DSNews The homepage of the servicing industry
The Office of the Comptroller of the Currency recently released a list of Community Reinvestment Act (CRA) performance evaluations that became public last month. Of the 20 bank evaluations made public, two of them were rated “outstanding” while the other 18 were rated “satisfactory.”
The list includes evaluations that became public during the month of January 2017 and includes national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings, according to the OCC.
The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.
HSBC Trust Company and United Community Bank of Lawrenceburg, Indiana were rated as “outstanding.” None of the entities received ratings of “needs to improve” or “substantial noncompliance.”
The Community Reinvestment Act designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. The Act prohibits the denying or increasing the cost of banking to residents of racially defined neighborhoods, better known as redlining, according to the OCC’s website.
The Act instructs the appropriate federal financial supervisory agencies to encourage regulated financial institutions to help meet the credit needs of the local communities in which they are chartered, consistent with safe and sound operation. To enforce the statute, federal regulatory agencies examine banking institutions for CRA compliance, and take this information into consideration when approving applications for new bank branches or for mergers or acquisitions.
For a list of all of the entities whose ratings were made public this month, click here. A searchable list of all public CRA evaluations can be accessed through the OCC's website by clicking here.
