Will the regulators speak with one voice on CRA reform?
By Rachel Witkowski
The Office of the Comptroller of the Currency has been leading the charge on revamping the Community Reinvestment Act, but a big unknown is whether the other two regulators charged with carrying out the law are committed to moving ahead as swiftly on a reform plan. For months, industry and consumer groups have expressed optimism that the agencies are serious about modernizing the 40-year-old law. In February, Comptroller of the Currency Joseph Otting said regulators planned to have a CRA reform proposal out for comment by the end of March. …“The CRA needs a complete makeover, particularly with regard to what assets count as reinvestment credits, and how banks are judged for meeting those standards,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics. “But judging banks, especially by a single number, is a complex process and it remains to be seen whether or not the” incoming proposed “changes leads to a much more meaningful reinvestment or just another set of checking the boxes.”