FDIC Provides Guidance for Structuring MBSs to Qualify for Banks’ CRA Investment Credit
February 27, 2004
The Federal Deposit Insurance Corp. has issued guidance for banks that want to claim credit toward their Community Reinvestment Act obligations for investing in mortgage-backed securities. To determine if an investment will be considered in a bank’s CRA evaluation, the investment must be primarily for community development and benefit the bank’s immediate or broader assessment area, which is where it does business,