American Banker, March 9, 2018: Will CRA finally get its makeover?
The Office of the Comptroller of the Currency appears to be taking the lead on an effort to release a proposal within weeks, according to sources familiar with the matter. The goal is to revamp a CRA supervision and enforcement process that critics say has become too complex and outdated.
Specifically, regulators are considering new metrics for CRA’s four grading categories — which are now “outstanding,” “satisfactory,” “needs to improve” and “substantial noncompliance” — as well as whether to expand the CRA assessment area and the types of loans that count toward a bank’s CRA score, these sources said.
Both industry representatives and advocacy groups are hopeful that this effort finally succeeds in bringing CRA policy more in line with business practices and community needs.
Community groups like the National Community Reinvestment Coalition have asked regulators to redefine assessment areas, and to broaden CRA policy beyond the banking industry to include mortgage companies, investment banks, credit unions and online lenders.
