§__.41(e)(3) Arbitrary Exclusion of LMI Geographies in an Assessment Area

§__.41(e)(3) – 1

Q: How will examiners determine whether an institution has arbitrarily excluded low- or moderate-income geographies?

A1. Examiners will make this determination on a case-by-case basis after considering the facts relevant to the institution’s assessment area delineation. Information that examiners will consider may include

  • income levels in the institution’s assessment area(s) and surrounding geographies;
  • locations of branches and deposit-taking ATMs;
  • loan distribution in the institution’s assessment area(s) and surrounding geographies;
  • the institution’s size;
  • the institution’s financial condition; and
  • the business strategy, corporate structure, and product offerings of the institution.

 

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

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