Financial services needs of local communities; assessment factors.
(a)Each covered financial institution shall have a continuing and affirmative obligation to meet the financial services needs of the communities in which its offices, branches, and other facilities are maintained, consistent with the safe and sound operation of the financial institution, and for credit unions, consistent with its common bond. In addition, each covered financial institution that provides all or a majority of its products and services via mobile and other digital channels shall have a continuing and affirmative obligation to help meet the financial services needs of deposit-based assessment areas, including areas contiguous thereto, low-income and moderate-income neighborhoods, and areas where there is a lac
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Financial services needs of local communities; assessment factors. (a) Each covered financial institution shall have a continuing and affirmative obligation to meet the financial services needs of the communities in which its offices, branches, and other facilities are maintained, consistent with the safe and sound operation of the financial institution, and for credit unions, consistent with its common bond. In addition, each covered financial institution that provides all or a majority of its products and services via mobile and other digital channels shall have a continuing and affirmative obligation to help meet the financial services needs of deposit-based assessment areas, including areas contiguous thereto, low-income and moderate-income neighborhoods, and areas where there is a lack of access to safe and affordable banking and lending services, consistent with the safe and sound operation of such financial institutions, and for credit unions, consistent with its common bond. (b) The Secretary shall assess the record of each covered financial institution in satisfying its obligation under subsection (a). To assist in carrying out this Act, the Secretary shall adopt rules incorporating the regulations applicable to covered financial institutions under federal law, and the Secretary may make such adjustments and exceptions thereto as are deemed necessary. (c) In addition, the Secretary shall adopt rules providing for an assessment of the following factors pertaining to whether covered financial institutions are meeting the financial services needs of local communities: (1) activities to ascertain the financial services needs of the community, including communication with community members regarding the financial services provided; (2) extent of marketing to make members of the community aware of the financial services offered; (3) origination of mortgage loans, including, but not limited to, home improvement and rehabilitation loans, and other efforts to assist existing low-income and moderate-income residents to be able to remain in affordable housing in their neighborhoods; (4) for small business lenders, the origination of loans to businesses with gross annual revenues of $1,000,000 or less, particularly those in low-income and moderate-income neighborhoods; (5) participation, including investments, in community development and redevelopment programs, small business technical assistance programs, minority-owned depository institutions, community development financial institutions, and mutually-owned financial institutions; (6) efforts working with delinquent customers to facilitate a resolution of the delinquency; (7) origination of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; (8) evidence of discriminatory and prohibited practices; and (9) such other factors or requirements as in the judgment of the Secretary reasonably bear upon the extent to which a covered financial institution is meeting the financial services needs of its entire community, including responsiveness to community needs as reflected by public comments.