Has anyone had success with counting FannieMae product "My Community Mortgage" as flexible? Our examiner says that, since it targets no greater than 100% of the median, that it does not meet the definition of community development and cannot be counted as flexible.

What's funny is, the same examiner counted on the last exam.

CD is defined as services focused on LMI.

LMI is defined as those with incomes less than 80% of the MFI.

Sounds like they were a little too "flexible" the last exam.

I searched other bank PE's and found 5 banks that received credit for it within 5 minutes. I am sure I could find dozens if I tried. The guidelines themselves says they "target" LMI. Just because everyone that can get it is not 80% or less of the median does not mean that it is not a flexible product that "targets" LMI.

At the very least, the OCC needs to get it's act together and have some sort of consistency. If this were an isolated incident for us that would be different. But I can give you a dozen or more things that suddenly do not count, that counted the last exam and has counted for literaly hundreds of other bank. It is totally unacceptable.

If it makes you feel any better, we have had a similar experience with the FDIC. Something counts one time & then doesn't another. And, FWIW, I have had lots of trouble with trying to submit programs that "target" LMI individuals. In your case we would have to show that the majority of folks actually getting these loans are LMI, regardless of who the program is trying to cater to.

we all hear you Retiree.....

I believe that once I have determined how many of the MCM loans that we have made are actually to low- to moderate-income borrowers, the majority will be LMI. However, our examiner said that it did not matter if most of the loans were made to LMI borrowers. It still would not count because the program is not "just" for LMI borrowers. Does that make sense to anyone?

Common sense in CRA, c'mon Retiree.....

Common sense would have me think that similar to CDL or investments(based on the 2009 Q and A), you should receive pro rata credit for the percentage of LMI (as defined by the CRA) borrowers receiving loans through the MyCommunityMortgage program. However until the jury comes back, you may want to
"continue to present such loans to examiners as ‘‘other loan data.’’".

Did I say "common sense" and "examiners" in the same post?