12 C.F.R. § 944.3 Community support standards.
Title 12 - Banks and Banking
(a) In general. In reviewing a community support statement, the Finance Board shall take into account a member's performance under the CRA if the member is subject to the requirements of the CRA, and the member's record of lending to first-time homebuyers. (b) CRA standard—(1) Adequate performance. A member that is subject to the requirements of the CRA shall be deemed to meet the CRA standard if the rating in the member's most recent CRA evaluation is “outstanding” or “satisfactory.” (2) Probationary performance. A member that is subject to the requirements of the CRA shall be subject to a probationary period if the rating in the member's most recent CRA evaluation is “needs to improve.” The probationary period shall extend until the member's appropriate Federal banking agency completes its next CRA evaluation and issues a rating. The member will be eligible to receive long-term advances during the probationary period. If the member does not meet the CRA standard at the end of the probationary period, the Finance Board shall restrict the member's access to long-term advances in accordance with §944.5. (3) Inadequate performance. A member's access to long-term advances shall be restricted in accordance with §944.5 if the rating in the member's most recent CRA evaluation is “substantial noncompliance.” (c) First-time homebuyer standard—(1) Adequate performance. In the absence of public comments or other information to the contrary, a member shall be presumed to meet the first-time homebuyer standard if the member is subject to the requirements of the CRA and the rating in the member's most recent CRA evaluation is “outstanding.” In determining whether other members meet the first-time homebuyer standard, the Finance Board shall consider a member's description of its efforts to assist first-time or potential first-time homebuyers or its explanation of factors that affect its ability to assist first-time or potential first-time homebuyers. A member shall be deemed to meet the first-time homebuyer standard if the member otherwise demonstrates to the satisfaction of the Finance Board that it: (i) Has an established record of lending to first-time homebuyers; (ii) Has a program whereby it actively seeks to lend or support lending to first-time homebuyers, including, but not limited to, the following: (A) Providing special credit products with flexible underwriting standards for first-time homebuyers; (B) Participating in federal, state, or local government, or nationwide homeownership lending programs that benefit, serve, or are targeted to, first-time homebuyers; or (C) Participating in loan consortia for first-time homebuyer loans or loans that serve predominantly low- or moderate-income borrowers; (iii) Has a program whereby it actively seeks to assist or support organizations that assist potential first-time homebuyers to qualify for mortgage loans, including, but not limited to, the following: (A) Providing, participating in, or supporting special counseling programs or other homeownership education activities that benefit, serve, or are targeted to, first-time homebuyers; (B) Providing or participating in marketing plans and related outreach programs targeted to first-time homebuyers; (C) Providing technical assistance of financial support to organizations that assist first-time homebuyers; (D) Participating with or financially supporting community or nonprofit groups that assist first-time homebuyers; (E) Holding investments or making loans that support first-time homebuyer programs; (F) Holding mortgage-backed securities that may include a pool of loans to low- and moderate-income homebuyers; (G) Participating or investing in service organizations that assist credit unions in providing mortgages; or (H) Participating in Bank targeted community lending programs; or (iv) Has any combination of the elements described in paragraphs (c)(1)(i), (ii), or (iii) of this section. (2) Probationary performance. If the evidence of first-time homebuyer performance is deemed to be unsatisfactory by the Finance Board, the member shall be subject to a one-year probationary period. The member will be eligible to receive long-term advances during the probationary period. If the member does not demonstrate compliance with the first-time homebuyer standard before the probationary period ends, the Finance Board shall restrict the member's access to long-term advances in accordance with §944.5. (3) Inadequate performance. A member's access to long-term advances shall be restricted in accordance with §944.5 if the member provides no evidence of first-time homebuyer performance. [62 FR 28988, May 29, 1997, as amended at 65 FR 5739, Feb. 7, 2000; 65 FR 8262, Feb. 18, 2000; 65 FR 44428, July 18, 2000; 67 FR 12850, Mar. 20, 2002; 70 FR 9510, Feb. 28, 2005]
Title 12: Banks and Banking
PART 944—COMMUNITY SUPPORT REQUIREMENTS
§ 944.3 Community support standards.
