Regulators Expect to Release CRA Revamp as Soon as this Month

American Banker
Monday, March 7, 2022

Federal banking regulators are expected to issue a long-awaited proposal for modernizing requirements under the Community Reinvestment Act as early as this month, officials said Monday. The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency plan to issue a joint revamp of the anti-redlining law after years of interagency tension over the issue during the Trump administration. Last year, acting Comptroller Michal Hsu rescinded a breakaway rule change made in 2020 under former Comptroller Joseph Otting that had for the first time created a different interpretation among the regulators of how banks must comply. Since then, the three agencies have been working together on how to move forward with a unified modernization of the 1970s-era law. The agencies are eyeing issuing a formal proposal in March, said Mark Pearce, director of FDIC’s division of depositor and consumer protection, at a Monday event hosted by the Consumer Bankers Association.