Assigned Ratings

(1) Ratings in General. Subject to 209 CMR 46.28(2) and (3), the Commissioner assigns to an institution a rating of "outstanding," "high satisfactory," "satisfactory," "needs to improve," or "substantial noncompliance" based on the institution's performance under the lending, investment and service tests, the community development test, the small institution performance standards, the intermediate small institution standards, or an approved strategic plan, as applicable. (2) Lending, Investment, and Service Tests. The Commissioner assigns a rating for an institution assessed under the lending, investment, and service tests in accordance with the following principles: (a) an institution that receives an "outstanding" rating on the lending test receives an assigned rating of at least "satisfactory"; (b) an institution that receives an "outstanding" rating on both the service test and the investment test and a rating of at least "high satisfactory" on the lending test receives an assigned rating of "outstanding"; (c) no institution may receive an assigned rating of "satisfactory" or higher unless it receives a rating of at least "satisfactory" on the lending test; (d) an institution that receives a "satisfactory" rating on the lending test and either the service or investment test, and receives a rating of "needs to improve" on the third test, receives an assigned rating of "satisfactory"; and (e) a credit union that receives a "satisfactory" rating on the lending test and receives a rating of "needs to improve" on the service test, receives an assigned rating of "satisfactory". (3) Effect of Evidence of Discriminatory or other Illegal Credit Practices. Evidence of discriminatory or other illegal credit practices adversely affects the Commissioner's evaluation of an institution's performance. In determining the effect on the institution's assigned rating, the Commissioner considers the nature and extent of the evidence, the policies and procedures that the institution has in place to prevent discriminatory or other illegal credit practices, any corrective action that the institution has taken or has committed to take, particularly voluntary corrective action resulting from self- assessment, the institution's compliance with written policies and directives with regard to fair lending, and other relevant information. In connection with any type of lending activity described in §46.22(1)(a), evidence of discriminatory or other credit practices that violate an applicable law, rule, or regulation includes but is not limited to: (i) Discrimination against applicants on a prohibited basis in violation, for example of the Equal Credit Opportunity Act or Fair Housing Act; (ii) Violations of M.G.L. Chapter 183C, Predatory Home Loan Practices; (iii) Violations of section 5 of the Federal Trade Commission Act; (iv) Violations of section 8 of the Real Estate Settlement Procedures Act; and (v) Violations of the provisions of M.G.L. Chapter 140D regarding a consumer’s right of rescission or other violations of M.G.L. Chapter 140D and its implementing regulations 209 CMR 32.00.