12 C.F.R. § 563e.28 Assigned ratings.
Title 12 - Banks and Banking
(a) Ratings in general. Subject to paragraphs (b), (c), and (d) of this section, the OTS assigns to a savings association a rating of “outstanding,” “satisfactory,” “needs to improve,” or “substantial noncompliance” based on the savings association's performance under the lending, investment and service tests, the community development test, the small savings association performance standards, or an approved strategic plan, as applicable. (b) Lending, investment, and service tests. The OTS assigns a rating for a savings association assessed under the lending, investment, and service tests in accordance with the following principles: (1) A savings association that receives an “outstanding” rating on the lending test receives an assigned rating of at least “satisfactory”; (2) A savings association that receives an “outstanding” rating on both the service test and the investment test and a rating of at least “high satisfactory” on the lending test receives an assigned rating of “outstanding”; and (3) No savings association may receive an assigned rating of “satisfactory” or higher unless it receives a rating of at least “low satisfactory” on the lending test. (c) Effect of evidence of discriminatory or other illegal credit practices. Evidence of discriminatory or other illegal credit practices adversely affects the OTS's evaluation of a savings association's performance. In determining the effect on the savings association's assigned rating, the OTS considers the nature and extent of the evidence, the policies and procedures that the savings association has in place to prevent discriminatory or other illegal credit practices, any corrective action that the savings association has taken or has committed to take, particularly voluntary corrective action resulting from self-assessment, and other relevant information. (d) Savings associations electing alternative weights of lending, investment, and service. A savings association subject to the lending, investment, and service tests may elect alternative weights for lending, service, and investment. The principles in paragraph (b) of this section do not apply to the extent of any inconsistency with the alternative weights selected. [60 FR 22213, May 4, 1995, as amended at 70 FR 10030, Mar. 2, 2005]
Title 12: Banks and Banking
PART 563e—COMMUNITY REINVESTMENT
Subpart B—Standards for Assessing Performance
§ 563e.28 Assigned ratings.
