Community Contacts

Question 1

What are the primary objectives of conducting interviews with local community contacts? (4)

Answer 1

• Gather information that might assist in the development of a community profile.

• Determine opportunities for participation by financial
institutions in helping to meet local credit needs.

• Understand perceptions on the performance of financial
institutions in helping meet local credit needs.

• Provide a context on the community to assist in the
evaluation of an institution’s CRA performance.

Question 2

The number and nature of contacts selected depends on what factors?(3)

Answer 2

• Complexity of the community.
• Size and type of the institution examined.
• Amount and age of community driven information already
available to the examiner.

Question 3

What two areas should be kept confidential regarding community contacts?

Answer 3

The bank’s proprietary information.

The identity of the community contact. (Unless they give express permission to do so)

Question 4

What three things should be done in preparation for the interview?

Answer 4

• Review information on the AA
• Select the community contact
• Structure the interview

Question 5

When reviewing information about the AA prior to an interview, examiners should consider reviewing what? (10)

Answer 5

• Economic and Demographic conditions of the AA and near
• Infrastructural and geographic characteristics within the AA
• Distribution and availability of branch and ATM services especially in LMI areas in the AA. Including check cashing facilities.
• Development issues including Affordable housing, commercial activities, and economic/community development.
• previous community contacts
• if reviewing an MSA, contact the city municipality and obtain a copy of its Consolidated Plan which lists the needs of the MSA identified by officials.
• Public reports from Multiple listing sources and news articles on local development projects
• Priorities of the community and opportunities for bank’s to participate
• number and nature of govt agencies, non-profit, and other organizations that provide programs and resources to the AA
• Identify areas that require further inquiry from the community contact.

Question 6

What sorts of factors can be considered with regard to economic and demographic characteristics? (5)

Answer 6

• segments of the population/community
• trends in migration
• labor and employment characteristics
• comparisons to state and county/MSA data, and
• Housing and RE market statistics.

Question 7

What sorts of things can be reviewed with regard to infrastructural and geographic characteristics in an AA? (7)

Answer 7

• Maps
• Natural areas
• Major thoroughfares
• access to public transit
• locations of LMI tracts
• Names of LMI neighborhoods
• Proximity to military bases, airports, and metropolitan centers.

Question 8

How should examiners identify and select community contacts? (3)

Answer 8

• Select contacts that can best provide info on the AA
• consider the nature of the info sought for your analysis and the purpose of the organizations in the area.
• Determine the number of community contacts to make.

Question 9

What should examiners consider when determining the number of community contacts to make? (5)

Answer 9

Consider the following when determining the number of contacts to make:

• -nature of info provided by bank regarding CD needs and opportunities
• -nature of public comments regarding CD needs
• -amount of community contact info available from other community contacts in the database and date it was gathered.
• -complexity of the community (size of population and geography and diversity of population)
• -characteristics of the bank examined.

Question 10

What are the different types of organizations available for community contacts? (6)

Answer 10

• Grassroots community groups (churches, shelter providers, health clinics, advocacy groups)
• Community based development or financial intermediaries (Non-profits and CDCs, community loan funds, low-income housing orgs, small business investment corporations)
• Government offices (local branches of federal agencies like HUD, local groups for federally funded programs like Community action agencies, Local elected officials, local housing agencies/authorities, economic development agencies)
• Business and Labor Groups (chambers of commerce, realtors, small business development centers, cattlemen associations)
• Civil rights and consumer protection groups (Fair housing orgs, NAACP, legal aid, state attorney general)
• Other potential contacts (universities, research institutions, foundations, hospitals)

Question 11

What sorts of questions should be asked/information obtained during a community contact? (4)

Answer 11

• Background information on the contact (area of expertise, role they play in community)
• Obtain the community profile (current economic conditions, trends, current demographic characteristics, and credit needs)
• Assessing opportunities for bank participation (availability of resources dedicated to local credit or development needs identified, level of contact’s efforts in approaching local banks and mechanisms of financing)
• local perspective on performance of banks (willingness and responsiveness of banks to work with local residents and professionals in meeting credit and development needs)