Community Reinvestment Act

Community Reinvestment Act: Revisions to Impact of Evidence of Discriminatory or Other Illegal Credit Practices on Community Reinvestment Act Ratings


On August 15, 2018, the Office of the Comptroller of the Currency released guidance “which clarifies [its] policy for applying the regulatory framework to determine the effect of evidence of discriminatory or other illegal credit practices on the Community Reinvestment Act (“CRA”) rating of a national bank, federal savings association, or federal branch.” Release.

Community Reinvestment Act Regulations: Notice of Proposed Rulemaking


On September 22, 2017, multiple government agencies announced “… a proposed rule that would revise their regulations implementing the Community Reinvestment Act (CRA) (12 USC 2901 et seq.). The proposed rule would amend the CRA regulations’ definitions of ‘home mortgage loan’ and ‘consumer loan’ to conform to recent changes made by the Consumer Financial Protection Bureau to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The proposed rule would also amend the CRA public file content requirements for consistency with Regulation C, make technical amendments to remove cross references related to the proposed amended definitions, and remove an obsolete reference to the Neighborhood Stabilization Program.” Release.

OCC to Provide Extended Notice for Scheduled CRA Evaluations


On May 31, 2017, the Office of the Comptroller of the Currency (“OCC“) announced it will extend the notification timeline for upcoming Community Reinvestment Act (“CRA“) evaluations. Beginning with the third quarter notification for 2017, the OCC will post the list of financial institutions for which CRA will be coming due over the next two quarters, to allow more time for interested parties to review and provide meaningful comments on a financial institution’s performance before CRA examination. The current regulations require the OCC to publish the quarterly CRA evaluation schedule at least 30 days before the beginning of each quarter. Even though the OCC will publish two quarters of upcoming CRA evaluations, the schedule is subject to change. Release.

Annual Asset-Size Threshold Adjustments for Small and Intermediate Small Banks


On December 29, 2016, the Office of the Comptroller of the Currency, the Federal Reserve System and the Federal Deposit Insurance Corporation amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” The adjustment is based on an annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers. As a result of the 0.84 percent increase for the period ending in November 2016, “small bank” or “small savings association” means “an institution that, as of December 31, 2016, of either of the prior two calendar years, had assets of less than $1.226 billion,” and “intermediate small bank” or “intermediate small savings association” means “a small institution with assets of at least $307 million as of December 31 of both of the prior two calendar years and less than $1.226 billion as of December 31, 2016, of either of the prior two calendar years.” Press Release. Rule.

Three Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions

On December 19, the Fed, FDIC and OCC announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank and intermediate small savings association under the Community Reinvestment ActRelease.

Proposed Revisions to Interagency Q&As on Community Reinvestment

On March 18, the Fed, FDIC and OCC requested comment on proposed revisions to “Interagency Questions and Answers Regarding Community Reinvestment.”  The Q&As provide guidance on the Community Reinvestment Act regulations.  The proposed amendments would: (i) clarify how the agencies consider activities that benefit a statewide or regional area that includes an institution’s assessment area; (ii) provide guidance on investments in nationwide funds; (iii) clarify the consideration of certain community development services; (iv) address the treatment of qualified investments to organizations that use only a portion of the investment to support a community development purpose; and (v) clarify that community development lending should be evaluated so that it has a positive, neutral or negative effect on the large institution lending test rating.  Comments are due within 60 days after publication in the Federal Register.  Interagency Release.