# Community Reinvestment Act Regulations > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2025-13559 ## Record - **Collection:** Federal Register - **Document type:** Proposed Rule - **Published:** July 18, 2025 - **Citation:** 90 FR 34086 ## Text DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 24, 25, and 35 [Docket ID OCC-2025-0005] RIN 1557-AF30 FEDERAL RESERVE SYSTEM 12 CFR Parts 207 and 228 Regulation BB [Docket No. R-1869] RIN 7100-AG95 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Parts 345 and 346 RIN 3064-AG13 Community Reinvestment Act Regulations AGENCY: The Office of the Comptroller of the Currency, Treasury; the Board of Governors of the Federal Reserve System; and the Federal Deposit Insurance Corporation. ACTION: Notice of proposed rulemaking. SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) propose to amend their Community Reinvestment Act (CRA) regulations by rescinding the final rule titled “Community Reinvestment Act” published in the Federal Register on February 1, 2024, and replacing it with the agencies' CRA regulations in effect on March 29, 2024, with certain conforming and technical amendments. The agencies are also proposing technical amendments to their regulations implementing the CRA sunshine requirements of the Federal Deposit Insurance Act, and the OCC is proposing technical amendments to its Public Welfare Investments regulation. DATES: Comments must be received on or before August 18, 2025. ADDRESSES: Comments should be directed to the agencies as follows: OCC: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title “Community Reinvestment Act Regulations” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: • Federal eRulemaking Portal—Regulations.gov: Go to https://regulations.gov. Enter “Docket ID OCC-2025-0005” in the Search Box and click “Search.” Public comments can be submitted via the “Comment” box below the displayed document information or by clicking on the document title and then clicking the “Comment” box on the top-left side of the screen. For help with submitting effective comments please click on “Commenter's Checklist.” For assistance with the Regulations.gov site, please call (877) 378-5457 (toll free) or (703) 454-9859 Monday-Friday, 9 a.m.-5 p.m. EST or email regulations@erulemakinghelpdesk.com. • Mail: Chief Counsel's Office, Attention: Comment Processing, Office of the Comptroller of the Currency, 400 7th Street SW, suite 3E-218, Washington, DC 20219. • Hand Delivery/Courier: 400 7th Street SW, suite 3E-218, Washington, DC 20219. Instructions: You must include “OCC” as the agency name and “Docket ID OCC-2025-0005” in your comment. In general, the OCC will enter all comments received into the docket and publish the comments on the Regulations.gov website without change, including any business or personal information provided such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. You may review comments and other related materials that pertain to this action by the following method: • Viewing Comments Electronically—Regulations.gov: Go to https://regulations.gov. Enter “Docket ID OCC-2025-0005” in the Search Box and click “Search.” Click on the “Documents” tab and then the document's title. After clicking the document's title, click the “Browse Comments” tab. Comments can be viewed and filtered by clicking on the “Sort By” drop-down on the right side of the screen or the “Refine Results” options on the left side of the screen. Supporting materials can be viewed by clicking on the “Documents” tab and filtered by clicking on the “Sort By” drop-down on the right side of the screen or the “Refine Documents Results” options on the left side of the screen.” For assistance with the Regulations.gov site, please call (877) 378-5457 (toll free) or (703) 454-9859 Monday-Friday, 9 a.m.-5 p.m. EST or email regulations@erulemakinghelpdesk.com. The docket may be viewed after the close of the comment period in the same manner as during the comment period. Board: You may submit comments, identified by Docket No. R-1869 and RIN 7100-AG95, by any of the following methods: • Agency Website: https://www.federalreserve.gov/apps/proposals/. Follow the instructions for submitting comments, including attachments. Preferred Method. • Mail: Ann E. Misback, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. • Hand Delivery/Courier: Same as mailing address. • Other Means: publiccomments@frb.gov. You must include the docket number in the subject line of the message. Comments received are subject to public disclosure. In general, comments received will be made available on the Board's website at https://www.federalreserve.gov/apps/proposals/ without change and will not be modified to remove personal or business information including confidential, contact, or other identifying information. Comments should not include any information such as confidential information that would be not appropriate for public disclosure. Public comments may also be viewed electronically or in person in Room M-4365A, 2001 C St. NW, Washington, DC 