OCC’s Final CRA Rule Weakens Affordable Housing and Community Development Incentives

 

In the first major Community Reinvestment Act (CRA) regulatory reform in 25 years, the Office of the Comptroller of the Currency (OCC) released a final rule on implementation of the CRA that will weaken incentives for bank financing for affordable housing and community development (CD).

Many banks will stay involved for other reasons, but CRA will be less of a factor. The OCC’s action surprised most observers in two respects.