A group of financial industry trade groups, including the Consumer Bankers Association, are calling on the Office of the Comptroller of the Currency (OCC) to withdraw its June 2020 Community Reinvestment Act (CRA) Rule or delay its January 2023 compliance date.
The organizations said the rule should be withdrawn or delayed due to changes in Administration and the OCC leadership.
“To date, most banks have conducted preliminary preparations to implement the June 2020 Rule; they have not yet dedicated the full scope of resources that will be needed to create the technological infrastructure necessary to comply with the Rule and its new data reporting requirements,” the associations wrote to Acting Comptroller Blake Paulson.
The letter was signed by the American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Community Development Bankers Association, Housing Policy Council, Independent Community Bankers of America, Mortgage Bankers Association, National Association for Affordable Housing Lenders, and National Bankers Association.
“However, as budget season and the 2023 compliance date draw near, CRA personnel will be required to allocate significant funds and other resources to begin building new technology systems, hiring consultants, assembling project management teams, and retooling CRA programs. These will be significant expenditures that will be wasteful if the OCC significantly modifies the Rule as part of a future interagency rulemaking,” the letter continued.
Through the CRA, the organizations point out that banks are currently investing nearly $500 billion annually into communities across the country. Modernizing CRA will give banks more clarity as to which investments will count, allowing them to do more. Further, it will help ensure CRA investments reach communities that are most in need.