On April 3, 2018, the Department of Treasury released recommendations to “modernize” the Community Reinvestment Act of 1977 (“CRA”). Treasury’s recommendations include:
- updating the definitions of geographic assessment areas to reflect the changing nature of banking arising from changing technology, customer behavior, and other factors;
- increasing clarity and flexibility of CRA examinations to increase transparency and effectiveness of CRA rating determinations;
- improving the examination process to increase timeliness of evaluations and increasing accountability for banks’ planning of their CRA activity; and
- incorporating performance incentives to better serve the CRA’s intended purpose of encouraging banks to meet the credit and deposit needs of their communities.
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