Preparing for FDIC Exam

Posted By: homebase10

Preparing for FDIC Exam - 05/25/10 02:38 PM

We are preparing for the FDIC Exam. I am struggling with understanding exactly what is qualified investment. I have read everything but can anyone give an example of a qualified investment ?
Posted By: Pale Rider

Re: Preparing for FDIC Exam - 05/25/10 06:49 PM

Qualified means the investment is CRA eligible and meets the definition of community development.

Community development investment is one that supports affordable housing, community services targeted to LMI, economic development by financing small business, and revitalizing or stabilizing LMI geographies.

It is simple, but very complex at the same time due to the subjectivity of community development.
Posted By: Karen Tucker

Re: Preparing for FDIC Exam - 06/04/10 01:43 PM

Example: purchase low-income housing tax credits; example: donate money to Habitat for Humanity; example: purchase affordable housing bonds; example: buy stock in a CDFI; example: buy New Markets Tax Credits; example: donate OREO to an affordable housing organization. Keep in mind the geo requirements to benefit AA or broader statewide/regional are that includes your AA (good example: buying a piece of a statewide affordable housing bond issued by your state, intended to benefit the entire state)