CBA, Financial Trades Urge OCC to Formally Delay or Withdraw CRA Rule

CBA, Financial Trades Urge OCC to Formally Delay or Withdraw CRA Rule

WASHINGTON – Consumer Bankers Association, along with nine other financial services trades, this week wrote Office of the Comptroller of the Currency (OCC) Acting Comptroller Blake Paulson urging the agency to formally withdraw its June 2020 Community Reinvestment Act (CRA) Rule or delay its January 2023 compliance date by at least two years due to the changes in Administration and the OCC leadership. The letter recognizes withdrawal may require public notice and comment and reiterates the importance of a joint rulemaking effort across regulatory agencies.

“To date, most banks have conducted preliminary preparations to implement the June 2020 Rule; they have not yet dedicated the full scope of resources that will be needed to create the technological infrastructure necessary to comply with the Rule and its new data reporting requirements,” the associations wrote.

“However, as budget season and the 2023 compliance date draw near, CRA personnel will be required to allocate significant funds and other resources to begin building new technology systems, hiring consultants, assembling project management teams, and retooling CRA programs. These will be significant expenditures that will be wasteful if the OCC significantly modifies the Rule as part of a future interagency rulemaking.”

A full copy of the letter is available here.

In addition to CBA, the letter was signed by the American Bankers Association, Association of Military Banks of America, Bank Policy Institute, Community Development Bankers Association, Housing Policy Council, Independent Community Bankers of America, Mortgage Bankers Association, National Association for Affordable Housing Lenders and National Bankers Association.

BACKGROUND: Through CRA, banks are currently investing nearly $500 billion annually into communities across the country. Modernizing CRA will give banks more clarity as to which investments will count – allowing for them to do more, not less. It will also help ensure CRA investments reach those communities most in need.

More information on the importance of modernizing CRA is available here.

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.