revitalizes their neighborhoods. The regulation allows institutions to adjust their assessment areas in any of these three circumstances.20. After conducting assessments of banks CRA activities, studying factors such as local demographic and economic indicators and talking to community contacts, examiners issue performance ratings. CRA classifies as low-income those geographies having a median family income of less than 50 percent of the area median income, and moderate-income those geographies having a median family income of at least 50 percent and less than 80 percent of the area median income. Finally, a map that includes demographic data could help illustrate certain aspects of the institutions performance context. 0000006228 00000 n If this is the case, the institution should consider adjusting its assessment area(s) to include the areas where significant lending is occurring, consistent with the regulatory requirements.
Do you have a Freedom of Information request? The assessment area will include geographical where the bank has its main office, its branches, any loan production offices, and any deposit-taking ATMs. 0000003367 00000 n Introducing the New York Innovation Center: Delivering a central bank innovation execution. > 2014
The Federal Financial Institutions Examination Council website provides tools to access updated census data.26. Third, assessment areas cannot arbitrarily exclude low- or moderate-income geographies. The New York Fed provides a wide range of payment services for financial institutions and the U.S. government.
The Federal Financial Institution Examination Council (FFIEC) explains asset-size thresholds. 0000010374 00000 n It is therefore important that institutions monitor their assessment areas so they can make necessary adjustments to ensure ongoing compliance with the regulation.
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What tests do examiners perform to evaluate banks regarding the CRA? 0000007104 00000 n What types of financial products and services are CRA qualifying?
212-720-7499 0000008587 00000 n
The Federal Reserve System (FRS), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) evaluate how banks are fulfilling the objectives of the CRA. Also an assessment area may not extend beyond a state boundary unless the assessment area is located in a multistate MSA. This article reviews those requirements, discusses the importance of monitoring changes in assessment areas, notes the benefits of using mapping software, and explains the effect of assessment areas that do not meet the technical requirements of the regulation. 0000009456 00000 n adrian.franco@ny.frb.org, Chelsea Cruz 200 38 Regulation BB sets forth several technical criteria for delineating assessment areas.6 First, the geographic location of assessment areas must consist generally of one or more metropolitan statistical areas (MSAs); metropolitan divisions; or one or more contiguous political subdivisions, such as counties, cities, or towns.7 A political subdivision includes townships and Indian reservations, but it does not include wards, school districts, voting districts, and water districts.8 Assessment areas must include the institutions main office, its branches, and its deposit-taking ATMs, as well as surrounding geographies in which the institution has originated or purchased a substantial portion of its loans.9 However, if an institution asks its regulator to consider affiliate lending in the CRA examination, the geographies within which the affiliates loans have been made do not affect the institutions delineation of its assessment area(s).10, If an institution predominately serves an area smaller than a political subdivision, it may adjust the boundaries of its assessment area to include only the portion of a political subdivision that it can reasonably be expected to serve.11 Adjusting the boundaries of an assessment area may also be appropriate if the assessment area would otherwise be extremely large, of unusual configuration, or divided by significant geographic barriers such as a body of water or a mountain.12. %%EOF hb```f``a`e`Pad@ A+G x00 DK;tN`h "$p10EX,btKlua1!D[E7>LpdRna@ hf] 54# c# 0000160598 00000 n
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Our primary objective is to maintain a safe and competitive U.S. and global banking system.
ZrH6MQe|C_` ?C-]Bx&PavzK$rA2)'Q,k&c.QcjT+4#*9#-e5j=kjNl7O&9Q%M?>8]B/K%$J9/H>Vu$#hz>4De%T0bt V[^.0jh F~kq;x]jdm{1ZA;D-y&$I4~t9d&onDi>+][EN Q How can you learn about banks CRA performance? Assessment areas are a central concept of the CRA regulation. Banks may meet the criteria for CRA consideration in the lending, investment and services tests for offering financial inclusion programs. Which activities may be considered to support community development under CRA? endstream endobj 236 0 obj <>/Filter/FlateDecode/Index[40 160]/Length 27/Size 200/Type/XRef/W[1 1 1]>>stream endstream endobj startxref 0000023212 00000 n Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video. But if the institution begins lending in neighboring D and E counties, it should determine whether its assessment area(s) should be expanded to include these counties, or the MSA containing these counties, to ensure that its assessment area(s) includes geographies where it has originated or purchased a substantial portion of its loans. trailer 0000002872 00000 n
0000003245 00000 n It may also include surrounding geographies in which the bank has originated or purchased a majority of its residential or small business loans.