20551, between 9 a.m. and 5 p.m. during Federal business weekdays. FDIC: You may submit comments, identified by RIN 3064-AG13, by any of the following methods: • Agency Website: https://www.fdic.gov/resources/regulations/federal-register-publications. Follow instructions for submitting comments on the agency website. • Email: comments@fdic.gov. Include RIN 3064-AG13 on the subject line of the message. • Mail: Jennifer M. Jones, Deputy Executive Secretary, Attention: Comments RIN 3064-AG13, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. • Hand Delivery/Courier: Comments may be hand delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street NW) on business days between 7 a.m. and 5 p.m. Public Inspection: Comments received, including any personal information provided, may be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications. Commenters should submit only information that the commenter wishes to make available publicly. The FDIC may review, redact, or refrain from posting all or any portion of any comment that it may deem to be inappropriate for publication, such as irrelevant or obscene material. The FDIC may post only a single representative example of identical or substantially identical comments, and in such cases will generally identify the number of identical or substantially identical comments represented by the posted example. All comments that have been redacted, as well as those that have not been posted, that contain comments on the merits of the notice will be retained in the public comment file and will be considered as required under all applicable laws. All comments may be accessible under the Freedom of Information Act. FOR FURTHER INFORMATION CONTACT: OCC: Heidi Thomas, Senior Counsel, or Emily Boyes, Counsel, Chief Counsel's Office, (202) 649-5490; Onjil T. McEachin, Director for CRA and Fair Lending Policy, Office of the Chief National Bank Examiner, (202) 649-5470; or Chandni G. Ohri, Director for Community Development, Office of Community and Industry Relations, (202) 649-6420, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Board: Amal Patel, Senior Counsel, Jaydee DiGiovanni, Counsel, and Taz George, Manager, Division of Consumer and Community Affairs; Cody Gaffney, Counsel, Legal Division; at (202) 452-3000. For users of text telephone systems (TTY) or any TTY-based Telecommunications Relay Services, please call 711 from any telephone, anywhere in the United States. FDIC: Cassandra Duhaney, Counsel, Legal Division, cduhaney@fdic.gov; Alys V. Brown, Senior Attorney, Legal Division, alybrown@fdic.gov; Patience R. Singleton, Senior Policy Analyst, Supervisory Policy Branch, Division of Depositor and Consumer Protection, psingleton@fdic.gov; Kristopher M. Rengert, Senior Policy Analyst, Supervisory Policy Branch, Division of Depositor and Consumer Protection, krengert@fdic.gov, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: I. Introduction The agencies are proposing to rescind the CRA final rule issued on October 24, 2023, and published in the Federal Register on February 1, 2024, 1 as subsequently amended 2 (2023 CRA Final Rule). The agencies also are proposing to replace the 2023 CRA Final Rule with regulations adopted by the agencies and the former Office of Thrift Supervision (OTS) on May 4, 1995, 3 as amended, 4 and as published in the Electronic Code of Federal Regulations (eCFR) as of March 29, 2024 (1995 CRA regulations), with conforming amendments to the agencies' definition of “small bank” and technical amendments to the OCC's definition of “small bank” and transition provisions. The agencies are also proposing technical amendments to their regulations implementing the CRA sunshine requirements of the Federal Deposit Insurance Act, and the OCC is proposing technical amendments to its Public Welfare Investments regulation. If adopted, the proposal would restore certainty in the CRA framework for stakeholders and limit regulatory burden on banks, 5 while ensuring that banks continue to focus on the purpose of the CRA. 1 89 FR 6574 (Feb. 1, 2024). 2 89 FR 22060 (Mar. 29, 2024). 3 60 FR 22156 (May 4, 1995). The OCC reissued its 1995 CRA regulation, as amended, with non-substantive changes on December 15, 2021. See 86 FR 71328. For purposes of this SUPPLEMENTARY INFORMATION , reference to the 1995 CRA regulations includes the OCC's 2021 CRA final rule. 4 See e.g., 70 FR 44256 (Aug. 2, 2005); 75 FR 61035 (Oct. 4, 2010); 82 FR 55734 (Nov. 24, 2017). 