FRB: Consumer Affairs Letter CA 10 - 2 - Revised Interagency Questions and Answers on Community Reinvestment

SUBJECT: Revised Interagency Questions and Answers on Community Reinvestment

The Federal Reserve, along with the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision (Agencies) recently approved the publication of new and revised Interagency Questions and Answers Regarding Community Reinvestment (Questions and Answers). This version of the Questions and Answers, which consolidates and supersedes all previously published versions, can be found at http://www.ffiec.gov/cra.

The Questions and Answers interpret the Agencies' Community Reinvestment Act (CRA) regulations and provide guidance to financial institutions and the public. The Agencies proposed the new and revised Questions and Answers on January 6, 2009. After considering comments received on the proposal, the Agencies adopted, with minor clarifications, one new and two revised questions and answers. In addition, the Agencies also made a conforming revision to one other question and answer.

The new question and answer provides examples of ways an institution could determine that its community services are targeted to low- and moderate-income individuals. The revision to the question and answer that discusses "primary purpose" now allows pro-rata consideration for providing affordable housing for low- and moderate-income individuals through mixed-income housing. The Agencies also revised the question and answer on reporting requirements for community development loans and made a conforming change to the question and answer that provides examples of "other loan data."

If you have any questions, please contact Cathy Gates, Senior Project Manager, (202) 452-3946 or Paul Robin, Manager, Oversight and Policy at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs