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McHenry Applauds Proposal to Strengthen the Community Reinvestment Act Through Modernization

Washington, Dec 12 -

WASHINGTON – Today, the Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in support of the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation’s (FDIC) joint proposal to modernize the Community Reinvestment Act (CRA):

“In the past 40 years since the CRA was enacted, the way Americans save, access, and monitor their money has been revolutionized as a result of advancements in technology. I’m glad to see the OCC and FDIC’s proposal to modernize the CRA to ensure it meets the current needs of the consumers it was intended to help and financial institutions alike. This update reflects the transformation of banking services and will increase the effectiveness, transparency, and objectivity needed in examinations. This proposal will encourage banks to continue to provide the services most needed in low- to moderate-income neighborhoods as well as distressed and rural communities. I look forward to continuing to work with the OCC and FDIC to strengthen the CRA by bringing it into the 21st century.”

The OCC and FDIC’s proposed rule will:

• Expand the types of activities that count toward CRA credit, encouraging more capital, investment, lending, and services in the communities that need it most.
• Provide clarity for banks regarding what counts for CRA credit.
• Evaluate CRA performance more objectively.
• Strengthen the CRA by updating rules and regulations, last updated in 1995.

Read the OCC and FDIC’s proposal here.