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McHenry Supports Modernization of Community Reinvestment Act to Ensure Economic Recovery

Washington, May 20 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement after the Office of the Comptroller of the Currency (OCC) released its final rule to modernize the Community Reinvestment Act (CRA):

“I’m glad to see the OCC move to strengthen the CRA through modernization. This update reflects the transformation of banking services and increases the transparency and objectivity needed in examinations. As we work to ensure a strong economic recovery for all Americans, it’s critical we encourage financial institutions to continue to provide services for those most in need. The OCC’s final rule will play an important role in this recovery effort by encouraging more capital, investment, and lending services in the communities hardest hit by COVID-19.”

The OCC’s final rule will support the coronavirus recovery effort—and benefit low- and moderate-income communities in the long term—by encouraging CRA qualifying activities, including:

• Supporting affordable housing measures.
• Lending to a business that is a CRA-eligible business under the SBA Paycheck Protection Program.
• Financing community support services such as childcare, health, and housing services for LMI individuals or families.
• Providing loans, investment, and services in support of essential community facilities in LMI communities such as schools, libraries, parks, hospitals, and health care and public safety facilities.
• Lending to a company to build a health clinic in an underserved area, using the USDA’s Community Facilities Guarantee Loan Program.
• Donating to a CDFI that is providing technical assistance and loans to small businesses adversely impacted by state-mandated business closures during a health emergency.
• Providing grants to an organization to purchase personal or other protective equipment for doctors and nurses treating in a Federally Qualified Health Care Center during a local health emergency.
• Donating to a school that partially or primarily serves LMI students to purchase technology that enables it to conduct on-line classes for students affected by government mandated stay-at-home orders during a national health emergency.

Additionally, the Federal Deposit Insurance Corporation (FDIC) released a statement in support of the agency’s joint proposed rulemaking.

In January, the Committee held a hearing with Comptroller of the Currency Joseph Otting on the CRA proposal. Ranking Member McHenry highlighted the need for these modernization efforts, calling the current regulations “an analog approach to a digital world.”