5 For purposes of this SUPPLEMENTARY INFORMATION , the term “bank” includes insured national banks, Federal and State savings associations, and certain Federal branches of foreign banks as defined in proposed 12 CFR 25.11; insured State nonmember banks and certain insured State branches of foreign banks as defined in 12 CFR 345.11; and State member banks and certain uninsured State branches of foreign banks, as defined in 12 CFR 228.11). As explained in greater detail below, banks currently operate under the framework of the 1995 CRA regulations. Therefore, the agencies anticipate that transition considerations associated with the proposed recodification of the 1995 CRA regulations would be de minimis. The agencies believe the recodification of the 1995 CRA regulations would best achieve the agencies' objectives at this time, as discussed below. II. Background The CRA Congress enacted the CRA 6 in 1977 based on its findings that: “(1) regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business; (2) the convenience and needs of communities include the need for credit services as well as deposit services; and (3) regulated financial institutions have continuing and affirmative obligation[s] to help meet the credit needs of the local communities in which they are chartered.” 7 Accordingly, the purpose of the CRA is to require the agencies to encourage regulated financial institutions 8 “to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of the institutions.” 9 6 Public Law 95-128, 91 Stat. 1147 (1977) (codified at 12 U.S.C. 2901 et seq. (as amended)). 7 12 U.S.C. 2901(a). 8 The CRA defines “regulated financial institution,” to mean an insured depository institution as defined in 12 U.S.C. 1813(c)(2). See 12 U.S.C. 2902(2). 9 12 U.S.C. 2901(b). To achieve this purpose, the CRA requires the agencies to “assess [an] institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution.” 10 Upon completing this assessment, the statute requires the agencies to “prepare a written evaluation of the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.” 11 The statute further provides that each agency must “take such record into account in its evaluation of an application for a deposit facility by such institution.” 12 10 12 U.S.C. 2903(a)(1). 11 12 U.S.C. 2906(a). 12 12 U.S.C. 2903(a)(2). The Agencies' Regulatory Framework The CRA directs the agencies to publish regulations to carry out the purposes of the CRA. 13 In general, the agencies' CRA regulations, first promulgated in 1978, establish the standards under which the agencies evaluate banks' CRA performance. 14 The agencies' 1995 CRA regulations significantly revised and clarified the 1978 regulations. 15 Periodically, the agencies have jointly updated and revised the 1995 CRA regulations with minimal significant alterations to the overall regulatory framework. 16 The OCC issued a separate CRA final rule in May 2020, but rescinded it in December 2021. 17 13 12 U.S.C. 2905. Pursuant to Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376, 1522 (2010), the OTS's CRA rulemaking authority for all savings associations transferred to the OCC and the OTS's CRA supervisory authority for State savings associations transferred to the FDIC. As a result, the OCC's CRA regulation applies to both State and Federal savings associations, in addition to national banks, and the FDIC enforces the OCC's CRA regulation with respect to State savings associations. 14 43 FR 47144 (Oct. 12, 1978). 15 See supra note 3. 16 For a complete discussion of the agencies' actions with respect to amending their CRA regulations, see the SUPPLEMENTARY INFORMATION section of the 2023 CRA Final Rule, 89 FR at 6580. 17 On May 20, 2020, the OCC issued a final rule to revise and update its CRA regulation. 85 FR 34734 (June 5, 2020). On December 15, 2021, the OCC published a subsequent final rule that rescinded its 2020 CRA regulation and replaced it with a CRA regulation based on those that the agencies jointly issued in 1995, as amended. See supra note 3. The 2023 CRA Final Rule On May 5, 2022, the agencies issued a joint notice of proposed rulemaking to modernize their regulations implementing the CRA. 18 After considering public comments received, the agencies issued the 2023 CRA Final Rule on October 24, 2023. 18 87 FR 33884 (June 3, 2022). Under the 2023 CRA Final Rule, as fully implemented: 19 19 For a complete overview of the 2023 CRA Final Rule, see the SUPPLEMENTARY INFORMATION section of the rule, 89 FR at 6574-6579. • Large banks (institutions with assets of at least $2 billion as of December 31 in both of the prior two calendar years) would be subject to four performance tests: the Retail Lending Test; the Retail Services and Products Test; the Community Development Financing Test; and the Community Development Services Test. • Intermediate banks (institutions with assets of at least $600 million as of December 31 in both of the prior two calendar years and less than $2 billion as of December 31 in either of the prior two calendar years) would be subject to two performance tests: the Retail Lending Test and the Intermediate Bank Community Development Test. • Small banks (institutions with assets less than $600 million as of December 31 in either of the prior two calendar years) would be subject to the Small Bank Lending Test. • Limited purpose banks (institutions that do not extend closed-end home mortgage loans, small business loans, small farm loans, or automobile loans to customers, except on an incidental and accommodation basis) would be subject to the Community Development Financing Test for Limited Purpose