3.11.22
The American Banker reports that regulators are expected to issue a long-anticipated proposal for modernizing the framework under the Community Reinvestment Act (CRA) as early as this month. In July 2020, the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency announced they would undertake an interagency rulemaking effort to modernize the CRA. This came following acting OCC Comptroller Michael Hsu’s decision to rescind the rule after changes were introduced in 2020 under the previous administration. After receiving public comments, the Biden administration is aiming to finalize the CRA rule by the end of the year. Officials anticipate reform of the CRA will encourage banks to lend more to low-income communities aiming to address economic disparities.