CRA: Other Ways in which banks help meet the needs of the community

This podcast explains that banks can strengthen their CRA exam performance by presenting additional lending activity that examiners may not otherwise consider, beyond the usual focus on small business, small farm, and community development loans. Len Suzio highlights several examples, including technically disqualified small business loans such as asset-based lines of credit, standby letters of credit for contractors, multifamily and small rental property financing reflected in HMDA data, affordable housing units supported by those loans, auto loans that help low-income borrowers access employment, and small business expansion loans that create jobs. The key point is that these activities can help paint a fuller, more favorable picture of how a bank is meeting community credit needs, but to receive consideration, banks must properly geocode the loans, collect relevant data, and ensure the information is reliable.

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