Bank News Now, February 7, 2021, Court rules lawsuit challenging CRA rule can proceed
A judge ruled that a lawsuit seeking to invalidate recent reforms of the Community Reinvestment Act can proceed.
The National Community Reinvestment Coalition, the California Reinvestment Coalition and Democracy Forward sued the OCC in June, alleging that the agency’s CRA reform rule would “gut” banks’ obligations to invest in their communities. They also argued that the rulemaking process violated the Administrative Procedure Act.
The OCC “failed to publish research it claimed supports issuance of the rule and data obtained in a request for information and failed to provide any substantive records of calls [former] Comptroller of Currency Joseph Otting had with CEOs of 17 large banks,” Westmore wrote.