Q: § __.41(e)(3) – 1: How will examiners determine whether an institution has arbitrarily excluded low- or moderate-income geographies?
A: Examiners will make this determination on a case-by-case basis after considering the facts relevant to the institution’s assessment area delineation. Information that examiners will consider may include
• income levels in the institution’s assessment area(s) and surrounding geographies;
• locations of branches and deposit-taking ATMs;
• loan distribution in the institution’s assessment area(s) and surrounding geographies;
• the institution’s size;
• the institution’s financial condition; and
• the business strategy, corporate structure, and product offerings of the institution.
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