Banks. • Generally, banks operating under an approved strategic plan would be subject to the same performance tests they would have been subject to in the absence of a plan; the plan itself could include additions or modifications to tailor the applicable performance tests to the bank's business model. • The agencies would continue to evaluate banks' performance in the areas surrounding their main office, branches, or deposit-taking remote service facilities ( i.e., facility-based assessment areas). In addition, the agencies would evaluate the retail lending performance of certain large banks in areas outside their facility-based assessment areas where they have concentrations of retail loans ( i.e., retail lending assessment areas) and the retail lending performance of large banks and certain intermediate and small banks in the nationwide area outside their facility-based assessment areas and retail lending assessment areas ( i.e., outside retail lending areas). Further, the agencies would consider community development loans, community development investments, and community development services both inside and outside of a bank's facility-based assessment areas. • Large banks would be required to collect, maintain, and report certain data to enable evaluation under the applicable performance tests. • With respect to community development: ○ The rule specified in detail the categories of bank activities that would qualify for CRA consideration as a community development loan, community development investment, or community development service; ○ The agencies would provide an illustrative, non-exhaustive list of examples of loans, investments, and services that qualify for community development consideration and a process for banks to inquire whether a particular loan, investment, or service is eligible for consideration; and ○ The agencies would consider impact and responsiveness factors when evaluating a bank's community development loans, community development investments, and community development services. As adopted, the 2023 CRA Final Rule would have become effective on April 1, 2024; however, most substantive provisions of the rule would not have become applicable until January 1, 2026, or January 1, 2027. During this transition period, the 2023 CRA Final Rule specified that the 1995 CRA regulations, as reproduced in Appendix G of the 2023 CRA Final Rule, would remain applicable. On March 21, 2024, the agencies issued a supplemental rule to the 2023 CRA Final Rule. 20 The supplemental rule extended the applicability dates of the facility-based assessment area and public file provisions of the 2023 CRA Final Rule from April 1, 2024, to January 1, 2026. The supplemental rule also included some technical, non-substantive amendments to the 2023 CRA Final Rule and related regulations and corrected a citation to the OCC's CRA regulation. 20 See supra note 2. Several plaintiffs jointly filed suit against the agencies in the U.S. District Court for the Northern District of Texas challenging aspects of the 2023 CRA Final Rule on February 5, 2024, 21 and subsequently requested a preliminary injunction on February 9, 2024. 22 On March 29, 2024, the district court granted plaintiffs' request and enjoined the agencies from enforcing the 2023 CRA Final Rule against the plaintiffs, pending resolution of the litigation. The district court's order also extended the 2023 CRA Final Rule's effective date of April 1, 2024, along with all other implementation dates, day for day for each day the injunction remains in place. 23 21 Complaint, Tex. Bankers Ass'n v. Office of the Comptroller of the Currency, No. 2:24-cv-00025-Z (N.D. Tex. Feb. 5, 2024), ECF No. 4. 22 Plaintiffs' Motion for a Preliminary Injunction, Tex. Bankers Ass'n v. Office of the Comptroller of the Currency, No. 2:24-cv-00025-Z (N.D. Tex. Feb. 9, 2024), ECF No. 19. 23 Tex. Bankers Ass'n v. Office of the Comptroller of the Currency, 728 F. Supp. 3d 412 (N.D. Tex. 2024). On April 18, 2024, the agencies appealed the district court's preliminary injunction to the U.S. Court of Appeals for the Fifth Circuit. 24 However, on March 28, 2025, during the pendency of the appeal, the agencies made an unopposed motion to stay the appeal pending completion of a new rulemaking that would propose rescinding the enjoined 2023 CRA Final Rule and reinstating the CRA framework that existed prior to the 2023 CRA Final Rule. 25 The agencies publicly announced this intention the same day. 26 On April 1, 2025, the Fifth Circuit granted the agencies' motion. 27 In light of this preliminary injunction, the agencies are not supervising for, or applying, any provisions of the 2023 CRA Final Rule. 24 Defendants' Notice of Appeal, Tex. Bankers Ass'n v. Office of the Comptroller of the Currency, No. 2:24-cv-00025-Z (N.D. Tex. Apr. 18, 2024), ECF No. 79. 25 Defendants-Appellants' Unopposed Motion to Stay Pending Completion of New Rulemaking Proceedings, Tex. Bankers Ass'n v. Bd. of Governors of the Fed. Reserve Sys., No. 24-10367 (5th Cir. Mar. 28, 2025), ECF No. 165. 