Joint Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Office of Thrift Supervision
For immediate release January 6, 2009
Issuance of Final Interagency Questions and Answers
on Community Reinvestment
WASHINGTON — The federal financial institution regulatory agencies today announced
the publication of new and revised Interagency Questions and Answers Regarding
Community Reinvestment that, among other things, encourage financial institutions to
take steps to help prevent home mortgage foreclosures.
The Questions and Answers interpret the agencies’ Community Reinvestment Act
(CRA) regulations and provide guidance to financial institutions and the public. The
agencies proposed the Questions and Answers on July 11, 2007. After considering the
comments, the agencies adopted the majority of the Questions and Answers as they
were proposed or with revisions in response to the comments.
Based on the comments received, the agencies are now finalizing nine new questions
and answers and making substantive changes to 14 existing questions and answers
proposed in 2007. The new and revised Questions and Answers encourage financial
institutions to participate in foreclosure prevention programs that have the objective of
providing affordable, sustainable, long-term loan restructurings or modifications for
homeowners who are facing foreclosure on their primary residences. The Questions
and Answers also address activities undertaken by a majority-owned financial institution
in cooperation with a minority- or women-owned financial institution or a low-income
credit union.
In response to comments received on the proposed Questions and Answers, the
agencies revised one question and answer that addresses financial institution
investments in nationwide community development funds. The revised question and
answer notes that these funds are important sources of investments for low- and
moderate-income and underserved communities throughout the country and can be an
efficient vehicle for institutions in making qualified investments that help meet
community development needs. It also provides that the agencies will consider whether
the purpose, mandate, or function of the fund includes serving geographies or
individuals located within the institution’s assessment area(s) or a broader statewide or
regional area that includes the institution’s assessment area(s). Typically, such
information will be found in the fund’s prospectus, but may be contained in other fund
documents provided by the institution, at its option, in connection with its CRA
evaluation.
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Office of Thrift Supervision
For immediate release January 6, 2009
Issuance of Final Interagency Questions and Answers
on Community Reinvestment
WASHINGTON — The federal financial institution regulatory agencies today announced
the publication of new and revised Interagency Questions and Answers Regarding
Community Reinvestment that, among other things, encourage financial institutions to
take steps to help prevent home mortgage foreclosures.
The Questions and Answers interpret the agencies’ Community Reinvestment Act
(CRA) regulations and provide guidance to financial institutions and the public. The
agencies proposed the Questions and Answers on July 11, 2007. After considering the
comments, the agencies adopted the majority of the Questions and Answers as they
were proposed or with revisions in response to the comments.
Based on the comments received, the agencies are now finalizing nine new questions
and answers and making substantive changes to 14 existing questions and answers
proposed in 2007. The new and revised Questions and Answers encourage financial
institutions to participate in foreclosure prevention programs that have the objective of
providing affordable, sustainable, long-term loan restructurings or modifications for
homeowners who are facing foreclosure on their primary residences. The Questions
and Answers also address activities undertaken by a majority-owned financial institution
in cooperation with a minority- or women-owned financial institution or a low-income
credit union.
In response to comments received on the proposed Questions and Answers, the
agencies revised one question and answer that addresses financial institution
investments in nationwide community development funds. The revised question and
answer notes that these funds are important sources of investments for low- and
moderate-income and underserved communities throughout the country and can be an
efficient vehicle for institutions in making qualified investments that help meet
community development needs. It also provides that the agencies will consider whether
the purpose, mandate, or function of the fund includes serving geographies or
individuals located within the institution’s assessment area(s) or a broader statewide or
regional area that includes the institution’s assessment area(s). Typically, such
information will be found in the fund’s prospectus, but may be contained in other fund
documents provided by the institution, at its option, in connection with its CRA
evaluation.
Also in response to comments received, the agencies have withdrawn proposed
revisions to a previously existing question and answer about legally binding
commitments to invest in funds with a primary purpose of community development.
When evaluating a financial institution, examiners will continue to review both new and
outstanding investments and include in the dollar amount of qualified investments the
full dollar amount of any legally binding commitments recorded by the institution
according to Generally Accepted Accounting Principles (GAAP).
In addition, the Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, and Office of Thrift Supervision are proposing for
comment one new and two revised questions and answers. The revisions to the two
existing questions and answers would allow pro rata consideration in certain
circumstances for an activity that provides affordable housing targeted to low- or
moderate-income individuals. The proposed new question and answer would provide
examples of how an institution can determine that community services it provides are
targeted to low- and moderate-income individuals. The agencies invite public comment
on these proposed new and revised questions and answers.
The final Questions and Answers will be published in the Federal Register today.
Comments on the proposed provisions are due by March 9, 2009.
The Questions and Answers were first published under the auspices of the Federal
Financial Institution Examination Council (FFIEC) in 1996, and were revised on July 12,
2001. The Questions and Answers issued today consolidate and supersede all
previously published Interagency Questions and Answers.
For more information on the CRA, including these Questions and Answers and the
agencies’ CRA regulations, visit the FFIEC website at: http://www.ffiec.gov/cra.
# # #
Attachment:
FR Notice for final rule 268K(PDF Help)
Media Contacts:
Federal Reserve Susan Stawick (202) 452-2955
FDIC David Barr 202-898-6992
OCC Dean DeBuck 202-874-5770
OTS Janet Frank (202) 906-6677
(FDIC: PR-3-2009)
revisions to a previously existing question and answer about legally binding
commitments to invest in funds with a primary purpose of community development.
When evaluating a financial institution, examiners will continue to review both new and
outstanding investments and include in the dollar amount of qualified investments the
full dollar amount of any legally binding commitments recorded by the institution
according to Generally Accepted Accounting Principles (GAAP).
In addition, the Federal Reserve Board, Federal Deposit Insurance Corporation, Office
of the Comptroller of the Currency, and Office of Thrift Supervision are proposing for
comment one new and two revised questions and answers. The revisions to the two
existing questions and answers would allow pro rata consideration in certain
circumstances for an activity that provides affordable housing targeted to low- or
moderate-income individuals. The proposed new question and answer would provide
examples of how an institution can determine that community services it provides are
targeted to low- and moderate-income individuals. The agencies invite public comment
on these proposed new and revised questions and answers.
The final Questions and Answers will be published in the Federal Register today.
Comments on the proposed provisions are due by March 9, 2009.
The Questions and Answers were first published under the auspices of the Federal
Financial Institution Examination Council (FFIEC) in 1996, and were revised on July 12,
2001. The Questions and Answers issued today consolidate and supersede all
previously published Interagency Questions and Answers.
For more information on the CRA, including these Questions and Answers and the
agencies’ CRA regulations, visit the FFIEC website at: http://www.ffiec.gov/cra.
# # #
Attachment:
FR Notice for final rule 268K(PDF Help)
Media Contacts:
Federal Reserve Susan Stawick (202) 452-2955
FDIC David Barr 202-898-6992
OCC Dean DeBuck 202-874-5770
OTS Janet Frank (202) 906-6677
(FDIC: PR-3-2009)