CRA Public File
This video talks about what must be included in a CRA public file including special requirements for HMDA reporters.
Video Transcript
The following is a transcript of video.
Today's topic is looking at the contents of a CRA public file.
The Community Reinvestment Act, or CRA, requires a public file that has to have several things in it and your examiners are going to look at this public file to make sure it is complete each time you have a CRA evaluation, which occurs approximately every 5 years or so. In the public file, you have to have a public file, first of all, at the main office. This is where your main public file is. And you also have to have a main public file at one branch in each state if you're in multiple states. You also have to have a public file at each branch but you can have an abbreviated version at each branch. So basically you have a main file in the main office, in one branch in each state as well as an abbreviated file in each branch. So that's where it's located.
In the public file, we have to have several different things. The first thing we have to have in the CRA public file is all written comments received from the public for the current and each of the prior two calendar years. So we have to have public comments. Specifically, these comments need to include information that relates to the bank's performance and helping to meet community credit needs. So if there's a complaint on deposit accounts, you don't need to include that in your public file. They're looking specifically for information that relates to the bank's performance and helping to meet the community credit needs. Also comments by the bank, if you reply to any of those, must be included in that public file. And comments must also protect the reputation of those who made the comment. So if it would reflect their name or their reputation, you need to mark out their name and protect it in that way.
The second thing included in the public file is a copy of the public section of the most recent CRA performance evaluation. Basically, this is your exam report. The public portion of your CRA exam report must go in the file and the copy must be in your public file within 30 business days after receipt. So it is important for you to tell management that when they receive the exam report you need a copy of that file so you can put it in your public file.
The third thing needed in a CRA public file is a list of the bank's branches. You would think that this is simple but you do need the branches but you need a couple of things to go with the list of branches. You need your addresses which are the street addresses and geographies. Now, by geographies, the Community Reinvestment Act specifically refers to geographies as census tracts. That is key. You don't list the actual latitude and longitude which I have seen done in a public file. You must have a sailor on their hands or somebody who knows that. I have no clue. But you what you must include is the census tract. That's what they mean by geography.
The next thing included in the public file is a list of branches that were opened or closed by the bank or credit union. during the current year and each of the prior two calendar years. So if you didn't open any, that's okay, I would just state that fact you didn't open any but if you did open or close any branches then you would need to include that in the public file along with the street addresses and geographies otherwise known as census tracts. That's the fourth thing.
The fifth thing is you need to include a list of services that are generally offered at your bank’s branches . So you're going to list your services generally offered but you do need to disclose and provide descriptions of material differences and the availability or cost of services at particular branches. So some branches don't offer all services, you need to differentiate that in your public file. You also need to include in this list of services your hours of operation, your available loan and deposit products and any transaction fees.
The next thing included in the file is a map of each assessment area. So this would be a physical visual map of your assessment area. It would reflect the boundaries of your assessment area. So have a hard line. I've seen some financial institutions use a Sharpie marker to draw in the assessment area and the boundaries. Also you need to include the identifying geographies otherwise known as census tracts that are contained in the area. Now the geographies can be on the map and for some rural credit unions or community banks that'll be easy. There's plenty of room to include it but if you're in an urban area or a large city, that's not going to be possible so you could put it on a separate list. It could be either on the map or on a separate list. Either is fine. So that's what's included.
Then the final thing that's the main piece for every financial institution is any other information you choose. So if there's other information in the file that's okay as long as it's relevant and as long as it doesn't make some of the prior requirements we just talked about irrelevant.
Those are the main things every financial institution needs.
Now there are some specific requirements for certain types of institutions. The first type of institution is a large bank or a large financial institution. Large financial institutions have specific requirements. Specifically, they must include a copy of their CRA disclosure statement. Large financial institutions, banks and credit unions both have to report CRA data much like HMDA reporters have to report HMDA lar. So this is specific CRA data that's reported. They get a report back called their disclosure statement and that has to go in the public file. That's where they get it.
Also, if a large financial institution has elected to have one or more categories of consumer loans considered under their lending test, then they have to include information based on low, moderate, middle and upper income individuals; information that's located in low, moderate, middle, or upper income census tracts; and information about loans that are inside and outside of their assessment area. So some extra information for large financial institutions.
If you are a HMDA reporter, you have special requirements as well. If you are a HMDA reporter, you have to have a copy of your HMDA disclosure statement that is provided by the FFIEC. Traditionally, that has been every fall. The CFPB now is saying that that will be done sooner. So, whenever that is released, you are actually supposed to put that in your public file within a few days. I believe it is three days. I don't have it on my notes here, but I believe it is within three days of receiving that. So, it has to go in there extremely quick.
And small banks - so anybody who is not a large financial institution, this would include small credit unions, that means you're under about a billion and a little bit of change, you're under that threshold that you're a small bank or an intermediate small bank - you have to include your loan-to-deposit ratios for each quarter of the prior calendar year. And this does include intermediate small banks because you are considered a small bank under the CRA definitions. Now the loan-to-deposit ratios need to be calculated in accordance to call report standards. So if you have questions on that check with your CFO, but that does have to be in the public file.
Also included in the public file would be financial institutions that have strategic plans. Now this would be a financial institution that has a strategic plan that was approved by the regulator. Maybe they have a unique situation and they want to be evaluated under a CRA-specific strategic plan. This is not your annual strategic planning plan. This is a CRA strategic plan. If you have one of those, which is pretty rare, then you would have to include that in your CRA public file.
Also for financial institutions with less than a satisfactory rating you have to include a description of your efforts to improve your performance in helping to meet the credit needs of your entire community.
That is what's needed in a CRA public file.
I hope you found this video beneficial.
