Federal agencies say they are ready to start writing a proposal to modernize the Community Reinvestment Act, and their outlook appears to be increasingly in sync with community bank priorities.
As reported by American Banker
, they agencies have signaled that they agree on the need for clearer and more consistent CRA oversight. Further, they are backing away from the idea of a single metric for measuring CRA performance.
Both initiatives are top ICBA priorities in the debate over CRA reform following the OCC’s August 2018 advance notice of proposed rulemaking. ICBA’s November letter to the OCC
called on regulators to improve CRA consistency and transparency and carefully consider the ancillary effects of any metric-based performance test, among other recommendations.