The federal banking agencies published final new and revised Community Reinvestment Act questions and answers that, among other things, encourage banks to set up foreclosure prevention programs for low- and moderate-income homeowners for CRA credit. The Q&A guidance also addresses activities financial institutions can undertake in concert with minority- or women-owned financial institutions or low-income credit unions that would receive favorable CRA consideration. In addition, the agencies proposed one new Q&A and two revised ones. The proposed new Q&A would provide examples of how to determine if a community service is targeted to low- and moderate-income individuals. The two revised Q&As concern allowing pro rata CRA consideration in certain circumstances for an activity that provides affordable housing aimed at low- or moderate-income individuals. The comment deadline for the proposed Q&As is March 9, 2009. Click here for the guidance.
Alert January 13, 2009