As expected, the OCC today formally proposed to rescind the OCC’s 2020 Community Reinvestment Act rule with rules based on the 1995 CRA rules that were jointly adopted by the OCC, Federal Reserve and FDIC. Acting Comptroller of the Currency Michael Hsu earlier this summer signaled that he would rescind the 2020 changes and pursue a joint rulemaking to modernize the CRA with the other banking agencies.
“The issuance of the OCC’s NPR today is an important step toward strengthening and modernizing the CRA,” Hsu said. “The OCC is committed to working with the Federal Reserve and FDIC on a future joint rulemaking to develop a consistent framework across all banks that encourages higher levels of responsible lending, investments, services, and greater community engagement, particularly focused on helping to meet the needs of low- and moderate-income and other underserved communities across the nation.”
Comments on the proposal will be due by Oct. 29. The American Bankers Association has long advocated for a consistent approach to CRA modernization and will continue to work constructively with the agencies as they pursue a joint rulemaking in the days ahead.