We're a small community bank that curently maintains a single loan pricing sheet for all branches to use. We supply the exception risk based pricing notices to all. A question has come up as to whether we can establish a separate loan pricing sheet by county. Would this be considered as risk-based pricing?

Risk based pricing is based on the credit risk of the individual borrowers.

If you mean can you have separate pricing for different counties, that is a totally separate issue.

If you do, it should be well documented as to the reasons, i.e., documented competitive pressures, etc., especially if the demographics between the counties are different. A higher price in a county with a higher minority population or customer base might lead to a disparate impact.

If you do provide a risk based pricing notice, must the institution maintain a copy in its records, and if so, for how long?

There are no retention requirements in the regulation.