Prep Community Reinvestment Act (CRA) Exam Questions & Answers 2024
5 views 0 purchase
Course
Prep Community Reinvestment Act
Institution
Prep Community Reinvestment Act
Prep Community Reinvestment Act (CRA) Exam Questions & Answers 2024
Purpose and Coverage - ANSWERSCRA is designed to encourage banks to meet the needs of their communities, including low and moderate income (LMI) groups.
CRA covers all institutions governed by FDIC.
CRA Tests - ANSWERSTh...
Prep Community Reinvestment Act
(CRA) Exam Questions & Answers 2024
Purpose and Coverage - ANSWERSCRA is designed to encourage banks to meet the needs of their
communities, including low and moderate income (LMI) groups.
CRA covers all institutions governed by FDIC.
CRA Tests - ANSWERSThree ways to meet LMI groups:
1. Lending
2. Investment
3. Service
The rating scheme for CRA evaluations is:
1. Outstanding
2. Satisfactory
3. Needs to Improve
4. Substantial Non-Compliance
Three Sizes of Banks:
1. Small Banks: as of December 31 of either of the prior two years, has assets of less than $313 million
2. Intermediate Banks: Assets between $313 million and $1.252 billion
3. Large Banks.
CRA Assessment Area - ANSWERS1. One or more Metropolitan Statistical Areas (MSA), metropolitan
divisions, or one or more contiguous political subdivision.
, 2. Must include geographies in which the bank has the main office, branches and deposit taking ATMs.
3. Include surrounding areas where the bank has originated a substantial portion of its loans.
CRA Assessment Area - Limitations - ANSWERS1. The area must consist of whole geographies (census
tracts).
2. Cannot reflect illegal discrimination.
3. Cannot arbitrarily exclude LMI.
4. Cannot extend substantially beyond the MSA or state boundaries (unless the bank does substantial
business in those surrounding areas)
5. Must be an assessment area for each state where the bank does business.
CRA Loan Data Reported - Small Business Loans - ANSWERS1. Loans of $1 million or less to a business.
a. The size of the business DOES NOT matter.
b. The size of the LOAN drives the reporting requirement.
2. Report loans separately if secured by
a. owner occupied, non-farm, non-residential property.
b. other non-farm, non-residential property.
3. Commercial and industrial loans to US addresses.
CRA Loan Data Reported - Small Farm Loans - ANSWERS1. Loans of $500,000 or less.
a. the size of the farm is irrelevant.
b. the size of the loan drives reporting.
2. Report loans separately if secured by Farmland.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.