Depository institutions are evaluated on their record of helping meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods.

Assessment areas are defined by the institution around its main office, branches and deposit-taking facilities, and must consist of whole geographies without arbitrarily excluding low- and moderate-income areas. Frameworks have been revised to account for lending outside branch networks.

Evaluation. Larger institutions are assessed on lending, investment and service performance; smaller ones under streamlined standards. Ratings are public, as are the evaluation reports.

Why the rating matters. It is considered in applications for mergers, acquisitions and branch openings, and an unsatisfactory rating can delay or defeat a transaction. Public comment on applications frequently focuses on it.

Activities that count. Home mortgage, small business, small farm and community development lending; qualified investments including in community development financial institutions; and retail and community development services.

Data collection and reporting obligations for larger institutions, with accuracy subject to examination.

Discrimination findings in fair lending examinations can lower the rating regardless of lending volumes, which is why the two programs are managed together.