Treasury Recommends CRA Modernization

 

The Treasury Department has recommended that federal banking regulators significantly update how they implement the Community Reinvestment Act (CRA) to reflect sweeping industry changes and serve communities better. The next move is up to the three federal banking agencies.

Under the new leadership of Joseph Otting, the Office of the Comptroller of the Currency (OCC) has made modernizing CRA a top priority, which it has promised to start soon by publishing an advance notice of proposed rulemaking (ANPR), perhaps in concert with the Federal Reserve Board (FRB) and the Federal Deposit Insurance Corporation (FDIC). CRA policies are normally set jointly by the three banking agencies to promote consistency. After the ANPR is published and public comments are received and reviewed, a proposed rule would be the next step and then, following another round of comments, a final rule.