A federal judge on Friday granted an injunction against federal banking regulators’ Community Reinvestment Act final rule, as requested by ICBA and other groups in a legal challenge.
Court grants ICBA-requested injunction of CRA final rule
April 01, 2024 / By ICBA
A federal judge on Friday granted an injunction against federal banking regulators’ Community Reinvestment Act final rule, as requested by ICBA and other groups in a legal challenge.
A federal judge on Friday granted an injunction against federal banking regulators’ Community Reinvestment Act final rule, as requested by ICBA and other groups in a legal challenge.
Court Ruling: Judge Matthew Kacsmaryk of the U.S. District Court for the Northern District of Texas granted the injunction to extend the CRA final rule’s effective date—today, April 1—along with all other implementation dates. The effective dates will be extended for each day the injunction remains in place, pending the resolution of the lawsuit.
Joint Filing: ICBA, the Independent Bankers Association of Texas, Texas Bankers Association, Amarillo Chamber of Commerce, American Bankers Association, U.S. Chamber of Commerce, and Longview Chamber of Commerce filed the lawsuit in February, asking the court to vacate the final rule and grant a preliminary injunction while the court decides the merits of the case.
About the Filing: The complaint says regulators exceeded their statutory authority with the CRA final rule, in violation of the Administrative Procedure Act, and explains how the rule will limit future bank lending.
ICBA Response: In a joint statement following Kacsmaryk’s ruling, the groups welcomed the decision. “We look forward to litigating this matter to a final judgment,” they said.
Impact of New Rules: In a national news release after filing the suit, ICBA President and CEO Rebeca Romero Rainey said the unnecessarily complex evaluation could force banks to close branches or reduce product offerings. She said in a separate message to community bankers that the final rule ignores many community bank concerns, which is why ICBA must continue the fight.
Background: Released in October 2023, the CRA final rule was scheduled to take effect today while requiring bank compliance by Jan. 1, 2026. In a news release responding to the final rule in October, ICBA said the rule does not sufficiently differentiate between community banks and the nation’s largest institutions.
Outlook: Information and resources on the lawsuit are available on ICBA’s CRA webpage. ICBA will provide updates on the case as it proceeds.
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