Skip to content
BOL Conferences
Thread Options
#1720468 - 07/17/12 01:37 AM Purchasing small business loans
Flyboat Offline
Junior Member
Flyboat
Joined: Jan 2006
Posts: 40
I'm researching whether a large bank will receive favorable consideration for purchasing small business loans. Does anyone have experience with bulk purchases of small business loans? Any suggestions on whether we will get lending test credit? Also, will they be CRA reportable?

Return to Top
CRA
#1720470 - 07/17/12 01:49 AM Re: Purchasing small business loans Flyboat
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Purchases of small business loans are reportable in a bank's annual submission. They count as small business, not community development. The bank should document why the purchase is being done..for example, to supplement its own lendng which might be limited due to lack of staff, with the added benefit of providing funding to the seller institution, thereby allowing them to relend those funds in the bank's market.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top