The OCC today said it will formally “reconsider” the agency’s June 2020 final rule revising the agency’s Community Reinvestment Act rules and that banks subject to the rule may pause efforts to comply with it. “While this reconsideration is ongoing, the OCC will not object to the suspension of the development of systems for, or other implementation of, provisions with a compliance date of Jan. 1, 2023, or Jan. 1, 2024, under the 2020 CRA rule,” the agency said.
ABA President and CEO Rob Nichols welcomed the news. “By reconsidering its CRA Rule, the OCC provides an opportunity for the regulatory agencies to pursue a joint rulemaking in this area,” he said. “We still believe there is a compelling need to modernize CRA rules so they reflect the modern banking system and meet the needs of communities. Today’s action by the OCC can help us get there.”
However, covered banks must continue to comply with provisions of the CRA modernization rule that had a Oct. 1, 2020, compliance date, the agency said. These provisions were explained and interpreted in a 2020 OCC bulletin.
The OCC also added that it does not plan to finalize a December 2020 proposed rule on how the agency will evaluate CRA compliance under the new rule and that it will discontinue the CRA data collection published that month. ABA and nine other trade groups earlier this month urged the OCC either to withdraw or formally delay compliance with the new rule, noting the likelihood that the next Senate-confirmed comptroller may pursue a different CRA modernization path.