The Community Reinvestment Act (CRA), enacted by Congress in 1977, is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including the needs of low- and moderate-income people.
The term low and moderate income (LMI) is defined by the Federal Reserve Board in Regulation BB, Community Reinvestment, and includes people and communities whose income is less than 80 percent of the area median income. According to the regulation, low income means an individual income that is less than 50 percent of the area median income, or a median family income that is less than 50 percent, in the case of a geography. Moderate income means an individual income that is at least 50 percent and less than 80 percent of the area median income, or a median family income that is at least 50 and less than 80 percent, in the case of a geography.*
A market share summary report is available through the Summary of Deposits section of the FDIC's website. This report allows the user to determine the deposit market share for each financial institution within any user-defined geographic area. The deposits are based on the branch/office deposits for all FDIC-insured institutions as reported on the annual Summary of Deposit survey for FDIC-insured institutions as of June 30. To obtain a market share report for a specific area, click on the link above. Within the site, select the geographic area and the market share report.
Users can access reports for specific institutions through the FDIC Institution Directory (ID) on the FDIC's website. This directory provides the latest comprehensive financial and demographic data for every FDIC-insured institution, including the most recent quarterly financial statements, with performance and condition ratios. To access a report for an institution, click on the link above. Within the site, select “find institutions” and enter the name or FDIC certificate number for an institution.
Users can also access reports on specific institutions through the National Information Center (NIC) on the Federal Financial Institutions Examination Council's (FFIEC) website. NIC is a central repository of data about banks and other institutions in which the Federal Reserve has a supervisory, regulatory, or research interest, including both domestic and foreign banking organizations operating in the United States. Within the website, select the “Institution Search” to obtain information for both current and noncurrent institutions by name and location and select the “FBO Search” to obtain information for U.S. branches and agencies of foreign banking organizations (FBOs).
An important source of information about financial institutions' lending patterns in a community is the Home Mortgage Disclosure Act (HMDA) statement. This report is submitted annually to the Federal Financial Institutions Examination Council (FFIEC) and is available to the public for each reporting institution. The types of loans that must be reported are home-purchase loans, for both owner-occupants and nonoccupants; refinancings; home-improvement loans; and loans for improvement and/or purchase of multifamily structures (five or more units). Depository institutions that had at least $36 million in assets on December 31, 2006, in the home or branch office in an MSA must file this report.
Additional information regarding HMDA-reported loan statements is available through the FFIEC's website. Through this website, you can access aggregate HMDA reports at the MSA or national level. You can also obtain a disclosure report for a specific institution.
The following information was developed from aggregated HMDA statements. The tables include all HMDA-reported loans (home purchase, home improvement, refinancing, and multi-family).
Please note that some of the lending institutions listed in the HMDA tables are not depository institutions insured by the FDIC and summary reports for these institutions are not available on the FDIC or NIC websites. More information about these lending institutions can be obtained using a search engine such as Yahoo or Google.
Starting in 1996, the nation's financial institutions began reporting small-business and small-farm loans as part of their CRA disclosure statements required under the revised CRA regulations. While the information does not have the level of detail of the HMDA statements, it is an important source for understanding commercial lending activity in a community. The types of loans reported include all originations and purchases of commercial loans, lines of credit, and mortgages on nonresidential properties equal to or less than $1 million in size. The loans are reported by size, by geographic location, and for borrowers with annual revenues of $1 million or less. These categories of loans include those with guarantees, such as those provided by the SBA or USDA. Small-farm loans are reported in the same way.
Additional information regarding CRA disclosure statements is available through the Federal Financial Institutions Examination Council's (FFIEC) website. Through this website, you can access aggregate CRA reports at the county, MSA, or national level. You can also obtain a disclosure report for a specific institution and review its CRA rating.
The following information was developed from aggregated CRA disclosure statements. The tables show the reporters’ market share by the number of loans and total dollars originated. They include only originated loans under $1 million, since loan applications and loans greater than $1 million are not reported.