NAHB to Weigh In on Updating Community Reinvestment Act Regulations

Filed in Codes and Regulations, Housing Finance by on August 30, 2018 0 Comments

regulationsThe Office of the Comptroller of the Currency has announced it is seeking comments on modernizing Community Reinvestment Act (CRA) regulations and NAHB intends to weigh in.

The CRA was enacted in 1977 to encourage insured depository institutions to help meet the credit needs of their communities, including low- and moderate-income (LMI) neighborhoods, consistent with the safe and sound operation of such banks.

In a press release announcing its intent to seek ways to modernize the regulations that implement the CRA, Comptroller of the Currency Joseph Otting said: “Stakeholders of all kinds have spoken up, calling the current regulatory framework for the CRA outdated, complex, and burdensome. We are issuing today’s ANPR (Advanced Notice of Proposed Rulemaking) to provide an opportunity for all stakeholders to provide their comments on how to improve our approach to the CRA so that insured depository institutions continue to meet the credit needs of their communities.”

Comments are being solicited on a number of questions regarding improvements to the CRA regulations related to:

  • Increasing lending and services to people and in areas that need it most, including in LMI areas;
  • Clarifying and expanding the types of activities eligible for CRA consideration;
  • Revisiting how assessment areas are defined and used;
  • Establishing metric-based thresholds for CRA ratings;
  • Making bank CRA performance more transparent;
  • Improving the timeliness of regulatory decisions related to CRA; and
  • Reducing the cost and burden related to evaluating performance under the CRA.

Comments will be accepted for 75 days after this notice is published in the Federal Register and NAHB will work with our members to respond.

For more information, contact Becky Froass at 800-368-5242 x8529.

Facebooktwitterlinkedinmail

Tags: , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement