FDIC and OCC Propose to Modernize Community Reinvestment Act Regulations

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On Dec. 12, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) announced a proposal to modernize the agencies' regulations under the Community Reinvestment Act (CRA) that have not been substantively updated for nearly 25 years.

The proposed rules are intended to address digital banking changes and to further encourage lending to low- and moderate-income borrowers (LMI) living in underserved communities, such as rural areas and tribal lands far removed from urban centers where bank branches are concentrated. The CRA was enacted in 1977 to encourage insured depository institutions to help meet the credit needs in their local communities, including LMI neighborhoods.

The proposed CRA rules would apply to federally insured depository institutions supervised by the FDIC and OCC, which conduct approximately 85% of all CRA activity. Unlike previous CRA regulations, the Federal Reserve Board is not part of this rulemaking. There will be a 60-day public comment period following publication in the Federal Register.

NAHB will review the proposal in consultation with our members. Interested members may submit feedback on the proposal to Becky Froass or Michelle Kitchen at NAHB.

View the joint FDIC and OCC press release.

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