On April 3, 2018, the Department of Treasury released recommendations to “modernize” the Community Reinvestment Act of 1977 (“CRA”). Treasury’s recommendations include:
-
updating the definitions of geographic assessment areas to reflect the changing nature of banking arising from changing technology, customer behavior, and other factors;
-
increasing clarity and flexibility of CRA examinations to increase transparency and effectiveness of CRA rating determinations;
-
improving the examination process to increase timeliness of evaluations and increasing accountability for banks’ planning of their CRA activity; and
-
incorporating performance incentives to better serve the CRA’s intended purpose of encouraging banks to meet the credit and deposit needs of their communities.
Click here to read an expanded synopsis of this topic.
[View source.]
