One of the first tests performed in an examination is how many loans
were made to borrowers in your established assessment areas where
deposits are collected versus outside of these areas.
This test divides products by required vs. optional lines. The purpose of
the report is to illustrate your performance in the required lines and quickly
identify optional lines of business that should contribute to improving your
overall performance rating.
This colorful report is designed to analyze all tracts within your
selected assessment area to determine the number of census tracts
by lending category where there is no lending activity. The higher the
number of tracts without lending activity, the more likely you may have
an issue that might require further analysis and explanation.
This report includes a mapping option that allows you to export your
assessment area data and lending activity to a file that can be
imported into many popular mapping programs.
This report measures your penetration rate with emphasis on low and
moderate income census tracts.
You have the option of running the report with or without market data.
However, your examiner will use the overall market data to measure
your performance in these tracts versus your peers (competitors) that
are lending to the same area.
Similar to the Assessment Area LMI Tract Penetration report above, this test goes farther into reviewing the income of the borrower in each of the consumer credit lending categories (HMDA, Home Equity, Auto and Consumer loans) by comparing your performance to your industry peers. The greater your percentage of lending to LMI borrowers over your competitors based on borrower income, the higher your rank.
Since the regulation specifically defines Community Development as encouraging a focus on serving the needs of low (or moderate) income individuals; this report addresses your Community Development activity and provides a relationship to that type of lending in your home state.