Q: § __.12(x) – 1: What factors will the Agencies consider in determining whether an institution is in the business of extending home mortgage, small business, small farm, or consumer loans to retail customers?
A: The Agencies will consider whether
• the institution holds itself out to the retail public as providing such loans.
• the institution’s revenues from extending such loans are significant when compared to its overall operations, including off-balance sheet activities.
A wholesale institution may make some retail loans without losing its wholesale designation as described above in Q&A § __.12(n) – 2.
This Interagency Q&A, and others, was released in July 2016.
The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately. They may be found here: http://www.ffiec.gov/cra/qnadoc.htm