Video: What Is the Community Reinvestment Act? 0
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Copyright var d = new Date(); document.write(d.getFullYear()); Federal Reserve System. Second, assessment areas must not reflect illegal discrimination.13 For purposes of defining CRA assessment areas, this refers to the practice of excluding geographies from assessment areas on a prohibited basis under the federal fair lending laws. 
0000001890 00000 n Community Development Finance 0000000016 00000 n Upon conclusion of CRA examinations, examiners must prepare a written evaluation of the institution's record of meeting the credit needs of its assessment area. But beginning in 2005, the Bureau began issuing new census data reports every five years. 0000019691 00000 n
Occasionally, however, examiners identify assessment areas that do not meet the regulations technical criteria. 271 0 obj <>stream
The monthly Empire State Manufacturing Survey tracks the sentiment of New York State manufacturing executives regarding business conditions. 0000005449 00000 n
0000008140 00000 n 0000024111 00000 n %PDF-1.5 % The CRA also distinguishes limited-purpose and wholesale institutions. 0000026467 00000 n > First Quarter 2014 Do all banks have the same CRA responsibilities?
0000005992 00000 n Examiners may consider the following factors to determine if this has occurred: Finally, assessment areas must consist of whole geographies and may not extend substantially beyond an MSA boundary or beyond a state boundary unless they are located in a multistate MSA.15 When more than one MSA is combined with another in a combined statistical area (CSA), performance is measured using data at the MSA level not the CSA level.16 If an institution serves areas in a state that are separate and not contiguous, each area should be delineated as a separate assessment area.17 Similarly, if an institution serves an MSA with counties that abut the MSA but are not adjacent to one other (i.e., they extend substantially beyond the MSA), each county would be a separate assessment area.18 However, if the MSA and counties are in the same CSA, they could all be included in the same assessment area, except the data used in measuring CRA performance would not be based on the CSA-level data but on the MSA-level data for the MSA, and at the state, non-MSA levels for the counties.19. 0000007404 00000 n 0000004653 00000 n 0000001731 00000 n The extent of lending in D and E counties would inform this decision. Answer: Senior management should periodically review its assessment area to ensure that it is still reasonable, particularly as the bank experiences growth, either through acquisition or the geographic expansion of its loan volume. Submit comments on the following websites: For banks supervised by the New York Fed, submit comments here. 0000012967 00000 n xref The factors that influence the designation of an assessment area can change over time.
For example, the 2010 census data revealed that 17 percent of the census tracts designated as moderate-income tracts in 2000 changed to middle-income tracts in the 2010 census. For banks supervised by the New York Fed, use this tool. Although an institutions asset size and operations determine which CRA tests are considered, all of the tests measure an institutions performance in its assessment area(s).5 It is therefore critically important that institutions subject to the CRA understand the requirements for delineating assessment areas. 0000009853 00000 n
Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), CRA Performance Context: Why It Is Important for Community Development ad How to Improve It, Understanding Community Development Needs Through the CRA Performance Context, The Effectiveness of the Community Reinvestment Act, Video: The Small Bank and Intermediate Small Bank CRA Examination, Federal Financial Institution Examination Council (FFIEC) Explanation of the Community Reinvestment Act Asset-Size Threshold Change, Interagency Questions and Answers Regarding Community Reinvestment, Healthy Communities: A Framework for Meeting CRA Obligations, Public Evluations for Federal Reserve Bank-Supervised Financial Institutions in the Second District, Interagency Interpretive Letters About CRA Regulations, Closing the Digital Divide: A Framework for Meeting CRA Obligations, The Community Reinvestment Act, Bank Reinvestment, and the Opportunity of Equitable Economic Development in New York City, Small Business Investment Companies: Investment Option for Banks, Engaging Workforce Development: A Framework for Meeting CRA Obligations, How Banks Can Support Workforce Development, Beyond CRA: Meaningful Collaborations between Financial Institutions and Workforce Entities, Leveraging Financial Education to Improve the Impact of Workforce Innovation and Opportunity Act (WIOA), Office of the Comptroller of the Currency, A description of the financial institution, A description of the financial institution's assessment area, Conclusions regarding the financial institution's CRA performance, including the facts, data and analyses that were used to form such conclusions.
