Community Reinvestment Act: Community Contacts

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Questions and Answers

What is the primary objective of conducting interviews with local community contacts?

To reveal confidential information obtained from the institution’s files

To understand the unique circumstances of the institution and/or the community (correct)

To draw conclusions about the institution’s performance or CRA rating

To accommodate varying communities and types of institutions

How should examiners treat confidential information obtained from institutions?

Reveal conclusions drawn about the institution’s performance

Obtain written permission before sharing any information

Maintain confidentiality and not reveal any proprietary information (correct)

Share information with other regulatory agencies for review

What is essential in maintaining the confidentiality of community contacts?

Sharing contact details with anyone outside the agency

Revealing community contact forms to financial regulatory agencies

Obtaining verbal permission before sharing any information

Not revealing the name or identifying information without express permission (correct)

What should examiners NOT do when making community contacts?

Reveal any confidential information obtained from the institution’s files Signup and view all the answers

Which of the following is a characteristic of grassroots community groups?

Low-income representation in policy and implementation aspects Signup and view all the answers

What types of organizations are considered as grassroots community groups?

Churches, block clubs, and health clinics Signup and view all the answers

What factors should be considered when determining the appropriate number of contacts to make during an examination?

Information provided by the institution and public comments Signup and view all the answers

What is a potential source of information for determining priorities of the community?

Prior community contacts in the area Signup and view all the answers

What type of organizations are difficult to identify but are of particular interest for community examination?

Grassroots groups Signup and view all the answers

What is a key consideration when selecting contacts for providing information on assessment areas?

Ability to provide information on development priorities and concerns of local low-income populations Signup and view all the answers

What should be considered when identifying areas that require further inquiry through the community contacts process?

Significant conflicting pieces of information that may require further investigation in the contact interviews Signup and view all the answers

What are examples of areas that may need further investigation through contact interviews?

Housing rehabilitation, multifamily development or single family home purchase needs for specific areas of the population Signup and view all the answers

What types of organizations should be initially consulted or selected on the telephone to determine which can best comment on particular issues?

Grassroots community groups Signup and view all the answers

What should be sought from low-income residents by grassroots community groups in functional/program aspects?

Input from low-income residents Signup and view all the answers

What are examples of sources that can provide guidance on development priorities and concerns of local low-income populations?

Prior community contacts in the area Signup and view all the answers

What is an important factor influencing the number and nature of community contacts?

The complexity of the community and the institution examined Signup and view all the answers

What is a quantitative source that should be reviewed when preparing for community contact interviews?

Migration trends Signup and view all the answers

What should be considered when assessing infrastructural and geographic characteristics within assessment areas?

Proximity to military bases and metropolitan centers Signup and view all the answers

What is a vital local development issue that should be assessed during community contacts?

Affordable housing Signup and view all the answers

What may examiners consider obtaining from Multiple Listings Services (MLS) when conducting community contacts?

Public reports Signup and view all the answers

What influences the objectives for the community contact process?

The complexity of the community and the institution examined Signup and view all the answers

Study Notes

Community Profile Development and Financial Institution Participation

The FDIC conducts community contacts in the areas served by financial institutions to evaluate their performance in meeting local credit needs.
Community contacts can take the form of personal meetings, telephone conversations, or larger group meetings, and information is maintained in the FDIC’s Community Contact Database.
The number and nature of community contacts depend on factors like the complexity of the community and the institution examined.
The agencies routinely share information obtained during outreach contacts.
Adequate preparation for community contact interviews includes reviewing information on assessment areas, selecting community contacts, and structuring the interview.
Review of available data includes quantitative sources like population segments, feasibility studies, migration trends, market analysis, and labor characteristics.
Assessing infrastructural and geographic characteristics within assessment areas involves reviewing maps, natural areas, major thoroughfares, public transportation access, and proximity to military bases and metropolitan centers.
Assessing the distribution and availability of branch and ATM services, especially in low-income areas, and reviewing check cashing facilities, if possible, is also important.
Assessing local development issues and priorities in areas like affordable housing is vital, and potential sources for this information include state or local economic development agencies, utility companies, and real estate organizations.
Examiners may review Conplans from a city’s municipality and assess prevailing economic conditions and demographic characteristics within and near the assessment areas.
The examiner may consider obtaining public reports from Multiple Listings Services (MLS) and news articles on local development projects, and review previous community contacts for the locality.
The nature, extent, and age of available information prior to conducting community contacts influences the objectives for the community contact process and allows for more detailed and in-depth interviews.

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Description

Learn about the information and procedures for conducting community contact interviews as part of the Community Reinvestment Act. This section provides a wide variety of subjects to accommodate varying communities and types of institutions, and should be tailored to the unique circumstances of the institution and/or the community.