Banks Can Earn CRA Credit in Gulf Coast Recovery Plan
Banks and thrifts assisting with the recovery and rebuilding of the disaster areas hit by Hurricanes Katrina and Rita are eligible for Community Reinvestment Act credit for at least three years, according to federal regulators. The new guidance states that loans, investments and services in support of disaster recovery that helps to attract new or retain existing businesses and residents to a designated disaster area will receive CRA consideration for a 36-month period.
The guidance, which is in a question-and-answer format, also gives the regulators the flexibility to extend that period, according to the Office of the Comptroller of the Currency.
"Of course, we are very likely to extend this period beyond three years, given the need for long-term involvement by financial institutions in helping to address the widespread devastation caused by Hurricanes Katrina and Rita," comptroller John Dugan said. The comptroller spoke at a Gulf Coast Bankers Conference in New Orleans that was organized by the Federal Deposit Insurance Corp.
(c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com