OCC proposes rescission of 2020 CRA rulemaking
The OCC formally proposed to rescind the June 2020 rulemaking that amended regulations implementing the Community Reinvestment Act ("CRA") for national banks. The proposal would reinstate the 1995 rules adopted by the OCC, the Federal Reserve Board ("FRB"), the FDIC and the former Office of Thrift Supervision. The formal proposal follows a July announcement from Acting Comptroller of the Currency Michael J. Hsu of the decision to rescind the June 2020 rulemaking.
The OCC stated that the proposal would create consistency for insured depository institutions by aligning the OCC's CRA rules with current FRB and FDIC CRA rules. The OCC stated that the agencies are initiating a new interagency rulemaking to modernize the CRA rules.
As described in the Notice of proposed rulemaking, the June 2020 rules will remain in effect until the finalization of rules based on this proposal. The OCC explained that because the June 2020 rules included a transition provision, many aspects of the 1995 rules remain in effect and, therefore, the partial implementation of the June 2020 rules would limit disruption resulting from the reversion. The OCC proposed an effective date of January 1, 2022, for final rules based on this proposal that are to be published by December 1, 2021. The proposal does not include transition provisions, and the OCC invited comment on whether it should address transition issues.
Comments on the proposal must be submitted by October 29, 2021.
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