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#1529106 - 03/30/11 08:33 PM Lending Performance - Alternative Benchmarks
JustGottaKnow Offline
Member
Joined: Aug 2008
Posts: 77
Typically, hmda lending performance is initially rated based off the assessment area market demographics. When looking at LMI tract performance, the owner-occupancy rates are the benchmark. Performance context issues may increase the initial rating, if warrented. Due to the financial crisis, the foreclosure crisis, and high unemployment rates; the opportunities to hit the 2000 census market demographics is extremely difficult and performance ratings are poor even after performance context issues are considered. I was wondering if any other institutions are using alternative benchmarks to determine more accurate ratings of lending performance, and if so, what are they?

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CRA
#1546586 - 05/05/11 04:25 PM Re: Lending Performance - Alternative Benchmarks JustGottaKnow
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Examiners are looking at how peers are performing in the market (as always but in this case it helps to see what the lending market is).

Also include information on your local economy, foreclosure #s, unemployment, consumer reluctance to borrow, softening home sales market. etc. - any data that will help to put your performance in context.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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