Author: W. Brad Washburn, CRCM, CAMS
On July 16, 2025, the federal bank regulatory agencies — the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) — jointly issued a proposal to rescind the Community Reinvestment Act (CRA) final rule that was adopted in October 2023. In its place, the agencies propose to reinstate the prior CRA regulations that were originally issued in 1995, with certain technical amendments.
Background and Purpose
The 2023 CRA final rule has not yet taken effect and is currently subject to ongoing litigation. The newly issued proposal aims to provide clarity and consistency for stakeholders, reduce regulatory burdens for institutions, and maintain the foundational goals of the CRA — ensuring that banks continue to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods.
Public Comment Period
The agencies are seeking public comment on the proposed rule. Interested parties have until August 18, 2025, to submit their feedback. Review the proposed rule at the following link:
community-reinvestment-act-regulations-notice-proposed-rulemaking.pdf (SECURED)
What’s Next?
The agencies have emphasized that they will continue to apply the 1995 CRA regulations in the interim. We will closely monitor developments and provide updates as further information becomes available or if the final rule is issued.
Stay tuned to our blog for ongoing coverage of CRA developments and regulatory changes affecting the banking industry.
On July 16, 2025, the federal bank regulatory agencies — the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) — jointly issued a proposal to rescind the Community Reinvestment Act (CRA) final rule that was adopted in October 2023. In its place, the agencies propose to reinstate the prior CRA regulations that were originally issued in 1995, with certain technical amendments.
Background and Purpose
The 2023 CRA final rule has not yet taken effect and is currently subject to ongoing litigation. The newly issued proposal aims to provide clarity and consistency for stakeholders, reduce regulatory burdens for institutions, and maintain the foundational goals of the CRA — ensuring that banks continue to meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods.
Public Comment Period
The agencies are seeking public comment on the proposed rule. Interested parties have until August 18, 2025, to submit their feedback. Review the proposed rule at the following link:
community-reinvestment-act-regulations-notice-proposed-rulemaking.pdf (SECURED)
What’s Next?
The agencies have emphasized that they will continue to apply the 1995 CRA regulations in the interim. We will closely monitor developments and provide updates as further information becomes available or if the final rule is issued.
Stay tuned to our blog for ongoing coverage of CRA developments and regulatory changes affecting the banking industry.
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