Federal Bank Regulator Invites Comments on Possible Changes to Community Reinvestment Act
Changes Could Weaken Law Serving Lower-income Communities
FOR IMMEDIATE RELEASE: August 28, 2018
CHICAGO, IL –The Office of the Comptroller of the Currency (OCC) today released an Advanced Notice of Proposed Rulemaking (ANPR) with the intent to modernize the way in which banks are regulated for compliance with the Community Reinvestment Act (CRA). The CRA, a landmark civil rights law born from the work of Chicago activists such as Gale Cincotta, requires banks to meet the credit and financial needs of low- and moderate-income people and communities.
“We are very concerned that the regulators are attempting to weaken the CRA by broadening the range of bank activities that count for CRA credit and by imposing new metrics for evaluation of banks’ CRA performance that would dilute the impact of local community input and local community outcomes,” said Dory Rand, President of Woodstock Institute.
The OCC issued the ANPR independently of the other two bank regulators (the Federal Deposit Insurance Corporation (FDIC) and Federal Reserve Board) charged with enforcing the CRA. It is expected that the OCC, and possibly the other regulators, will propose specific rules incorporating changes to the CRA after the 75-day comment period on the ANPR concludes.
Woodstock Institute and its allies at the National Community Reinvestment Coalition plan to engage community groups in submitting public comments in support of keeping the CRA strong and holding banks accountable for meeting local community needs.