OCC, FDIC to Publish CRA Proposal; Official Explains Fed’s Alternative

Wednesday, January 8, 2020 - 9:15am

The Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation will publish their joint notice of proposed rulemaking for updated Community Reinvestment Act (CRA) regulations in Thursday’s Federal Register. The proposed CRA regulations were made public Dec. 12, 2019. Comments on the proposed rulemaking are due by March 9.

Meanwhile, Lael Brainard–a member of the board of governors of the Federal Reserve (Fed), the third agency assigned CRA oversight–said in a speech today at the Urban Institute in Washington, D.C., that the Fed opted out of the proposed rulemaking because it desired metrics more focused on local conditions and bank sizes. Brainard said the Fed is seeking metrics to evaluate CRA activity while remaining faithful to the core purpose of the CRA–suggesting separate retail and community development tests, with different metrics for different-sized banks. Brainard expressed hope for a “common set of interagency standards.”

For additional information, see Michael Novogradac’s  recent column and  blog post about the proposed CRA regulations.