Modernizing anti-redlining community reinvestment rules to clarify what counts for credit under the regulations, updating where activity qualifies, making evaluations more objective, and reporting results in a more timely and transparent manner are all on the table, the comptroller of the currency said last week.
Joseph Otting, who as comptroller heads up the regulator of national banks, the Office of the Comptroller of the Currency (OCC), said following a tour of Atlanta neighborhoods that the OCC said have benefitted from rules implementing the Community Reinvestment Act (CRA) that his agency continues to work with other federal banking agencies to propose a “modern CRA framework.” Otting made the comments Aug. 9.
“Today, we saw what great things can be accomplished when banks, civil rights organizations, nonprofit groups, and local advocates work together to meet the needs of their communities,” Otting said. “We also discussed how current CRA regulations hamstring efforts that could revitalize these areas and bring even more lending, investment, and service to where they are needed most.”
In a release, the OCC said Otting would continue to meet with stakeholders and visit areas throughout the country to view CRA success stories himself and hear directly how regulators can make CRA work better while fulfilling the statutory purpose of the CRA and rules.