Tuesday Topic: CRA Reimagined

​I believe the Treasury is on the right track. The biggest issue we have struggled with is transparency and especially as it relates to LMI lending. Trying to establish goals for our bankers in this lending category is very difficult as we can't get definitive answer as what the examiners expect in terms of LMI lending as it relates to the population in our different trade areas.

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Andrew Hancock
Regional President
FirstBank
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Original Message:
Sent: 04-10-2018 09:07
From: Barb Rehm
Subject: Tuesday Topic: CRA Reimagined

Something unusual happened last week when the Treasury Department issued a 31-page report full of ideas for updating the Community Reinvestment Act of 1977. Both sides – bankers and community activists – endorsed it, American Banker reported. That rarely happens.

The four main reforms are:

• Redefine assessment areas to reflect technological advances and changing customer behavior;
• Increase transparency around the rating process;
• Make exams more efficient, including deadlines for report delivery; and
• Provide incentives for compliance.

Federal banking agencies are expected to follow Treasury's lead by issuing an advanced notice of proposed rulemaking soon. What do you think? Is Treasury on the right track? Will these reforms make a difference? What other CRA-related reforms should policymakers consider?

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Barb Rehm
Promontory Interfinancial Network
Arlington VA
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