The designation of the 2004 MSA/MD boundaries will require the definition of revised MSA/MD median family income values for both new and revised geographies. The FFIEC has not yet provided revised MSA median family income values for the 2004 MSA/MD boundaries. As the Census tract income level is defined as the Census tract median family income as a percentage of the MSA/MD/non-metro area median family income, the potential for change in designation in 2004 is significant.
However, for CRA Wiz clients, PCi has used US Census methodologies to calculate a preliminary MSA/MD median family income figure. Using this value, it is possible to see the significant shifts in the tract income figures. If Don, or anyone else, would like to see a more detailed analysis of the tract changes, or receive the actual MSA/MD and non-metro area median family income figures, please contact PCi at 800.261.3111. For those who are interested, we also have approximated 2004 HUD Median values for the new MSA/MD geographies.
As a brief summary of the tract income category shifts, in initial assessments, over 3,500 Census tracts will have revised tract income levels when the revised MSA/MD boundaries become effective.
Suggested Actions to Manage the 2004 MSA/MD Definitions:
-- LMI penetration goal setting for 2004 should be revisited in light of the MSA/MD definitions and revised median family income values.
--Review Service Test performance for branch placement within new MSA/MD boundaries
--Any institutions with assessment areas in any of the new or modified geographies will need to revisit their assessment area definitions for 2004.
--Some institutions that have been lending exclusively in non-metropolitan areas will find that they now have additional obligations under HMDA and/or CRA.
--Review redlining analysis conducted, especially for non-metropolitan areas.
--Update public file information.
A few 2004 MSA/MD Facts and Figures
--The previous standard of 4-digit numbers to describe MSAs has been expanded to 5 digits. For example, the Akron, OH MSA “0080” is now MSA “10420”. The new designation for Metropolitan Divisions or MDs, which are sub-sets of MSAs, are also identified by 5 digits. Identifying code numbers are assigned alphabetically in accordance with the geography area title.
--All MSAs and MDs are comprised of whole counties. As of 2004, no counties will split into multiple metropolitan geographies.
--Non-MSA areas continue to exist in many states, but will consist of much smaller areas, and several states no longer contain non-MSA areas: District of Columbia, New Jersey, and Rhode Island are fully comprised of defined MSA/MD geographies.
--Of the 370 MSAs in the United States and Puerto Rico, 49 are new additions designated by the OMB for 2004.
--Eleven MSAs - those that contain a single core with a population of 2.5 million or more - are divided into subset areas identified as Metropolitan Divisions or MDs.
--These eleven MSAs represent 29 MDs
--In summary, there are a total of 359 MSAs and 29 MDs for 2004 HMDA/CRA reporting. The 29 MDs cover the area for the 11 MSAs removed from the geography listing.
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