November 19, 2018, marked the end of the comment period for the advance notice of proposed rulemaking (Notice) issued by the Office of the Comptroller of the Currency (OCC) to solicit ideas for transforming and modernizing the Community Reinvestment Act (CRA) regulatory framework. The OCC’s Notice is just one of many recent attempts by both lawmakers and regulators to renew focus on, and jumpstart momentum for, CRA reform.
Although there is broad consensus among the regulatory principals that CRA reform is needed, the question of how to reform the CRA regulatory framework remains open. This article first analyzes the approach to reforming the CRA contained in the OCC’s Notice. It then discusses current dynamics among the CRA regulators to the extent they are publicly known, pointing out consistencies (and inconsistencies) among the OCC’s approach in the Notice and the approaches that at least some at the Federal Reserve and FDIC seem to prefer. The article concludes with a brief outlook on what we expect to happen next with respect to CRA reform.