WASHINGTON–The Office of the Comptroller of the Currency (OCC) is looking for ways to overhaul the Community Reinvestment Act (CRA), a move being welcomed by the banking industry.
The OCC has published an advance notice of proposed rulemaking (ANPR) on its website inviting public comment on ways to transform or modernize the regulations that implement CRA.
In the ANPR, the OCC said it is seeking ideas on “how to better achieve the statute’s original purpose, encourage increased lending and investment where it is needed most, and reduce the burden associated with reporting and evaluating CRA performance.”
The ANPR is now out for a 75-day comment period.
The OCC said that as part of the ANPR it is seeking ways to encourage increased lending and services to people and in areas that need it most, including in low- and moderate-income areas.
The Community Reinvestment Act has long been a thorn in the side of bankers. Credit unions are largely exempt, but not in all states, from complying with CRA.
In a statement, Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, said, “As the Office of the Comptroller of the Currency looks for ways to modernize the Community Reinvestment Act to keep pace with our changing banking environment, ICBA and the nation’s community bankers continue to advocate improvements to CRA consistency and transparency.
“ICBA urges regulators to be more transparent during the examination process, ensure examination and supervision are consistent across cycles and among agencies, and allow assessment areas to be identified and delineated by community banks rather than the agencies so that lenders can plan accordingly,” Romero Rainey continued.