As an Intermediate Small Bank, we used to be excluded from considering loans for Community Development credit if they were already listed on the CRA Log. Now that we no longer have to compile CRA data, are these loans eligible for Community Development credit (assuming they are not on the HMDA-LAR and are for community development purposes)?

"Now that we no longer have to compile CRA data"

Actually the regulation says you no longer have to "REPORT" data. It doesn't say, you do not, or should not, "Collect" it. Especially if you want to see if you are in compliance with CRA lending requirements which are still part of an examination and the bank still has to be at least satisfactory in.

Page 6 of the Final Rule: "Although an intermediate small bank will no longer be required to collect and report data on small business or small farm loans or on the location of certain nonmetropolitan mortgage loans, the agencies will continue to evaluate such lending under the streamlined lending test if it constitutes a major product line of the bank."

I admit that there will have to be some recordkeeping on our part to allow the examiners to complete the lending tests that evaluate our geographic distribution and income level distribution. I think I'll wait for the exam procedures to get a clearer picture.

I have actually been told two different answers about CD lending for non-reporting banks. One is that if it's CD, and since it's not "reported" you can consider it. The other, and most common answer (and how I read the reg) is that you can report for CD credit the deals that are not "reportable" meaning that regardless of your submission status, if it would have been reportable, it is not a CD loan.

You can however gather that data as "extra credit" to share with your examiners if you have nothing that is true CD.