The Board evaluates a financial institution's branch availability and services in the facility-centered evaluation space according to the following:
The Board considers the loans, investments, products and services, and items of affiliate marketers of a financial institution that are not functions subsidiaries, at the bank's possibility, subject matter to the following:
(ii) The retail banking solutions and retail banking solutions demands of its facility-dependent evaluation areas and at the institution stage that are protected through the strategy.
(1) Data indicating that a financial institution ordered closed-close household property finance loan loans, compact business enterprise loans, small farm loans, or automobile loans for the only or Key intent of inappropriately improving its retail lending overall performance, which include, although not restricted to, data indicating subsequent resale of these types of loans or any indicator that these loans have been regarded as in several depository establishments' CRA evaluations, through which scenario the Board won't take into consideration these kinds of loans while in the bank's effectiveness evaluation;
The CRA which element usually do not need a lender to originate or buy loans or investments or to deliver expert services which are inconsistent with Secure and audio banking practices, like underwriting expectations.
If a bank opts being evaluated pursuant into the Retail Lending Test, the Board assigns conclusions to the financial institution's Retail Lending Exam performance as furnished in appendix C to this component. In assigning conclusions for a small bank, the Board might take into consideration functionality context facts as furnished in § 228.21(d).
The Retail Lending Test evaluates a bank's report of assisting to fulfill the credit score wants of its complete Neighborhood from the lender's origination and buy of auto loans When the bank is actually a the greater part automobile lender.
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(B) For each of the lender's facility-primarily based evaluation regions inside a nonmetropolitan area, the Nonmetropolitan Nationwide Neighborhood Progress Funding Benchmark measures the dollar volume of Group development loans and Local community enhancement investments that benefit or provide nonmetropolitan places during the nationwide area for all substantial depository establishments when compared to deposits situated in nonmetropolitan locations while in the nationwide space for all substantial depository establishments.
In Every single applicable Retail Lending Examination Spot, the Board evaluates originated and bought loans in Each individual of the next product traces That could be a important product or service line, as explained in paragraph (d)(2) of the segment:
The Board prices the functionality of an intermediate financial institution evaluated below this part as provided in appendix D to this component.
Over the expression of a approach, a financial institution should post on the Board for approval an Modification to its strategy if a cloth improve in situation:
(1) Info indicating that a lender ordered shut-stop house home loan loans, small small business loans, tiny farm loans, or auto loans for the only or primary function of inappropriately boosting its retail lending effectiveness, such as, but not limited to, information indicating subsequent resale of these types of loans or any indication that these types of loans are regarded as in many depository institutions' CRA click here evaluations, during which circumstance the Board doesn't look at such loans inside the financial institution's overall performance evaluation;
In the course of the phrase of a approach, a financial institution may well ask for the Board to approve an Modification to the approach during the absence of a fabric modify in circumstances.