The Consumer Banking Association (CBA) is advocating for the modernization of the Community Reinvestment Act (CRA).
The position stems from the Office of the Comptroller of the Currency’s (OCC) recent decision to advance efforts to repeal the June 2020 CRA rule and collaborate with the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on a joint rulemaking process.
“America’s banks have willingly invested trillions into lower and moderate-income communities to help bring access and affordability to those most in need,” CBA President and CEO Richard Hunt noted via a statement. “It is well past time for federal regulators to finally demonstrate responsible government by modernizing CRA for the first time in over two decades. Any modernized CRA rule should be transparent, flexible, and consistent across regulators to ensure banks are able to optimize support for the communities they serve.”
The CBA indicated Acting Comptroller of the Currency Michael Hsu is slated to deliver a keynote address at CBA LIVE next month, presenting a regulatory agenda expected to include CRA modernization.
Per the CBA, the CRA modernization initiative would provide banks with greater clarity concerning which investments would count while also ensuring CRA investments reach communities in greatest need.
“We once again commend the OCC for bringing this issue to the forefront in an effort to modernize this antiquated law, and we look forward to working collaboratively with the OCC, FDIC, and Federal Reserve to modernize the CRA through a joint rulemaking,” Hunt concluded.