Regulators hit reset on CRA reform, commit to joint rulemaking
Federal bank regulators committed to rescinding the Trump-era reform of the Community Reinvestment Act, announcing a second attempt at an interagency rulemaking to modernize the anti-redlining law.
The Office of the Comptroller of the Currency announced on Tuesday that the agency would unwind the CRA overhaul spearheaded by former Comptroller Joseph Otting. The OCC finalized the rule last year and partially implemented the framework despite a lack of support from the other regulatory agencies.
The widely anticipated move under acting Comptroller Michael Hsu marks a new chapter in what has been, up to now, a deeply contentious process that began almost three years ago. Banks and other stakeholders had urged the OCC to rescind its unilateral rule and resume talks over an interagency approach.