Low-income loan rules defined for a global overhaul
Major U.S. banking regulators are expected to commit as early as Tuesday to jointly modernize the rules governing how banks lend hundreds of billions of dollars a year to low-income communities, according to people familiar with the plans.
At the same time, officials are expected to propose abandoning a Trump-era rule overhaul that divided regulators and industry officials, people said.
At a time when many banking services have moved online, regulators have attempted to forge a consensus to update the rules of a law enacted over 40 years ago, when banking was mostly done in local offices. physical branches.
The Office of the Comptroller of the Currency, which oversees national banks and much of the activity under low-income lending rules, is expected to offer to withdraw the controversial changes it pushed through last year without support from the Federal Reserve and Federal Depot. Insurance Corp., two other bank regulators responsible for overseeing the CRA.
The Community Reinvestment Act is one of the main tools the government is using to encourage banks to lend more to low and moderate income communities, at a time when the Biden administration has pledged to do more to address disparities in wealth, income and access to financial services among blacks and other racial groups.