§__.22(d) Community Development Loans Held in Common

§__.22(d) – 3

Q: In some circumstances, an institution may invest in a third party, such as a community development bank, that is also an insured depository institution and is thus subject to CRA requirements. If the investing institutions requests its supervisory Agency to consider its pro rata share of community development loans made by the third party, as allowed under 12 CFR  .22(d), may the third party also receive consideration for these loans?

A3. Yes, regardless of examination type, as long as the financial institution and the third party are not affiliates. The regulations state, at 12 CFR .22(c)(2)(i), that two affiliates may not both claim the same loan origination or loan purchase. However, if the financial institution and the third party are not affiliates, the third party may receive consideration for the community development loans it originates, and the financial institution that invested in the third party may also receive consideration for its pro rata share of the same community development loans under 12 CFR__.22(d).

 

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

Last modified April 28, 2023