Revised, New and Proposed Interagency Questions and
Answers Regarding Community Reinvestment
In response to questions from the banking industry, the Federal Financial Institutions
Examination Council (FFIEC) published the attached "Interagency Questions and Answers
Regarding Community Reinvestment" (Q&As)on May 3, 1999, in the Federal
Register. The document also is available on the FFIEC's Web site at: http://www.ffiec.gov/cra/qnadoc.htm.
These interagency Q&As have been prepared by the staff of the Federal Deposit
Insurance Corporation (FDIC), the Federal Reserve Board, the Office of the Comptroller of
the Currency, and the Office of Thrift Supervision for agency personnel, financial
institutions and the public. This version supplements and amends the Q&As published by
the FFIEC on October 6, 1997. As with the prior version of the Q&As,this
document incorporates all previously issued questions and answers that are still in
The Q&Asadopt four questions and answers proposed in the October 1997
publication regarding loans, investments, or services that have a "primary
purpose" of community development. In addition, the document includes 13 new, seven
revised, and three proposed questions and answers. These questions and answers, except for
the three new proposals, became effective on May 3, 1999. The three proposed questions and
answers address the following issues:
Whether there must be some immediate or direct benefit to
the institution assessment area(s) to satisfy the regulations requirement that qualified
investments and community development loans or services benefit an institution's
assessment area(s) or broader statewide or regional area that includes the assessment
Whether an institution may receive consideration under the investment test for
mortgage-backed securities backed by home mortgages that were originated or purchased by
the same institutions.
Whether renewals and refinancings of small business and small farm loans should be
collected and reported.
We invite public comment on the three proposed questions and answers, any of the new
and revised questions and answers, and any other community reinvestment issues not
addressed in the document. Comments on the proposed questions and answers should be
submitted by July 2, 1999. Written comments should be sent to Keith Todd, Executive
Secretary, FFIEC, 2000 K Street NW, Suite 310, Washington, DC 20006, or by facsimile
transmission to (202) 872-7501.
For additional information, please contact Robert W. Mooney, Senior Fair Lending
Specialist in the FDIC's Division of Compliance and Consumer Affairs, on (202) 942-3378;
or A. Ann Johnson, Counsel in the FDIC's Legal Division, on (202) 898-3573. You also may
contact your FDIC Division of Compliance and Consumer Affairs Regional Office on the
Distribution: FDIC-Supervised Banks (Commercial and Savings)
NOTE: Paper copies of FDIC financial institutions letters may be obtained through the
FDIC's Public Information Center, 801 17th Street, NW, Room100, Washington, DC
20434 (800-276-6003 or (703) 562-2200).