Comptroller of the Currency
Administrator of National Banks

On January 6, 2009, the Office of the Comptroller of the Currency, along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision (the agencies) published in the Federal Register “Interagency Questions and Answers Regarding Community Reinvestment” (2009 Interagency Questions and Answers) that provide comprehensive guidance regarding the Community Reinvestment Act (CRA) regulations.  These questions and answers supersede all previously published interagency questions and answers.

The 2009 Interagency Questions and Answers adopt nine new questions and answers and make substantive changes to 14 existing questions and answers.  The agencies previously proposed one change that was not adopted.  In addition, the agencies are proposing for comment one new question and answer as well as substantive revisions to two existing questions and answers.  The agencies request comment on these proposed changes by March 9, 2009.

Among other changes, the 2009 Interagency Questions and Answers provide CRA consideration to financial institutions that participate in foreclosure prevention programs that have the objective of providing affordable, sustainable, long-term loan restructurings or modifications for homeowners who are facing foreclosure on their primary residences.  The publication also addresses activities undertaken by a majority-owned financial institution in cooperation with a minority- or women-owned financial institution or a low-income credit union.  In addition, the 2009 Interagency Questions and Answers discuss investments in nationwide community development funds.

The new questions and answers also provide guidance on examining intermediate small banks, clarify CRA reporting requirements, discuss CRA consideration for community development loans, and provide examples of other loan data.  In addition, substantive changes to existing questions and answers include new examples of community development loans, community development services, and qualified investments, as well as clarifications on affiliate lending and assessment area limitations.

The agencies withdrew a proposed change to a question and answer that addressed the evaluation of qualified investments in a fund.  Thus, when evaluating a bank’s qualified investment in a fund, the dollar amount of the qualified investment also will include the dollar amount of legally binding commitments recorded by the institution according to generally accepted accounting principles (GAAP).

Finally, the agencies are proposing a new question and answer that would provide examples of ways an institution could determine that its CRA community services are targeted to low- and moderate-income individuals.  In addition, the agencies are proposing a substantive revision to the question and answer that discusses “primary purpose” under CRA.  The proposed change would allow pro-rata CRA consideration for certain activities related to the provision of mixed-income housing.  The agencies are also proposing a corresponding change to the question and answer that addresses the reporting requirements for loans in the event the proposed change to the primary purpose question and answer is adopted.

Interested parties are encouraged to review the attached 2009 Interagency Questions and Answers.  For more information, contact the Compliance Policy Department at (202) 874-4428 or the Community and Consumer Law Division at (202) 874-5750.