Yesterday, the Prudential Banking Agencies jointly issued a proposal to rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and replace it with the prior CRA regulations that were originally adopted by the agencies in 1995. They indicated in the 227 page proposal that “technical amendments” were included. If adopted, the proposal would restore the 1995 CRA framework for all Banks, nullify pending litigation, and limit the regulatory burden the industry identified in Modernization. The 1995 rule captures the essence of the original purpose of CRA which is to ensure Banks serve their communities.
While the 2023 final rule was originally set to be implemented in 2026 pending legal action restricted the rule from taking effect. Which prompted all agencies to continue applying the 1995 regulations.
As with all Proposals, Compliance Resource is here to help. We will be reviewing and providing information on all the “technical amendments.”
Please stay tuned for insight into any updates.