Pub. 13 2018-2019 Issue 3

WWW.NEBANKERS.ORG 12 T WENTY-FIVE PAGES PUBLISHED ON August 28th by the Office of the Comptroller of the Currency (OCC) may finally kick-off what bankers and regulators have been anticipating since early last year: Modernizing the Community Reinvestment Act of 1977 (CRA). On August 28, 2018, the OCC is - sued an advance notice of proposed rule- making (ANPR) seeking comment on the best ways to update the regulatory frame- work implementing the CRA. But how to modernize the CRA has long triggered intense debate and disagreement among all stakeholders as banks favor expand- ing CRA assessment areas and consumer groups worry that a broad expansion would simply make it easier for banks to score high CRA grades. Most agree, however, that the CRA is out-of-date and that the majority of ideas for reform are not controversial, including modernizing it by recognizing the growing importance of internet banking and the declining importance of physical branch locations. This process started with the OCC’s revised policy 1 on fair lending downgrades of CRA ratings issued October 2017. This revision, released by then-acting Comp- troller Keith Noreika, eased certain CRA regulatory burdens for OCC-regulated COUNSELOR’S CORNER Community Reinvestment Act Modernization: A Touch Up or a Total Overhaul? We have a once-in-a-generation opportunity to build upon that legacy of community development and make the Community Reinvestment Act work better for everyone. — Joseph M. Otting, Comptroller of the Currency, August 30, 2018 Jeff Makovicka, Kutak Rock LLP