Pub. 11 2021-2022 Issue 3

coloradobankers.org 22 T o modernize the agency’s regulations under the Community Reinvestment Act (CRA), the Office of the Comptroller of the Currency (OCC) published a final rule (June 2020 rule) in the Federal Register June 5, 2020. Previous to this modernization, the OCC had chosen to partner with the other federal regulators to pursue a shared CRA framework for all covered financial institutions. The June 2020 rule was designed to: (i) expand and make clearer “qualifying activities” (including bank lending and investing); (ii) revise the delineation of “assessment areas”; (iii) provide more “consistent and objective” methods for assessing CRA performance; and (iv) mandate “timely and transparent” reporting. On July 20, 2021, the OCC announced it will propose to rescind the agency’s May 2020 final rule overhauling the CRA, signaling the OCC’s intention to collaborate with the Federal Reserve Board (Fed) and the Federal Deposit Insurance Corporation (FDIC) on a separate joint rulemaking. The announcement follows the completion of a review undertaken by acting Comptroller Michael Hsu. Comptroller Hsu stated that although “the OCC deserves credit for taking action to modernize the CRA,” the adoption of the final rule was “a false start” in attempting to overhaul the regulation. According to Comptroller Hsu, the OCC intends to work with the Fed and the FDIC to develop a joint Notice of Proposed Rulemaking and build on an Advance Notice of Proposed Rulemaking issued by the Fed last September. The federal agencies issued an interagency statement noting that they have “broad authority and responsibility for implementing the CRA” and that “[j]oint agency action will best achieve a consistent, modernized framework across all banks to help meet the credit needs of the communities in which they do business, including low- and moderate-income neighborhoods.” The OCC explained that the additional time it will take to reconsider the June 2020 rule will (i) enable banks to more flexibly deploy their resources for COVID-19 pandemic-related purposes, (ii) allow the OCC to consider additional input from stakeholders, (iii) provide the OCC with more time to assess issues and questions that have By Chris W. Bell, JD Sr. Hotline Advisor and Associate General Counsel Compliance Alliance The OCC Reconsiders Going It Alone on CRA