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05/18/2021 | Press release | Distributed by Public on 05/18/2021 21:34

CBA Statement on OCC Decision to Reconsider CRA Rule

CBA Statement on OCC Decision to Reconsider CRA Rule

Hunt: 'With a change in OCC leadership, and because of the impending deadlines, delaying the newly finalized rule is critical'

WASHINGTON - Consumer Bankers Association President and CEO Richard Hunt today issued the following statement after the Office of the Comptroller of the Currency (OCC) announced it will reconsider the June 2020 final Community Reinvestment Act (CRA) rule and will not object to suspension of implementation of provisions with a compliance date of January 1, 2023, or January 1, 2024, under the 2020 CRA rule:

'CRA has not been modernized since the shared line rotary phone days, and it is needed to reflect advancements in the marketplace. The OCC has demonstrated a path forward, and we hope regulators and politicians put politics aside and find common ground to best serve communities across the nation. However, with a change in OCC leadership, and because of the impending deadlines, delaying the newly finalized rule is critical. Banks are already allocating significant resources to comply with the rule, and these expenditures will be wasted if it is modified as part of a future interagency rulemaking.'

Today, the OCC also announced it does not plan to finalize the December 4, 2020, proposed rule that requested comment on an approach to determine CRA evaluation benchmarks, thresholds, and minimums under the June 2020 rule. The agency is also discontinuing the CRA information collection pursuant to the Paperwork Reduction Act notice published in the Federal Register in December 2020.

BACKGROUND:

Earlier this month, Consumer Bankers Association, along with nine other financial services trades, 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.

The full OCC bulletin released today 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.