26 See OCC, “Agencies Announce Intent to Rescind 2023 Community Reinvestment Act Final Rule” (Mar. 28, 2025), https://www.occ.treas.gov/news-issuances/news-releases/2025/nr-ia-2025-26.html; Board, “Agencies Announce Intent to Rescind 2023 Community Reinvestment Act Final Rule” (Mar. 28, 2025), https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250328a.htm; FDIC, “Agencies Announce Intent to Rescind 2023 Community Reinvestment Act Final Rule” (Mar. 28, 2025), https://www.fdic.gov/news/press-releases/2025/agencies-announce-intent-rescind-2023-community-reinvestment-act-final. 27 Order, Tex. Bankers Ass'n v. Bd. of Governors of the Fed. Reserve Sys., No. 24-10367 (5th Cir. Apr. 1, 2025), ECF No. 174. III. Proposed Rescission of 2023 CRA Final Rule The agencies' reconsideration of the 2023 CRA Final Rule is precipitated primarily by the uncertainty created by the pending litigation. 28 Specifically, since the injunction was entered, the agencies have observed confusion and inconsistent understandings among stakeholders regarding the status of the CRA regulatory and supervisory landscape. 28 The agencies also note that a change in agency priorities at the FDIC and OCC has taken place since the agencies adopted the 2023 CRA Final Rule. Accordingly, the agencies have reconsidered the status of the CRA regulatory framework with two major objectives in mind: (1) restoring certainty in the CRA regulatory framework for stakeholders; and (2) limiting regulatory burden on banks. Further, the agencies took into account that any changes to the proposed CRA regulatory framework must continue to focus on the CRA's purpose—encouraging banks to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of the banks. The agencies' assessment of these objectives, as well as additional considerations that informed the agencies' reconsideration of the CRA regulatory framework, are discussed below. Agency Objectives Restoring Certainty. The agencies believe that returning to the regulatory framework established by the 1995 CRA regulations is the most effective way to provide certainty regarding the applicable CRA requirements. Since the issuance of the preliminary injunction enjoining the 2023 CRA Final Rule, the agencies' observations are that not all stakeholders understand whether they should prepare to comply with the 2023 CRA Final Rule or even which regulatory framework is currently applicable. Proceeding with the litigation, particularly given its early stage, would maintain these uncertain circumstances for an indefinite period and would therefore be inconsistent with the objective of restoring certainty in the CRA regulatory framework. The agencies also understand that despite the fact that the 2023 CRA Final Rule is now enjoined and might not go into effect, banks might be devoting resources toward preparing for the 2023 CRA Final Rule that could otherwise be allocated toward helping to meet the credit needs of banks' communities. Returning to the 1995 CRA regulations at this time, in the agencies' view, would confirm for banks that they do not need to allocate resources for this purpose. Thus, this approach could better facilitate the purpose of the CRA—encouraging banks to meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of those banks. The agencies' view that returning to the framework established by the 1995 CRA regulations would best restore certainty is also informed by the circumstances preceding the litigation. The agencies have individually and collectively engaged in several iterations of information gatherings and CRA rulemaking processes since 2018 aimed at modernizing the CRA framework and increasing the clarity and consistency of CRA evaluations. These efforts have resulted in a shifting CRA regulatory landscape, in particular, for national banks and savings associations. 29 This regulatory environment may have affected the planning, development, and management of banks' CRA programs, which can require multi-year strategies to align qualifying activities with CRA performance evaluation periods. Continuing the litigation would prolong the period during which banks will need to consider impending changes in the regulatory framework while managing their CRA programs. Further, if the litigation continues, banks may need to anticipate and plan for potential contingencies in which all or a part of the 2023 CRA Final Rule could eventually become applicable. In light of this context, the agencies believe that returning to the 1995 CRA regulations at this time would restore much needed certainty for banks and other stakeholders. 