OCC and FDIC Propose Changes to CRA Regulations
On January 9, 2020, the OCC and FDIC published a joint notice of proposed rulemaking (NPRM) to solicit comments on proposed amendments to the regulations implementing the Community Reinvestment Act (CRA). Separately, on January 10, 2020, the OCC published a request for information (RFI) seeking bank-specific data and information to supplement currently available data.
The agencies state that the current CRA regulatory framework has failed to keep pace with changes in banking or technology and has restricted banks’ ability to meet the lending and investment needs of their communities. In August 2018, the OCC issued an advanced notice of proposed rulemaking to explore the best way to modernize the CRA regulatory framework. Based on this feedback and other engagement with stakeholders, the agencies propose to improve the CRA regulatory framework by:
- clarifying and expanding which activities qualify for CRA credit;
- revising where activities qualify for CRA credit;
- creating more objective CRA performance standards; and
- updating data collection, retention, and reporting obligations.
One proposal for expanding activities that qualify for CRA credit includes establishing an agency confirmation process for banks to confirm that an activity qualifies for CRA credit. The agencies also propose new performance standards that would assess a bank’s distribution of qualifying retail loans and impact of qualifying activities. The agencies suggest revising the data collection, retention, and reporting obligations to provide the agency with better access to measure CRA activity across areas, the industry, and over time. In the RFI, the OCC requested bank data or information on retail domestic deposit activities, qualifying activity data, and data on retail loans originated and sold within 90 days.
Comments for the NPRM must be received on or before March 9, 2020. Comments for the RFI should be submitted by March 10, 2020.
