On September 8, 2014 the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency requested comment on proposed revisions to the “Interagency Questions and Answers Regarding Community Reinvestment” (Q&As). The Community Reinvestment Act (CRA) requires each federal financial supervisory agency to assess the record of a financial institution in helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations. The agencies consider that record when reviewing certain licensing applications by an institution. The interagency Q&As provide guidance for use by agency personnel, financial institutions, and the public for the interpretation of the requirements of the agencies’ regulations implementing the CRA.  

The proposed new and revised guidance addresses questions raised by bankers, community organizations and others regarding the agencies’ CRA regulations. 

The proposed new and revised Q&As:

• address alternative systems for delivering retail banking services;

• add examples of innovative or flexible lending practices;

• address community development-related issues by: (1) clarifying guidance on economic development; (2) providing examples of community development loans and activities that are considered to revitalize or stabilize an underserved nonmetropolitan middle-income geography; and (3) clarifying how community development services are evaluated; and

• offer guidance on how examiners evaluate the responsiveness and innovativeness of an institution’s loans, qualified investments and community development services.

 Comments will be due 60 days after publication.

 To view the guidance, click here.