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0000006570 00000 n
212-720-7969 0000003095 00000 n Director of Community Development Finance The mission of the Applied Macroeconomics and Econometrics Center (AMEC) is to provide intellectual leadership in the central banking community in the fields of macro and applied econometrics. Third, maps can help determine whether an assessment area is extremely large, has an unusual configuration, or has geographic barriers. The Economic Inequality & Equitable Growth hub is a collection of research, analysis and convenings to help better understand economic inequality. 0000003858 00000 n 237 0 obj <>stream A copy of the public section of the most recent CRA performance evaluation must be placed in a bank's public file.
0000004475 00000 n chelsea.cruz@ny.frb.org, Kellye Jackson All evaluations are customized to reflect the characteristics and asset size of depository institutions. Does the CRA offer credit for workforce development programs?
0000026389 00000 n Because a performance evaluation focuses on an institutions lending, investments, and/or services, examiners will generally not downgrade an institutions CRA rating for violating the technical requirements for designating assessment areas. Learn how to submit it. Answer: A banks assessment area should include the geographies in which the bank has its main office, its branches, and its deposit-taking ATMs, as well as the surrounding geographies in which the bank has originated or purchased a substantial portion of its loans. The ratings are considered when banks request to merge with other financial institutions or plan to expand to other locations. Can you submit comments on banks CRA performance? For example, an institutions lending patterns can change, especially if the institution is growing. 0000019915 00000 n 0000011075 00000 n
200 0 obj <> endobj For banks supervised by the New York Fed, use this tool. 1403 0 obj <> endobj At the New York Fed, our mission is to make the U.S. economy stronger and the financial system more stable for all segments of society. 0
0000025700 00000 n The Federal Financial Institution Examination Council (FFIEC) publishes annual reports on median family income. hb```b``Ke`c`` db@ !V( =.K t1-;c'Lwf4p4a_NE/9f5ov27xFn?sT4\]qX$t6CSGomU9L{$% pd-m+z"9yKg"i:q}AuTv NaE0d4`20&TPPP 7hj( :2p4bld \I ,E Q;H-< A l 0000010236 00000 n 0000003612 00000 n
How can you comment on banks CRA performance? 1451 0 obj <>stream
Does the CRA offer credit for financial inclusion programs? We are connecting emerging solutions with funding in three areashealth, household financial stability, and climateto improve life for underserved communities. We do this by executing monetary policy, providing financial services, supervising banks and conducting research and providing expertise on issues that impact the nation and communities we serve. endstream endobj 1450 0 obj <>/Filter/FlateDecode/Index[75 1328]/Length 55/Size 1403/Type/XRef/W[1 1 1]>>stream
0000004831 00000 n The Center for Microeconomic Data offers wide-ranging data and analysis on the finances and economic expectations of U.S. households. Instead, examiners would designate corrected assessment area(s) to evaluate CRA performance. 0000003983 00000 n 0000007968 00000 n Regulators have added to the definition of community development activities those that incorporate requirements for creating or improving access to workforce development and job training programs for low- and moderate-income or unemployed individuals. 0000238003 00000 n
Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to email this to a friend (Opens in new window). Our economists engage in scholarly research and policy-oriented analysis on a wide range of important issues. 0000001553 00000 n Specific issues and questions should be raised with your primary regulator. Visit the FFIEC Interagency CRA Rating Search tool. Question: Are there limitations on the delineation of an assessment area? 0000003001 00000 n 0000008984 00000 n Sorry, your blog cannot share posts by email. In order to receive credit under the CRA, loans, investments and services made by banks must have a primary purpose that generally improves the circumstances for low- and moderate-income families or individuals as well as stabilizes and/or revitalizes their neighborhoods. The regulation allows institutions to adjust their assessment areas in any of these three circumstances.20. After conducting assessments of banks CRA activities, studying factors such as local demographic and economic indicators and talking to community contacts, examiners issue performance ratings. CRA classifies as low-income those geographies having a median family income of less than 50 percent of the area median income, and moderate-income those geographies having a median family income of at least 50 percent and less than 80 percent of the area median income. Finally, a map that includes demographic data could help illustrate certain aspects of the institutions performance context. 0000006228 00000 n If this is the case, the institution should consider adjusting its assessment area(s) to include the areas where significant lending is occurring, consistent with the regulatory requirements.
