A proposal to overhaul an anti-redlining rule could come as early as October, capping months of discussions between banks, community groups and regulators to give the law its first update since 2005.
The Office of the Comptroller of the Currency is "working hard toward an October date" to release its highly anticipated proposal, a person with knowledge of internal discussions said. Comptroller Joseph Otting previously said the agency was targeting the end of September.
The proposed rule will overhaul the Community Reinvestment Act, or CRA, which requires banks to provide banking services to communities they operate in. Congress enacted the law in 1977 to prevent banks from excluding certain groups, particularly minorities, from banking services.
The OCC, the Federal Deposit Insurance Corp. and the Federal Reserve have been working toward a proposed rule since 2018.
The proposal is expected to address assessment areas and ways to measure CRA compliance.
Once the proposed rule is released, the public will have multiple weeks to submit comments.
