N.Y. Comp. Codes R. & Regs. tit. 3 § 76.5

Current through Register Vol. 46, No. 53, December 31, 2024

Section 76.5 - Community reinvestment act assessments; public disclosure

(a) From time to time, as determined by the superintendent, the Banking Department will conduct community reinvestment evaluations of each banking institution to which this Part applies. To the extent feasible, such evaluations will occur with the same frequency as, and coincide with, CRA examinations conducted by a banking institution's primary Federal regulator. In general, the Banking Department will evaluate the CRA performance of a banking institution once every 24 to 36 months; except that banking institutions with total assets below $250 million and rated "satisfactory" or "outstanding" in their most recent CRA examination performed by the Banking Department generally will be examined once every 48 to 60 months, respectively. The assessment will be based upon information compiled by the Banking Department or obtained from other sources, including information obtained from other State and Federal banking regulators. This information will pertain to the factors set forth in section 28-b of the Banking Law and the performance tests and standards set forth in section 76.7 of this Part. The Banking Department assigns a rating for a banking institution assessed under the factors set forth in Banking Law, section 28-b and the tests set forth in section 76.7 of this Part. The lending, investment and service performance for each banking institution evaluated under section 76.7(a)(1) of this Part shall be assigned one of the five following ratings: outstanding, high satisfactory, low satisfactory, needs to improve or substantial noncompliance. A banking institution's performance need not fit each aspect of a particular rating profile in order to receive that rating, and exceptionally strong performance with respect to some aspects may compensate for weak performance in others. The banking institution's overall performance, however, must be consistent with safe and sound banking practices and generally with the appropriate rating profile. The Banking Department assessment shall form the basis of the biennial numerical CRA rating based on a 1-4 scoring system assigned to each such institution by the Banking Department. Specifically, such numerical scores shall represent performance assessments as follows:

-outstanding record of meeting community credit needs ("Outstanding" or "1");

-satisfactory record of meeting community credit needs ("Satisfactory" or "2");

-needs to improve record of meeting community credit needs ("Needs to Improve" or "3"); and

-substantial noncompliance in meeting community credit needs ("Substantial Noncompliance" or "4").

(b) Evidence of discriminatory or other illegal credit practices.

(1) The Banking Department's evaluation of a banking institution's CRA performance is adversely affected by evidence of discriminatory or other illegal credit practices in any geography by the banking institution or in any assessment area by any affiliate whose loans have been considered as part of the banking institution's lending performance. In connection with any type of lending activity described in section 76.8(a) of this Part, evidence of discriminatory or other credit practices that violate an applicable law, rule or regulation includes, but is not limited to:

(i) discrimination against applicants on a prohibited basis in violation, for example, of section 296-a of the New York State Executive Law, the Equal Credit Opportunity Act or the Fair Housing Act;

(ii) violations of either section 6-l of the Banking Law or the Home Ownership and Equity Protection Act;

(iii) violations of section 5 of the Federal Trade Commission Act;

(iv) violations of section 8 of the Real Estate Settlement Procedures Act; and

(v) violations of the Truth in Lending Act provisions regarding a consumer's right of rescission.

(2) In determining the effect of evidence of practices described in paragraph (1) of this subdivision on the banking institution's assigned rating, the Banking Department considers the nature, extent, and strength of the evidence of the practices; the policies and procedures that the banking institution (or affiliate, as applicable) has in place to prevent the practices; any corrective action that the banking institution (or affiliate, as applicable) has taken or has committed to take, including voluntary corrective action resulting from self-assessment; and other relevant information.

(c) The Banking Department will prepare a written summary of the results of such assessment. The CRA rating and the written summary will be made available to the public. In addition, each banking institution shall include a copy of such rating and the three most recent summaries in the banking institution's public file as required to be maintained by Federal CRA regulations.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 76.5