FRB FAQs-When reporting revenue for CRA data, are the terms co-borrower, guarantor, and co-signer used interchangeably when determining whether to include revenue?

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Q:  When reporting revenue for CRA data, are the terms co-borrower, guarantor, and co-signer used interchangeably when determining whether to include revenue?

A:  Q&A ___.42(a)(4)-1 (page 11669 of the Federal Register notice ) discusses the revenue to be included in determining whether a small business borrower had gross annual revenues of $1 million or less. Generally, an institution should rely on the revenues that it considered in making its credit decision. The Q&A provides specific examples with affiliated business relationships. The Q&A further clarifies that revenue or income relied on from cosigners or guarantors that are not affiliates of the borrower should not be factored into the revenue determination.
 

This can be found in - CRA FAQ#5 of the FAQs.  The Federal Reserve Board FAQs can be found at: https://consumercomplianceoutlook.org/2011/second-quarter/hmda-and-cra-data-reporting/

 

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