WASHINGTON – The Office of the Comptroller of the Currency made good on a promise to rescind the agency’s unilateral reforms of the Community Reinvestment Act.
The agency on Wednesday proposed to revert its CRA regulations to the previous framework in effect since 1995.
The rescission proposal, with comments due by Oct. 29, would undo virtually the entire rule finalized under the Trump administration and former Comptroller Joseph Otting in 2020. It would also further align the OCC with the CRA rules enforced by the other bank regulators in advance of their attempting to develop an interagency overhaul of the anti-redlining law.
Acting Comptroller Michael Hsu announced earlier this year that the OCC planned to rescind the rule in some fashion in order to give the interagency process a second chance.
“This would put us back in alignment with the Fed and FDIC,” Hsu said in an interview Wednesday.
In its proposed rulemaking, the agency said the framework “would be substantively identical to the 1995 Rules.”
“This would put us back in alignment with the Fed and FDIC,” said acting Comptroller Michael Hsu.
“Consequently,” it said, “all definitions, performance tests and standards, and related data collection, recordkeeping, and reporting requirements would revert to those in place prior to the issuance of the June 2020 Rule.”