(a) In general. In reviewing a community support statement, FHFA shall take into account a member's performance under the CRA if the member is subject to the requirements of the CRA, and the member's record of lending to first-time homebuyers.
(b) CRA standard--(1) Adequate performance. A member that is subject to the requirements of the CRA shall be deemed to meet the CRA standard if the rating in the member's most recent CRA evaluation is ``outstanding'' or ``satisfactory.''
(1) Adequate performance. A member that is subject to the requirements of the CRA shall be deemed to meet the CRA standard if the rating in the member's most recent CRA evaluation is ``outstanding'' or ``satisfactory.''
(2) Probationary performance. A member that is subject to the requirements of the CRA shall be subject to a probationary period if the rating in the member's most recent CRA evaluation is ``Needs to Improve.'' The probationary period shall extend until the member's appropriate Federal banking agency completes its next CRA evaluation and issues a rating. The member will be eligible to receive long-term advances during the probationary period. If the member does not meet the CRA standard at the end of the probationary period, FHFA will restrict the member's access to long-term advances in accordance with Sec. 1290.5.
(3) Inadequate performance. FHFA will restrict a member's access to long-term advances in accordance with Sec. 1290.5 if the rating in the member's most recent CRA evaluation is ``Substantial Non-Compliance.''
(c) First-time homebuyer standard--(1) Adequate performance. In the absence of public comments or other information to the contrary, FHFA will presume that a member meets the first-time homebuyer standard if the member is subject to the requirements of the CRA and the rating in the member's most recent CRA evaluation is ``outstanding.'' In determining whether other members meet the first-time homebuyer standard, FHFA will consider a member's description of its efforts to assist first-time or potential first-time homebuyers or its explanation of factors that affect its ability to assist first-time or potential first-time homebuyers. A member shall be deemed to meet the first-time homebuyer standard if the member otherwise demonstrates to the satisfaction of FHFA that it:
(1) Adequate performance. In the absence of public comments or other information to the contrary, FHFA will presume that a member meets the first-time homebuyer standard if the member is subject to the requirements of the CRA and the rating in the member's most recent CRA evaluation is ``outstanding.'' In determining whether other members meet the first-time homebuyer standard, FHFA will consider a member's description of its efforts to assist first-time or potential first-time homebuyers or its explanation of factors that affect its ability to assist first-time or potential first-time homebuyers. A member shall be deemed to meet the first-time homebuyer standard if the member otherwise demonstrates to the satisfaction of FHFA that it:
(i) Has an established record of lending to first-time homebuyers;
(ii) Has a program whereby it actively seeks to lend or support lending to first-time homebuyers, including, but not limited to, the following--
(A) Providing special credit products with flexible underwriting standards for first-time homebuyers;
(B) Participating in Federal, State, or local government, or nationwide homeownership lending programs that benefit, serve, or are targeted to, first-time homebuyers; or
(C) Participating in loan consortia for first-time homebuyer loans or loans that serve predominantly low- or moderate-income borrowers;
(iii) Has a program whereby it actively seeks to assist or support organizations that assist potential first-time homebuyers to qualify for mortgage loans, including, but not limited to, the following--
(A) Providing, participating in, or supporting special counseling programs or other homeownership education activities that benefit, serve, or are targeted to, first-time homebuyers;
(B) Providing or participating in marketing plans and related outreach programs targeted to first-time homebuyers;
(C) Providing technical assistance of financial support to organizations that assist first-time homebuyers;
(D) Participating with or financially supporting community or nonprofit groups that assist first-time homebuyers;
(E) Holding investments or making loans that support first-time homebuyer programs;
(F) Holding mortgage-backed securities that may include a pool of loans to low- and moderate-income homebuyers;
(G) Participating or investing in service organizations that assist credit unions in providing mortgages; or
(H) Participating in Bank targeted community lending programs; or
(iv) Has any combination of the elements described in paragraphs (c)(1)(i), (ii), or (iii) of this section.
(2) Probationary performance. If FHFA deems the evidence of first-time homebuyer performance to be unsatisfactory, the member will be subject to a one-year probationary period. The member will be eligible to receive long-term advances during the probationary period. If the member does not demonstrate compliance with the first-time homebuyer standard before the probationary period ends, FHFA will restrict the member's access to long-term advances in accordance with Sec. 1290.5.
(3) Inadequate performance. FHFA will restrict a member's access to long-term advances in accordance with Sec. 1290.5 if the member provides no evidence of first-time homebuyer performance.