American Banker: BankThink Grading Treasury’s CRA reform memo: ‘Incomplete’

American Banker, April 12, 2018: BankThink Grading Treasury’s CRA reform memo: ‘Incomplete’

The Treasury Department’s long-awaited memo on reforming the Community Reinvestment Act was long on glittering generalities but sadly short on specifics, which probably explains why the report punted the real job of making reforms to the regulators. Putting on my “CRA Professor” hat, I would grade their effort as “Incomplete.”

While the Treasury addressed several important issues, these are the top five critical omissions from its CRA reform playbook:

  • CRA requirement for credit unions
  • Consolidation of CRA regulatory oversight in one agency
  • Economic incentives for earning an Outstanding CRA rating
  • Specific quantitative guidelines on key CRA metrics
  • Specific assessment area recommendations for nationwide banks

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