OCC Proposes to Rescind 2020 CRA Final Rule

The OCC recently announced that it will propose rescinding the Community Reinvestment Act (CRA) final rule it issued in May 2020, which it now believes was an unsuccessful attempt to modernize the CRA.

The 2020 rule, previously covered by WBK here, amended the OCC regulation implementing the CRA. The OCC believes a new rule can better strengthen and modernize the CRA, a critical need that has been highlighted in part by the disproportionate impact the COVID-19 pandemic has had on low- and moderate-income communities. 

The OCC will work with the Board of Governors of the Federal Reserve System (Board) and the FDIC to develop a joint Notice of Proposed Rulemaking that addresses inequities and changes in the banking industry. The agencies intend to build on the Advance Notice of Proposed Rulemaking the Board proposed in September 2020, available here.