Frequently Asked Questions
What is the Community Reinvestment Act (CRA)?
The Community Reinvestment Act (CRA), enacted in 1977, mandates that federal banking regulators encourage financial institutions to meet the credit needs of the communities in which they operate, particularly low- and moderate-income (LMI) neighborhoods. [Learn more]
Which institutions does CRA apply to?
CRA applies to FDIC-insured depository institutions, including national banks, savings associations, and state-chartered commercial and savings banks.
How are CRA evaluations conducted?
CRA evaluations involve three main tests: the Lending Test, the Investment Test, and the Service Test. [More details]
What are the CRA Ratings?
CRA ratings range from "Outstanding" to "Substantial Noncompliance," indicating the level of a bank's compliance with CRA requirements.
How do I identify CRA eligible loans on xChange?
CRA eligible loans are labeled with the Low-Income Borrower (LB) and Low-Income Community (LC) icons and display the CRA Guarantee Shield.
How are borrower income qualifying loans eligible for CRA Credit?
Borrower income qualifying loans are eligible as the income level of the borrower is 80% or below the Area Median Income (AMI) for their respective geographic area.
How are property location qualifying loans eligible for CRA Credit?
Property location qualifying loans are eligible as the subject real property is in a low or moderate-income census tract or a federally designated Promise Zone, Opportunity Zone, or Persistent Poverty County. xChange verifies the eligibility of the property address location and census tract using accredited third-party databases.
What is a CDFI?
A Community Development Financial Institution (CDFI) is an entity—such as a bank, credit union, or loan fund—that provides financial services to underserved communities, aiming to foster economic opportunity and neighborhood revitalization. [Learn more]
Why are CDFI’s important?
CDFIs play a crucial role in providing access to financial services and affordable credit in historically underserved communities, promoting economic development and empowerment. [More details]
How are xChange CDFI loans eligible?
xChange CDFI loans qualify based on borrower income, property location, and borrower demographics, aligning with CDFI Fund criteria. [Learn more]
How is loan impact eligibility determined?
xChange utilizes various federal and state regulatory guidelines, including CFR Part 25, US Census data, and CDFI Fund criteria, to determine loan impact eligibility.
What impact categories are available for purchase on xChange?
xChange offers loans categorized by impact, including those targeting Black/African American, Latino/Hispanic, Female, Low-Income Borrower, Low-Income Community, Persistent Poverty Community, First-Time Home Buyer, and CDFI Originated.
Community Impacts
- Black or African American - One or more borrower(s) have identified as Black/African American consistent with Regulation C.
- Latino or Hispanic - One or more borrower(s) have identified as Latino/Hispanic consistent with Regulation C.
- Female - One or more borrower(s) have identified as Female consistent with Regulation C.
- Persistent Poverty Community - The subject property is located in a distressed or underserved nonmetropolitan middle-income geography designated by the Federal Reserve, FDIC, and OCC based on criteria as defined in 12 C.F.R. §25(g)(4)(iii).
- First Time Buyer - The borrower is considered a first-time homebuyer if they have had no ownership in a residential property in the most current three-years.
- CDFI Originated Loan - A loan originated by a creditor designated as a Community Development Financial Institution as defined under 121 C.F.R §1805.104(h).
CRA Eligible
- Low or Moderate Income Borrower - The borrower(s) on the loan meet the definition of low- or moderate-income as defined in 12 C.F.R. § 25.12(m)(1), (2).
- Low or Moderate Income Community - The subject property is located in a low- or moderate-income geography as defined by 12 C.F.R. § 25.12 et seq.
- CRA Guaranteed - A home mortgage loan made to low- or moderate-income individuals or a loan that meets the definition of Community Development Loan under 12 C.F.R. 25.12(h).
What loan types are available on xChange?
xChange offers a range of loan products,including Conventional, Government (VA, FHA, USDA), Community Mortgage, Alt-Doc, and Investor loans. [Explore]
How do I purchase loans on xChange?
Purchasing loans on xChange is as easy as filtering for your criteria, adding loans to the cart, selecting the servicing option and clicking buy. This process can be done in under 10 minutes and you will get to view the complete loan files prior to settling on the purchase.
Do you provide loan servicing?
Loans can be purchased with either servicing retained or servicing released options.
Does xChange provide documentation for CRA examination?
Yes, complete loan files and an Impact Report are provided for each purchased loan to support CRA examination purposes.
How can I ensure loans have adequate documentation for CRA examination?
During the initial diligence period, purchasers are encouraged to review loan files to ensure they contain all required documentation for CRA examination.
How do I reset my password?
Click "Forgot Password" on the login screen or contact your xChange representative for assistance in obtaining a temporary password.
How do I get more information on loans?
Contact sales at sales@thechangecompany.com or reach out to your xChange representative for additional loan details or data tapes.
