The OCC recently issued 25 FAQs related to its proposal to rescind the June 2020 CRA rule. The FAQs provide information on the rulemaking process and any potential CRA issues that may occur during any transition to the previous 1995 rules.
The main takeaways include:
The 2020 Rule will apply until it is replaced by a different rule. However, the OCC will not use the criteria from the 2020 rule for quantification of qualifying activities, assessment areas, general performance standards, data collection, recordkeeping or reporting. Further, the OCC “will not object” to banks suspending activities intended to comply with parts of the rule that are scheduled to go into effect on January 1, 2023, or January 1, 2024.
An activity that meets the qualifying criteria in effect on the date it is originated, made, purchased, or conducted will remain a qualifying activity, including those activities in targeted areas. However, confirmation letters for qualifying activities under the 2020 rule would apply only while that rule is in effect. Banks should maintain documentation to support the date of an activity and how it qualifies under the 2020 rule or the 1995 rules, as applicable.
Published
2021/12/02