29 See supra note 17. Limiting Regulatory Burden. When issuing the 2023 CRA Final Rule, the agencies sought to balance the increased regulatory burden imposed by the revised framework with benefits associated with the agencies' policy objectives for updating the CRA framework. The agencies also recognized that a subset of banks would have additional regulatory requirements under the 2023 CRA Final Rule relative to the 1995 CRA regulations. Furthermore, all banks would have incurred near-term costs associated with reviewing the 2023 CRA Final Rule to ensure that their policies; procedures; and data collection, maintenance, and reporting processes would be compliant. In contrast, because banks are currently subject to and examined under the 1995 CRA regulations, the agencies expect that any new regulatory burden associated with recodifying those regulations will be de minimis. Further, the 1995 CRA regulations represent an established regulatory framework that is familiar to CRA stakeholders. 30 Therefore, although the agencies' reasons for modernizing the CRA framework remain valid, the agencies believe that replacing the 2023 CRA Final Rule with the 1995 CRA regulations would better limit overall regulatory burden on banks at this time given the totality of the circumstances. 30 See, e.g., Laurie Goodman, et al., “Under the Current CRA Rules, Banks Earn Most of Their CRA Credit through Community Development and Single-Family Mortgage Lending,” Urban Institute (July 9, 2020), https://www.urban.org/urban-wire/under-current-cra-rules-banks-earn-most-their-cra-credit-through-community-development-and-single-family-mortgage-lending; Daniel Ringo, Board, “`Revitalize or Stabilize': Does Community Development Financing Work?,” Finance and Economics Discussion Series 2020-029 (Apr. 2020), https://www.federalreserve.gov/econres/feds/files/2020029pap.pdf. For all the foregoing reasons, the agencies believe that the need to restore certainty and limit regulatory burden supports the decision to propose rescission of the 2023 CRA Final Rule and recodify the 1995 CRA regulations. Further, the agencies believe that recodifying the 1995 CRA regulations will continue to support the purpose of the CRA. Additional Agency Considerations The following considerations also informed the agencies' review of the CRA regulatory framework and the proposal to return to the 1995 CRA regulations. Change in Policy. The agencies acknowledge that rescinding the 2023 CRA Final Rule would represent a change in policy. However, the agencies note that many of the provisions in the 2023 CRA Final Rule were included in, or substantially based on, the 1995 CRA regulations or reflected existing agency supervisory policies. With respect to those provisions of the 2023 CRA Final Rule, the proposal therefore does not reflect a significant change in policy. These provisions include: many aspects of the regulatory definitions; facility- based assessment areas; the Small Bank Performance Test; the Intermediate Bank Community Development Test; the effect of CRA performance on applications; the public file requirements; the public notice requirements; and some data collection, maintenance, and reporting requirements. Moreover, rescinding the 2023 CRA Final Rule and recodifying the 1995 CRA regulations would not, in practice, result in a change for banks because the agencies are currently applying the 1995 CRA regulations to banks. Further, the agencies believe that any reliance interests vested in the 2023 CRA Final Rule are as yet de minimis because the rule was enjoined prior to its effective and applicability dates. Put simply, the 2023 CRA Final Rule has never applied to any bank. Transition Issues. The agencies believe that transition considerations associated with implementing the proposal would likewise be de minimis. The agencies currently evaluate bank CRA performance under the 1995 CRA regulations because the 2023 CRA Final Rule never took effect. Therefore, the agencies expect that a recodification of the 1995 CRA regulations will have a negligible transitional impact on all CRA stakeholders. Alternatives Considered Although there are potential alternatives to rescinding the 2023 CRA Final Rule and returning to the 1995 CRA regulations, the agencies believe that these alternatives do not best meet the agencies' objectives in reconsidering the CRA framework at this time. One alternative the agencies considered was maintaining the 2023 CRA Final Rule. However, the agencies believe that this alternative would be unviable. As discussed above, maintaining the 2023 CRA Final Rule would potentially require continuing with protracted litigation, thereby extending the current uncertainty related to the applicable CRA regulatory framework. Ultimately, that litigation could result in changes to or a voiding of the 2023 CRA Final Rule, imposing further uncertainty over an extended period. As also discussed above, the agencies believe that maintaining the 2023 CRA Final Rule could result in banks expending resources to implement the rule without knowing whether all or part of the rule would survive the legal challenge. Another alternative the agencies considered was proposing to replace the 2023 CRA Final Rule with a new CRA framework that is materially different from the framework contained in the 2023 CRA Final Rule. However, proposing to establish a materially revised framework would involve undertaking an extensive regulatory process, which would not be consistent with