As discussed here, on October 24, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency finally issued their long-awaited final rule modernizing how they assess lenders’ compliance under the Community Reinvestment Act (CRA). The CRA regulations had not been updated since 1995.

Today, the final rule was published in the Federal Register. Key goals of the final rule are to encourage banks to expand access to credit, investment and banking services in LMI communities; adapt to changes in the banking industry, including mobile and online banking; provide greater clarity and consistency in the application of the CRA regulations; and tailor CRA evaluations and data collection to bank size and type.

While the final rule becomes effective on April 1, 2024, there is a transition period for the new regulations. The April 1, 2024 effective date is applicable to provisions of the final rule that are similar to the current CRA regulations: facility-based assessment area delineations, effect of CRA on applications, public file, bank public notice, and CRA examination schedule public notice provisions, as well as the new public engagement provision. Banks will be required to comply with all other provisions of the final rule on January 1, 2026, except for certain reporting requirements, which will be applicable on January 1, 2027.