How often do federal examiners perform CRA evaluations?



about every 3 yearsabout every 3 years, depending on past performance. Every business quarter, the Federal Deposit Insurance Corporation (FDIC) releases the CRA Examination Schedule by region and lists the information about each bank that is being examined.

Who prepares the CRA performance evaluation?

The OCC prepares a written performance evaluation of the bank’s CRA activities, including the CRA rating, at the end of each CRA evaluation. The written evaluation is available to the public.

What is a CRA performance evaluation?

Each Performance Evaluation includes: The bank’s CRA rating(s) Description of the bank and its community. Conclusions about the bank’s performance. Discussion of the facts and data supporting the conclusions.

What three tests are used to evaluate CRA performance?





Under the regulations that implement CRA, federal regulators grade large banks (those with at least $250 million in assets) on three measures of compliance: lending, investment, and service (see “The Grading System,” p. 3).

How many days must the CRA performance evaluation be included in the CRA Public File?

within 30 business days

A copy of the public section of the bank’s most recent CRA Performance Evaluation (must be added to Public File within 30 business days of receipt).

What is a consequence of a poor CRA rating?

It effectively pauses the bank’s long-term strategy for growth by preventing the banks from opening new branches, merging with another bank or acquiring a bank. It also poses significant reputation risk to the banks since the CRA rating is public.

Is a CRA rating publicly disclosed?





Examination ratings are not made public until 45-60 days after the examination has concluded.

Which CRA test is weighted more heavily?

Performance Levels



*The lending test is weighted more heavily than the investment and service tests when arriving at an overall rating.

What is CRA sunshine?

The CRA Sunshine statute requires certain CRA-related agreements to be publicly disclosed and reported upon annually. The rule defines agreements that are subject to the statute’s disclosure and reporting requirements as “covered agreements.” An agreement is “covered” if it meets all of the following 5 criteria: 1.

What does the CRA investment test look at?

Examples include Mortgage Backed Securities, New Market Tax Credits, tax credits, bonds, equity in projects and more. Even grants, historically a mainstay of CRA Investment Test Compliance, have become more complex tool.

What does an outstanding CRA rating mean?

“Outstanding” An institution in this group has an outstanding record of helping to meet the credit needs of its assessment area, including low- and moderate-income neighborhoods, in a manner consistent with its resources and capabilities.



How often is a lender expected to perform a fair lending analysis on its loans?

every 12-18 months

You should complete a fair lending risk assessment at least every 12-18 months.

How do banks meet CRA requirements?

Banks may meet the criteria for CRA consideration in the lending, investment and services tests for offering financial inclusion programs. Activities that receive consideration include educational programs for low- and moderate-income families or loans and investments that incorporate a financial capability component.

Who has the right to review public CRA?

Each office or branch of a bank must post a notice in its lobby that describes the purpose of the Community Reinvestment Act. This notice also explains that the public has a right to review a bank’s CRA file and to make written comments about the bank’s CRA performance.

What is a CRA compliance officer responsible for?

As a CRA officer, you enforce all provisions of the CRA program and meet with institutions to verify their compliance. Your responsibilities include conducting a review of an institution’s lending and credit policies.



What are CRA requirements?

The CRA requires that each insured depository institution’s record in helping meet the credit needs of its entire community be evaluated periodically by one of the federal bank regulatory agencies (agencies).

Who supervises CRA?

Federal Reserve’s Role



The Federal Reserve supervises state member banks–or, state-chartered banks that have applied for and been accepted to be part of the Federal Reserve System–for CRA compliance.

What does the CRA investment test look at?

Examples include Mortgage Backed Securities, New Market Tax Credits, tax credits, bonds, equity in projects and more. Even grants, historically a mainstay of CRA Investment Test Compliance, have become more complex tool.

What is a CRA assessment area?

Every bank subject to the CRA has a defined assessment area. The assessment area typically encompasses the geographic area that can reasonably be served by each of a bank’s locations, including its main office, any branches, and deposit-taking ATMs.

What is a CRA rating in banking?

Definitions of CRA Ratings. In connection with the assessment of each insured depository institution’s CRA performance, a rating is assigned from the following group: Outstanding record of meeting community credit needs.



What are the 4 Ratings for CRA?

Upon completion of a CRA examination, an overall CRA Rating is assigned using a four-tiered rating system. These ratings are: Outstanding, Satisfactory, Needs to Improve, and Substantial Noncompliance.

How do banks meet CRA requirements?

Banks may meet the criteria for CRA consideration in the lending, investment and services tests for offering financial inclusion programs. Activities that receive consideration include educational programs for low- and moderate-income families or loans and investments that incorporate a financial capability component.