§__.12(n) Narrow Product Line Clarification for Limited Purpose Institution

§__.12(n) – 1

Q: What constitutes a “narrow product line” in the definition of “limited purpose institution”?

A1. An institution offers a narrow product line by limiting its lending activities to a product line other than a traditional retail product line required to be evaluated under the lending test (i.e., home mortgage, small business, and small farm loans). Thus, an institution engaged only in making credit card or motor vehicle loans offers a narrow product line, while an institution limiting its lending activities to home mortgages is not offering a narrow product line.


Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016

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