Does xChange guarantee CRA credit for purchased loans?
xChange offers a CRA Guarantee Certificate for eligible loans, but final determination of CRA eligibility should be based on purchaser’s internal due diligence and guidelines.
CRA
How are CRA evaluations conducted?
CRA evaluations involve three main tests: the Lending Test, the Investment Test, and the Service Test. [More details]
What are the CRA Ratings?
CRA ratings range from "Outstanding" to "Substantial Noncompliance," indicating the level of a bank's compliance with CRA requirements.
What is the Community Reinvestment Act (CRA)?
The Community Reinvestment Act (CRA), enacted in 1977, mandates that federal banking regulators encourage financial institutions to meet the credit needs of the communities in which they operate, particularly low- and moderate-income (LMI) neighborhoods. [Learn more]
Which institutions does CRA apply to?
CRA applies to FDIC-insured depository institutions, including national banks, savings associations, and state-chartered commercial and savings banks.
CDFIs
What is a CDFI?
A Community Development Financial Institution (CDFI) is an entity—such as a bank, credit union, or loan fund—that provides financial services to underserved communities, aiming to foster economic opportunity and neighborhood revitalization. [Learn more]
Why are CDFI’s important?
CDFIs play a crucial role in providing access to financial services and affordable credit in historically underserved communities, promoting economic development and empowerment. [More details]
How are xChange CDFI loans eligible?
xChange CDFI loans qualify based on borrower income, property location, and borrower demographics, aligning with CDFI Fund criteria. [Learn more]
Loan Impact and Eligibility
How is loan impact eligibility determined?
xChange utilizes various federal and state regulatory guidelines, including CFR Part 25, US Census data, and CDFI Fund criteria, to determine loan impact eligibility.
What impact categories are available for purchase on xChange?
xChange offers loans categorized by impact, including those targeting Black/African American, Latino/Hispanic, Female, Low-Income Borrower, Low-Income Community, Persistent Poverty Community, First-Time Home Buyer, and CDFI Originated.
Community Impacts
- Black or African American - One or more borrower(s) have identified as Black/African American consistent with Regulation C.
- Latino or Hispanic - One or more borrower(s) have identified as Latino/Hispanic consistent with Regulation C.
- Female - One or more borrower(s) have identified as Female consistent with Regulation C.
- Persistent Poverty Community - The subject property is located in a distressed or underserved nonmetropolitan middle-income geography designated by the Federal Reserve, FDIC, and OCC based on criteria as defined in 12 C.F.R. §25(g)(4)(iii).
- First Time Buyer - The borrower is considered a first-time homebuyer if they have had no ownership in a residential property in the most current three-years.
- CDFI Originated Loan - A loan originated by a creditor designated as a Community Development Financial Institution as defined under 121 C.F.R §1805.104(h).
CRA Eligible
- Low or Moderate Income Borrower - The borrower(s) on the loan meet the definition of low- or moderate-income as defined in 12 C.F.R. § 25.12(m)(1), (2).
- Low or Moderate Income Community - The subject property is located in a low- or moderate-income geography as defined by 12 C.F.R. § 25.12 et seq.
- CRA Guaranteed - A home mortgage loan made to low- or moderate-income individuals or a loan that meets the definition of Community Development Loan under 12 C.F.R. 25.12(h).
Loan Types
How do I purchase loans on xChange?
Purchasing loans on xChange is as easy as filtering for your criteria, adding loans to the cart, selecting the servicing option and clicking buy. This process can be done in under 10 minutes and you will get to view the complete loan files prior to settling on the purchase.
Purchasing and Support
How do I purchase loans on xChange?
Purchasing loans on xChange is as easy as filtering for your criteria, adding loans to the cart, selecting the servicing option and clicking buy. This process can be done in under 10 minutes and you will get to view the complete loan files prior to settling on the purchase.
Do you provide loan servicing?
Loans can be purchased with either servicing retained or servicing released options.
Compliance and Documentation
Does xChange provide documentation for CRA examination?
Yes, complete loan files and an Impact Report are provided for each purchased loan to support CRA examination purposes.
How can I ensure loans have adequate documentation for CRA examination?
During the initial diligence period, purchasers are encouraged to review loan files to ensure they contain all required documentation for CRA examination.
Support and Assistance
How do I reset my password?
Click "Forgot Password" on the login screen or contact your xChange representative for assistance in obtaining a temporary password.
How do I get more information on loans?
Contact sales at sales@thechangecompany.com or reach out to your xChange representative for additional loan details or data tapes.
Legal Assurance
Does xChange guarantee CRA credit for purchased loans?
xChange offers a CRA Guarantee Certificate for eligible loans, but final determination of CRA eligibility should be based on purchaser’s internal due diligence and guidelines.
