ICBA to OCC: Take moderate approach to CRA rescission

ICBA advocated a moderate approach to the OCC’s rescission of its 2020 Community Reinvestment Act final rule and reinstatement of the 1995 interagency CRA rule.

Potential Disruption: While ICBA continues to support the recission of the 2020 rule—as the OCC has proposed—it said in a comment letter that an outright return to the 1995 rule would be disruptive to banks that updated their business practices or compliance systems due to the 2020 rule.

ICBA Position: Instead, ICBA encouraged the OCC to:

• Issue a final rule that generally adopts the portions of the OCC’s 2020 rule that had a compliance date of Oct. 1, 2020.

• Reinstate the 1995 rule for the 2020 rule provisions for which the compliance dates have not yet occurred.

Benefits: ICBA said this approach would allow banks to continue to use newly implemented thresholds, qualifying activities criteria, strategic plans approved under the 2020 rule, and updated notices and public files.

Joint Letter: In addition to its comment letter, ICBA and other financial services groups also submitted a joint letter with similar recommendations.