Federal Reserve Releases Plan to Reform Community Reinvestment Act

Housing Finance
Published

The Federal Reserve on Monday issued an Advance Notice of Proposed Rulemaking (ANPR) that invites public comment on an approach to modernize the regulations that implement the Community Reinvestment Act (CRA).

The CRA requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.

Of note, the Office of the Comptroller of the Currency issued a final rule on CRA earlier this year, but the Federal Deposit Insurance Corp. did not finalize the rule and the Federal Reserve did not sign on. This was unusual for the bank regulators to issue different proposals. Now, the Federal Reserve has issued its own proposal.

In a press release, the Federal Reserve says that public comment on the ANPR will assist the agency in refining CRA modernization proposals to:

  • Strengthen CRA's core purpose of meeting the wide range of LMI banking needs and addressing inequities in financial services and credit access;
  • Address changes in the banking industry;
  • Promote financial inclusion by including special provisions for activities in Indian Country and underserved areas, and for investments in Minority Depository Institutions and Community Development Financial Institutions;
  • Bring greater clarity, consistency, and transparency to performance evaluations that are tailored to local conditions;
  • Tailor performance tests and assessments to account for differences in bank sizes and business models;
  • Clarify and expand eligible CRA activities focused on LMI communities;
  • Minimize data burden and tailor data collection and reporting requirements;
  • Recognize the special circumstances of small banks in rural areas; and
  • Create a consistent regulatory approach.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Member Benefits

Aug 22, 2025

NAHB Members See Big Savings in 2025 with New Discounts on Business Tools, Automobiles

Whether you're looking to cut business costs or make smart personal purchases, the NAHB Member Savings Program offers significant savings for members. And in 2025, NAHB has unveiled several new savings opportunities from leading companies including Best Buy, Ford, Mercedes-Benz, QuickBooks and RAM Trucks.

Workforce Development | HBA | Codes and Standards | Sustainability and Green Building

Aug 21, 2025

Santa Fe Students Build ‘Tiny’ Homes to Test Energy Efficiency Codes

To benefit the community and provide students hands-on construction experience, the Santa Fe Area Home Builders Association recently completed the Northern New Mexico Ice Box Challenge.

View all

Latest Economic News

Economics

Aug 22, 2025

Slight Gains for Townhouse Construction

Townhouse construction expanded more than 9 percent on a year-over-year basis per data from the second quarter of 2025.

Economics

Aug 21, 2025

Existing Home Sales Rise in July

Existing home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).

Economics

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).