• This page, Mortgage Lender Community Investment (CRA for mortgage lenders), is   offered by
  • Division of Banks

Mortgage Lender Community Investment (CRA for mortgage lenders)

The Division of Banks (DOB) examines licensed mortgage lenders making 50 or more home mortgage loans in the previous calendar year for CRA compliance. Learn more about CRA for mortgage lenders in Massachusetts.

Table of Contents

Examination process

Examinations include an evaluation for CRA compliance, and for compliance with the Equal Credit Opportunity Act (ECOA), the Home Mortgage Disclosure Act (HMDA), and other consumer protection and fair lending laws and regulations. 

The DOB uses certain performance tests and standards to evaluate CRA performance. These include:

  • Lending test
  • Service test
  • Investment test (optional)

The DOB also examines for evidence of discriminatory lending practices. Through this fair lending examination process the DOB evaluates whether credit applicants were treated differently than other applicants due to:

  • Race
  • Color
  • Religion
  • National origin
  • Ethnic origin
  • Sex
  • Marital status
  • Age
  • Sexual orientation
  • Physical impairment
  • Source of income (all or part of an applicant's income comes from a public assistance program)
  • Property location

Ratings and public evaluations

Based on your CRA examination performance, one of five ratings is assigned:

  1. Outstanding
  2. High Satisfactory
  3. Satisfactory
  4. Needs to Improve
  5. Substantial Noncompliance

These ratings are public information. A public evaluation is issued after the exam is complete. A public evaluation provides a narrative description of the institution's CRA performance. Institutions must maintain a copy of the public evaluation in a public information file and make the evaluation available upon request.

Assessment Area

The Commonwealth of Massachusetts is the assessment area for mortgage lenders. Mortgage lenders may request a different assessment area in Massachusetts. The DOB evaluates the institution's record of helping to meet community mortgage loan credit needs within the assessment area(s).

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