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Inactive Financial Institution Letters 

Community Reinvestment Act

June 17, 1999


SUBJECT: 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:

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 effect.

The Q&As adopt 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 area(s).
  • 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 attached list.

Stephen M. Cross

Regional Office Listing (25Kb Microsoft Word file)

Federal Register notice, Vol. 64, No. 84, pages 23618-23648
HTML Format PDF Format (229 Kb - PDF help or hard copy)

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).

Last Updated 07/17/1999

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