Do ISBs have the option of reporting small business loans as CD (if they meet the definition of CD)? I have read several threads that reference the Q & A, but I can't find the section. I found one section of the Q&A that says if you are an ISB but report your data to keep the option open of being examed as a large institution, then you can, but we don't report our data.

Could someone point me to where it explicitly states that ISBs can consider small biz loans as CD?

Thanks in advance!

From the Q&A page 11649:

May an intermediate
small institution that is not subject to
HMDA reporting have home mortgage
loans considered as community
development loans? Similarly, may an
intermediate small institution have
small business and small farm loans
and consumer loans considered as
community development loans?
A3. Yes. In instances where
intermediate small institutions are not
required to report HMDA or small
business or small farm loans, these
loans may be considered, at the
institution’s option, as community
development loans, provided they meet
the regulatory definition of ‘‘community
development.’’ If small business or small
farm loan data have been reported to the
agencies to preserve the option to be
evaluated as a large institution, but the
institution ultimately chooses to be
evaluated under the intermediate small
institution examination standards, then
the institution would continue to have
the option to have such loans
considered as community development
loans. However, if the institution opts to
be evaluated under the lending,
investment, and service tests applicable
to large institutions, it may not choose
to have home mortgage, small business,
small farm, or consumer loans
considered as community development
loans.

That's the section I gave my CO, but she doesn't like it.

It's the use of the word "or" in the first sentence. We do have to report for HMDA.

"not required to report HMDA or small
business or small farm loans"

So she thinks this means if you are a HMDA reporter you can not have small business loans evaluated as CD if they meet the definition?

They are treated independently. HMDA loans that are not reported because not required can be designated for CD if qualified.

CRA reportable small business/small farm loans that are not reported (or reported to preserve exam option) can similarly be designated as CD if they otherwise qualify.

I agree. Now to convince my CO...

I work for an ISB which was just examined for CRA this year, and I can say that YES, you can report small business loans as CD loans if they meet the definition. What happens is they come out of the bank's small business data and move into the bank's CD data. (You can't double dip between the two.)

But don't change your call report.

Yes that is exactly how she is interpreting this section. Is there anything else that spells it out? ISB=small business counted as CD?

Can you show her this thread? You have an excellent CRA "guru" in Kathleen B providing her expertise!!

"I read it on an internet social media site, so it must be true" may not be the best defense, just my opinion....kind of reminds me of the commercial for State Farm, where her date comes down the street, he is a French model.....

It a funny commercial.

TMatt

Check your PMs as I sent something that might help you.

Thanks everyone. I contacted our EIC and he sided with me (and everyone here).

::Does victory dance::