§__.22(a)(2) CRA Consideration for Loan Participation Purchases

§__.22(a)(2) – 6

Q: Do institutions receive consideration for purchasing loan participations?

A6. Yes. Examiners will consider the amount of loan participations purchased when evaluating an institution’s record of helping to meet the credit needs of its assessment area(s) through the origination or purchase of specified types of loans, regardless of examination type. As with other loan purchases, examiners will evaluate whether loan participations purchased by an institution, which have been sold and purchased a number of times, artificially inflate CRA performance. See, e.g., Q&A__.21(a) – 1.

 

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

Related Articles

Leave A Comment?

You must be logged in to post a comment.