(1)
Performance Tests and
Standards. The Commissioner assesses the MLCI performance of a
mortgage lender in an examination as follows:
Mortgage Lender Performance Standards.
The Commissioner applies the lending and service tests, as provided in
209 CMR 54.22 and
54.23 in evaluating
the performance of a mortgage lender. However, a mortgage lender that achieves
at least a "satisfactory" rating under both the lending and service tests may
warrant consideration for an overall rating of "high satisfactory" or
"outstanding" depending on the mortgage lender's performance in making
qualified investments and community development loans to the extent authorized
under law, in accordance with
209 CMR
54.61(2)(c).
(2)
Performance
Context. The Commissioner applies the tests and standards in 209
CMR
54.21(1) in the context of:
(a)
demographic data on median income levels, distribution of household income,
nature of housing stock, housing costs, and other relevant data pertaining to
the Commonwealth;
(b) any
information about lending and service opportunities in the Commonwealth
maintained by the mortgage lender or obtained from community organizations,
state, local, and tribal governments, economic development agencies, or other
sources;
(c) the mortgage lender's
product offerings and business strategy as determined from data provided by the
mortgage lender in the Commonwealth;
(d) the mortgage lender's capacity and
constraints, including the size and financial condition of the mortgage lender,
the economic climate (national, regional, and local), safety and soundness
limitations, and any other factors that significantly affect the mortgage
lender's ability to provide lending or services in the Commonwealth;
(e) the mortgage lender's past performance
and the performance of similarly situated lenders in the Commonwealth;
and
(f) any other information
deemed relevant by the Commissioner.
(3)
Assigned
Ratings. The Commissioner assigns to a mortgage lender one of the
following five ratings pursuant to
209 CMR
54.25
and
54.61: "outstanding";
"high satisfactory"; "satisfactory"; "needs to improve"; or "substantial
noncompliance" as provided in M.G.L. c. 255E, § 8. The rating assigned by
the Commissioner reflects the mortgage lender's record of helping to meet the
mortgage credit needs of the Commonwealth, including low- and moderate-income
neighborhoods, consistent with the safe and sound operation of the mortgage
lender.
(4)
Safe and
Sound Operations.
209 CMR
54.00 does not
require a mortgage lender to make loans or investments or to provide services
that are inconsistent with safe and sound operations. To the contrary, the
Commissioner anticipates mortgage lenders can meet the standards of
209 CMR
54.00 with safe and
sound loans, investments, and services on which the mortgage lender can expect
to make a profit. Mortgage lenders are permitted and encouraged to develop and
apply flexible underwriting standards for loans that benefit and are suitable
for low- and moderate-income geographies or individuals, only if consistent
with safe and sound operations.
