OCC and FDIC to Propose New CRA Rules
July 28, 2026
According to recent reporting, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corp (FDIC) are preparing a Community Reinvestment Act (CRA) proposal without the Federal Reserve.
- The CRA is a 1977 anti-redlining law requiring regulators to grade banks on their lending and investment in the low- and moderate-income communities they serve, with poor grades jeopardizing mergers and branch expansion.
While the proposal is expected to be released in coming weeks, it had not yet reached the Office of Information and Regulatory Affairs (OIRA) for review by administration as of last Wednesday.
- The agencies are expected to raise the threshold for banks required to meet CRA requirements and to publish a list of qualifying activities, including affordable housing development and small business lending, that may reach beyond current criteria.
Background: In late 2023, the Biden administration overhauled the rules implementing the 1977 CRA Act, the biggest update since the 1990s. Given the growth in online banking, the revised rules modernized the CRA by evaluating banks in areas in which they do significant mortgage and small-business lending and not just where they have branches.
- After banking groups challenged the new regulations, a federal judge blocked the rule in 2024.
- Last summer, all three banking regulators said they would rescind the new rules and revert to the 1995 framework.
- However, the FDIC and OCC have decided instead to develop a new rule of their own.
Yes, but: While Fed Chair Kevin Warsh has not weighed in publicly on the CRA, during a recent Senate banking hearing he said that he wants to issue regulations jointly with other regulators where possible: