Checklist: hopes and bottlenecks on the reform of the CRA

WASHINGTON – Banking regulators have not released a formal plan to update the Community Reinvestment Act, but a preliminary list of questions on the reform effort issued by the Office of the Comptroller of the Currency produced a treasure trove of comments audience to guide their deliberations.

The BCC received over 1,300 comments on its advance notice of proposed regulations requesting responses on how to expand the 1977 ARC, which ranks banks on lending to low to moderate income communities in their networks. branches. The comment period ended on November 19.

Opinions on the proposed regulatory notice vary. Many in the industry have praised the agency’s move, which insists it was simply trying to get feedback. But some stakeholders say the agency’s questions reflected its political orientations. For example, some critics have suggested the agency appears to support expanding the ARC’s assessment areas, but observers fear this will dilute resources in communities most in need of the law.

The letters of comment as well as the interviews with those who follow the agencies’ effort reflect an intense debate between different parties focused on ARC, which will only intensify as agencies move forward in the process. developing a plan.

Among the comment letters, many industry players supported the expansion of ARC’s valuation areas, state authorities warned regulators not to reduce oversight of discriminatory lending practices, and consumer groups have urged federal agencies to avoid any plans that result in lost low-income loans and investments. and moderate income communities.

Here are the main themes raised in the comment letters.

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