In a letter to banking regulators, the American Bankers Association said it supported the agencies’ decision to extend the applicability date of the facility-based assessment area, public file and public notice provisions in the Community Reinvestment Act rule that the agencies issued last year. However, the association said that the changes were only necessary due to drafting errors and the overall complexity of the new CRA rule. The final rule currently is subject to a preliminary injunction imposed by a federal court in a lawsuit brought by ABA and several business groups.
The Federal Reserve, FDIC and OCC recently extended the applicability date of the facility-based assessment areas, public file and public notice provisions from April 1, 2024, to Jan. 1, 2026. In its letter, ABA said it strongly supports the modifications. At the same time, the association cautioned its comments should not be construed to condone any actions taken by the agencies concerning the new CRA rule. The rules “should have been the most simple and straightforward requirements,” but drafting oversights by the agencies created confusion, ABA said.
ABA also urged the agencies to respond to bank inquiries in a timely and coordinated manner. It also suggested that the agencies use the additional time to train their staff on the new rules, as members of ABA’s CRA working group reported that examiners were unable to respond to questions about the requirements because they did not have the proper training. Finally, ABA said the agencies should consider the complexity of the rules they issue, as it is now clear that the final rules were so complex “that even the agencies did not fully appreciate the ambiguities and inconsistencies embedded in them.”
