How are banks compensating their loan officers to ensure they capture small business loan originations and smaller mortgage loan amounts. For example, is the base higher for those loan officers located in low- and moderate income areas? Separately, can one purchase mortgage loans in their assessment area to get equal credit for CRA as if they originated them?

What does "capture" mean?

Purchased loans count as if the bank originated them.

Sometimes the most simple and inexpensive tools are the most effective. A number of our clients have purchased from our company maps that show the location and street boundaries of the low and moderate-income tracts. These maps are then distributed to loan officers so that the officers know exactly where these neighborhoods are. The banks then offer more flexible underwriting terms or lower cost financing to attract borrowers and to give their loan officers a competitive advantage.

What I meant by capture is to make sure they originate small business loans and not just go after the larger loans which equates to a higher compensation for the LO. This is why I asked if banks are making sure they lenders are compensated based on their assigned markets or goals include originating X # of small business loans. Thanks.

Personally I don't know of any incentive plans nor have I heard of any designed specifically to obtain small business loans in LMI census tracts.

I have seen many marketing program over the years and all had goals for business loans, that were geared to encourage the big ticket items. Plus it didn't matter where they came from as long as the goal was met. So you have a great idea.