Regulators propose overhaul to law governing how banks lend to low-and-middle income communities
The draft would raise the small-bank threshold to $1 billion in assets and reduce full CRA coverage to 86 banks, regulators said.
- On Friday, the OCC and the Federal Deposit Insurance Corporation proposed updating fair lending rules to increase scrutiny on community development grants while easing compliance for smaller financial institutions.
- Conceived in 1977 to combat redlining, the Community Reinvestment Act mandates banks lend to low-to-middle income neighborhoods; regulators have sought to modernize these rules for 30 years amid repeated legal and political obstacles.
- The proposal eases data collection for banks with under $10 billion in assets and raises the small bank definition to $1 billion, reducing full compliance requirements by 800 institutions to leave only 86 banks fully subject to the rules.
- Senator Elizabeth Warren and other Democrats on the Senate Banking Committee claimed the proposal would "gut" the law, while National Community Reinvestment Coalition CEO Jesse Van Tol said the changes would discourage rural lending.
- Uncertainty surrounds the rule because the Federal Reserve, which shares enforcement responsibility, did not issue a matching proposal; stakeholders now have a 60-day comment period before finalization.
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27 Articles
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The New York LedgerTrump regulators propose overhaul of 'weaponized' Community Reinvestment Act, say rule funded activist groups
Financial regulators in the Trump administration are proposing changes to a banking industry rule that critics say has been diverted from its original purpose to funneling funds from financial institutions to left-wing advocacy groups.The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation on Friday announced a proposed rule that would make changes to the Community Reinvestment Act (CRA). The law was enacted i…
Regulators propose overhaul to law governing how banks lend to income communities
The Trump Administration has announced changes to the Community Reinvestment Act, a law that requires regulators to document how well banks do in lending to low-to-middle income neighborhoods
Associated Press News
Regulators propose overhaul to law governing how banks lend to low-and-middle income communities
The Trump Administration has announced changes to the Community Reinvestment Act, a law that requires regulators to document how well banks do in lending to low-to-middle income neighborhoods.
US bank regulators propose fair-lending rule update
By Pete Schroeder WASHINGTON, July 31 (Reuters) - A pair of U.S. bank regulators proposed an update on Friday to some fair lending rules, which would place additional scrutiny on how banks dole out grants while exempting smaller firms from some requir...
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