Skip to main content

Regulators Extend Comment Period for CRA Changes

Feb 20, 2020
Photo credit: Getty Images/Aliaksandr Bukatsich

The Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC) have extended the public comment period for proposed changes to the rules implementing the Community Reinvestment Act (CRA) until April 8.
 
The agencies their proposal to modernize the regulations under the CRA last December and set a 60-day comment period following formal publication in the Federal Register on Jan. 9. The FDIC and OCC announced a 30-day extension of the comment period, only noting in a press statement that they felt the extra time for input was “appropriate.”
 
According to the regulators, the proposed rules “are intended to increase bank activity in low- and moderate-income communities” by clarifying what “qualifies for credit under the CRA, enabling banks and their partners to better implement reinvestment and other activities that can benefit communities.” The agencies added the new rules would create an updated definition of "assessment areas" tied to where deposits are located.
 
The National Housing Conference (NHC), which previously expressed a need for a longer period of public comment, welcomed the extension.
 
“It’s in the best interest of regulators to not rush modernizing CRA,” said NHC President and CEO David Dworkin. “It’s more important to get it right. NHC has dozens of our members working on a detailed response, along with a team from Nixon Peabody and Georgetown Law School. If the OCC and FDIC really want to improve CRA without gutting it, they need to take this comment period and the resulting feedback very seriously. Extending the comment period is an important first step.”

 
About the author
Published
Feb 20, 2020
New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done

Allowing The ‘Dogs’ To Bark

More lenders need to know about 203(k) financing