OCC & FDIC Extend CRA Proposal Comment Period

On February 19, 2020, the OCC and FDIC extended the public comment period for proposed changes to the regulations implementing the Community Reinvestment Act (CRA) until April 8, 2020.

The CRA proposal was released on December 12, 2019, in attempts to modernize the regulations under the CRA. The proposed regulations are intended to increase bank activity in low- and moderate-income communities where there is significant need for credit, more responsible lending, and greater access to banking services. The proposal will clarify what qualifies for credit under the CRA, enabling banks and their partners to better implement reinvestment and other activities that can benefit communities. The agencies will also create an additional definition of "assessment areas" tied to where deposits are located—ensuring that banks provide loans and other services to low- and moderate-income persons in those areas.

As the Federal Reserve did not participate in this proposal, the proposed CRA regulations would presumably apply to just federally insured depository institutions supervised by the FDIC and OCC, which conduct approximately 85 percent of all CRA activity. That said, the Federal Reserve has stated that it may join in on the final rulemaking, so all regulated institutions are encouraged to submit comments.

The extension of the rulemaking can be found here.

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