New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 76 - Compliance With Community Reinvestment Act Requirements › Section 76.5 - Community reinvestment act assessments; public disclosure

Current through Register Vol. 46, No. 28, July 10, 2024
(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.