Policy Alert: Notice of Proposed Rulemaking Announced for Community Reinvestment Act

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Policy Alert: Notice of Proposed Rulemaking Announced for Community Reinvestment Act

May 6, 2022

 
On May 5th, the Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking (NPR) to the Community Reinvestment Act (CRA). The CRA was signed into law in 1977 and is a seminal piece of legislation to address inequities in access to credit for low- and moderate-income individuals and communities. After receiving substantial feedback from stakeholders, the Board, the FDIC, and the OCC have issued a notice of proposed rulemaking that would amend their regulations implementing the CRA.

The agencies' objectives include updating the CRA regulations to strengthen the achievement of the core purpose of the statue, and to adapt to changes in the banking industry, including the expanded role of mobile and online banking. The notice also includes that the agencies are proposing a new definition of qualifying activities in "Native Land Areas". This new definition can be found on pages 96-103 of the Federal Register Notice  The OCC, Federal Reserve Board, and FDIC will be hosting a webinar to provide an overview of the notice next week on Wednesday, May 11th 3:00 PM Eastern Time.

The deadline for submitting comments on the rulemaking is August 5th, 2022. The Board previously published for public comment an advance notice of proposed rulemaking (ANPR) in September 2020 to solicit public input regarding updating the Board's CRA regulatory and supervisory framework.

Resources:
Federal Reserve Board Announcement
Federal Register Notice
Proposed Rulemaking Factsheet
September 2020 Meeting Agenda and Information
Necessity of CRA Reform by Governor Brainard
Community Reinvestment Act Notice Webinar

 
For any other questions or concerns, please contact Nicholas Lovesee, Senior Policy Advisor, at Nicholas@nafoa.org

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