Capital One and Wells Fargo Rated ‘Outstanding' in CRA Compliance

Core Insights - The Office of the Comptroller of the Currency (OCC) rated Capital One and Wells Fargo as "outstanding" in their Community Reinvestment Act (CRA) performance evaluations, with 10 financial institutions receiving this top rating [1][2] - A total of 16 financial institutions were rated "satisfactory," and none were rated "needs to improve" or "substantial noncompliance" [1] Group 1: Outstanding Ratings - The 10 banks rated "outstanding" include Capital One, Collinsville Building and Loan Association, First Neighbor Bank, Lake Shore Savings Bank, Lyons Federal Bank, Ponce Bank, Shamrock Bank, The Granger National Bank, The Security National Bank of Enid, and Wells Fargo Bank [2] - Both Capital One and Wells Fargo excelled in the three major factors of the CRA evaluation: the lending test, the investment test, and the service test [3][5] Group 2: Capital One's Performance - Capital One's evaluation highlighted its flexible secured consumer credit card products, which provided access to credit to individuals who did not meet traditional underwriting guidelines [4] - The bank also formalized its volunteer services through a pro bono program that aligns employee skills with nonprofit needs and made an adequate percentage of loans in its assessment areas [4] Group 3: Wells Fargo's Performance - Wells Fargo's evaluation noted its use of flexible lending programs to enhance performance across multiple assessment areas [5] - The bank also offered innovative or complex certificate of deposit (CD) investment initiatives and retail service programs [5] Group 4: CRA Overview - The OCC determines CRA ratings based on performance tests and standards outlined in the CRA rule, which was enacted in 1977 to combat discriminatory lending practices in minority neighborhoods [6] - The OCC's list includes national banks, federal savings associations, and insured federal branches of foreign banks that have received CRA ratings [7]