Do you have a Freedom of Information request? The assessment area will include geographical where the bank has its main office, its branches, any loan production offices, and any deposit-taking ATMs. 0000003367 00000 n Introducing the New York Innovation Center: Delivering a central bank innovation execution. > 2014
The Federal Financial Institutions Examination Council website provides tools to access updated census data.26. Third, assessment areas cannot arbitrarily exclude low- or moderate-income geographies. The New York Fed provides a wide range of payment services for financial institutions and the U.S. government.
The Federal Financial Institution Examination Council (FFIEC) explains asset-size thresholds. 0000010374 00000 n It is therefore important that institutions monitor their assessment areas so they can make necessary adjustments to ensure ongoing compliance with the regulation.
Xb'0>00(6*0; sTf5C@B,40`b`bL`9ApCjvv)00:03500oX2=I?.~H3 cI
What tests do examiners perform to evaluate banks regarding the CRA? 0000007104 00000 n What types of financial products and services are CRA qualifying?
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The Federal Reserve System (FRS), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) evaluate how banks are fulfilling the objectives of the CRA. Also an assessment area may not extend beyond a state boundary unless the assessment area is located in a multistate MSA. This article reviews those requirements, discusses the importance of monitoring changes in assessment areas, notes the benefits of using mapping software, and explains the effect of assessment areas that do not meet the technical requirements of the regulation. 0000009456 00000 n adrian.franco@ny.frb.org, Chelsea Cruz 200 38 Regulation BB sets forth several technical criteria for delineating assessment areas.6 First, the geographic location of assessment areas must consist generally of one or more metropolitan statistical areas (MSAs); metropolitan divisions; or one or more contiguous political subdivisions, such as counties, cities, or towns.7 A political subdivision includes townships and Indian reservations, but it does not include wards, school districts, voting districts, and water districts.8 Assessment areas must include the institutions main office, its branches, and its deposit-taking ATMs, as well as surrounding geographies in which the institution has originated or purchased a substantial portion of its loans.9 However, if an institution asks its regulator to consider affiliate lending in the CRA examination, the geographies within which the affiliates loans have been made do not affect the institutions delineation of its assessment area(s).10, If an institution predominately serves an area smaller than a political subdivision, it may adjust the boundaries of its assessment area to include only the portion of a political subdivision that it can reasonably be expected to serve.11 Adjusting the boundaries of an assessment area may also be appropriate if the assessment area would otherwise be extremely large, of unusual configuration, or divided by significant geographic barriers such as a body of water or a mountain.12. %%EOF hb```f``a`e`Pad@ A+G x00 DK;tN`h "$p10EX,btKlua1!D[E7>LpdRna@ hf] 54# c# 0000160598 00000 n
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Our primary objective is to maintain a safe and competitive U.S. and global banking system.
ZrH6MQe|C_` ?C-]Bx&PavzK$rA2)'Q,k&c.QcjT+4#*9#-e5j=kjNl7O&9Q%M?>8]B/K%$J9/H>Vu$#hz>4De%T0bt V[^.0jh F~kq;x]jdm{1ZA;D-y&$I4~t9d&onDi>+][EN Q How can you learn about banks CRA performance? Assessment areas are a central concept of the CRA regulation. Banks may meet the criteria for CRA consideration in the lending, investment and services tests for offering financial inclusion programs. Which activities may be considered to support community development under CRA? endstream endobj 236 0 obj <>/Filter/FlateDecode/Index[40 160]/Length 27/Size 200/Type/XRef/W[1 1 1]>>stream endstream endobj startxref 0000023212 00000 n Learn about the history of the New York Fed and central banking in the United States through articles, speeches, photos and video. But if the institution begins lending in neighboring D and E counties, it should determine whether its assessment area(s) should be expanded to include these counties, or the MSA containing these counties, to ensure that its assessment area(s) includes geographies where it has originated or purchased a substantial portion of its loans. trailer 0000002872 00000 n
0000003245 00000 n It may also include surrounding geographies in which the bank has originated or purchased a majority of its residential or small business loans.
Video: What Is the Community Reinvestment Act? 0
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Copyright var d = new Date(); document.write(d.getFullYear()); Federal Reserve System. Second, assessment areas must not reflect illegal discrimination.13 For purposes of defining CRA assessment areas, this refers to the practice of excluding geographies from assessment areas on a prohibited basis under the federal fair lending laws.