Community Reinvestment Act Reform and Modernization: OCC Request for Public Comment
On August 28, the Office of the Comptroller of the Currency (OCC) issued an Advance Notice of Proposed Rulemaking (ANPR) for the Community Reinvestment Act (CRA). The ANPR was originally anticipated to be an interagency product, produced jointly with the Federal Reserve and the FDIC. While the OCC did issue the ANPR on its own, the substance of all comments received in response to the ANPR will be shared with the Fed and the FDIC. It is critically important that all banks, regardless of their charter, submit comments in response to the ANPR.
The OCC’s expressed goal is “to obtain additional public input on how to revise the CRA regulations to encourage more local and nationwide community and economic development – and thus promote economic opportunity – by encouraging banks to tend more to low-to—moderate areas, small businesses, and other communities in need of financial services.”
The OCC is inviting comments from stakeholders in the following six areas:
- Transforming the current approach to performance evaluations;
- Developing a metric-based framework;
- Redefining how “communities” and “assessment areas” are defined;
- Expanding CRA-qualifying activities;
- Refining recordkeeping and reporting; and
- “Other ways” to improve the CRA regulatory framework.
Specifically, the OCC has propounded 31 questions to which it is asking stakeholders to respond. Banks are encouraged to respond to as many of the questions as possible and are requested to provide specific bank experiences/examples, where feasible. A copy of the OCC’s press release announcing the ANPR can be viewed here, and a copy of the 31 questions, can be found here. The deadline to submit comments is November 19, 2018.
The CBA is preparing a “template” response to the ANPR to assist members in preparing their own responses, which we will distribute to members once available.