§__.22(b)(2) & (3) Affiliate Lending Consideration in Assessment Areas

§__.22(b)(2) & (3) – 3

Q: Will examiners take into account loans made by affiliates when evaluating the proportion of an institution’s lending in its assessment area(s)?

A3. Examiners will not take into account loans made by affiliates when determining the proportion of an institution’s lending in its assessment area(s), even if the institution elects to have its affiliate lending considered in the remainder of the lending test evaluation. However, examiners may consider an institution’s business strategy of conducting lending through an affiliate in order to determine whether a low proportion of lending in the assessment area(s) should adversely affect the institution’s lending test rating.

 

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

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