June 6, 2022

Banking Agencies Solicit Comments on Proposed Expansion of CRA Regulations

The Federal Reserve Board, the FDIC and the OCC solicited comments on proposed amendments to the Community Reinvestment Act regulations. Comments are due by August 5, 2022, and the notice was published in the Federal Register.

As previously covered, the amendments would:

  • expand access to credit, investment and basic banking services in low- and moderate-income ("LMI") communities through promotion of community engagement and financial inclusion, with an emphasis on smaller value loans and investments;

  • provide for banks to be evaluated in locations where they do not have a physical branch given the use of online and mobile banking and branchless banking;

  • provide a metrics-based approach to retail lending and community development financing evaluations with a specific focus on LMI, underserved and rural communities;

  • give smaller banks the option to continue to be evaluated under the old framework or use the new proposed modified framework; and

  • maintain a unified approach to regulation among the issuing agencies and implement extensive feedback from stakeholders and market participants.