the agencies' objective of restoring certainty in the near term. The agencies believe that recodifying the 1995 CRA regulations at this time would provide a more predictable environment and best position stakeholders to manage any possible future regulatory developments. Lastly, the agencies reviewed the option of proposing targeted amendments to the 2023 CRA Final Rule. However, the agencies considered that, because the 2023 CRA Final Rule is structured in a comprehensive, layered format with interdependent provisions, removing only certain provisions would be incompatible with the operational structure of the rule. For example, proposing to remove the retail lending assessment area provision would also require the agencies to propose related changes to provisions concerning: the Retail Lending Test overall; outside retail lending areas; affiliate lending; strategic plans; public file requirements; appendix A of the 2023 CRA Final Rule (Calculations for the Retail Lending Test); the manner in which conclusions and ratings are calculated for all applicable performance tests under appendices C and D; and data collection, maintenance, and reporting requirements. Furthermore, by proposing to amend the 2023 CRA Final Rule instead of rescinding it and replacing it with the 1995 CRA regulations, an established CRA framework, the agencies would be embarking upon a potentially lengthy period of rulemaking-related activities, thereby continuing the uncertainty for CRA stakeholders. Therefore, the agencies do not believe that it is feasible to amend the 2023 CRA Final Rule in a way that meets the agencies' objectives of restoring certainty. Accordingly, the agencies believe that rescinding the entire 2023 CRA Final Rule and recodifying the 1995 CRA regulations is the best approach at this time to accomplish the agencies' objectives of restoring certainty and limiting regulatory burden while meeting the purpose of the CRA—encouraging banks to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of those banks. IV. Description of the Proposed Rule The proposal would recodify the 1995 CRA regulations currently applicable to banks, as published in the eCFR as of March 29, 2024, with updated asset-size thresholds for the definition of “small bank” to reflect the agencies' inflation adjustments for 2025. 31 (As described elsewhere in this SUPPLEMENTARY INFORMATION , the OCC's proposed regulatory text also includes technical amendments to its definition of “small bank” and its transition provisions.) As such, the proposal includes the provisions described below. 31 The agencies annually adjust the CRA asset-size thresholds based on the annual percentage change in a measure of the Consumer Price Index. The bank asset-size thresholds set forth in this proposed rule are accurate through December 31, 2025. See 89 FR 106480 (Dec. 30, 2024) (Board and FDIC); OCC Bulletin 2024-36 (Dec. 23, 2024), https://www.occ.treas.gov/news-issuances/bulletins/2024/bulletin-2024-36.html (OCC). Standards for Assessing Performance The proposal provides the following different methods to evaluate a bank's CRA performance depending on bank asset size and business strategy: • Small banks that are not intermediate small banks—defined as banks with assets of less than $402 million as of December 31 of either of the prior two calendar years—would be evaluated under a lending test and may receive an “Outstanding” rating based only on their retail lending performance. Qualified investments, services, and delivery systems that enhance credit availability in a bank's assessment areas may be considered for an “Outstanding” rating, but only if the bank meets or exceeds the lending test criteria in the small bank performance standards. • Intermediate small banks—defined as small banks with assets of at least $402 million as of December 31 of both of the prior two calendar years and less than $1.609 billion as of December 31 of either of the prior two calendar years—would be evaluated under the lending test for small banks and a community development test. The intermediate small bank community development test would evaluate all community development activities combined. • Large banks—those banks with assets of at least $1.609 billion as of December 31 of both of the prior two calendar years—would be evaluated under separate lending, investment, and service tests. The lending and service tests would consider both retail and community development activities, and the investment test would focus on qualified investments. To facilitate the agencies' CRA analysis, large banks would be required to report annually certain data on community development loans, small business loans, and small farm loans. Small banks and intermediate small banks would not be required to report these data unless they opt into being evaluated under the large bank lending tests. • Designated wholesale banks (those engaged in only incidental retail lending) and limited purposes banks (those offering a narrow product line to a regional or broader market) would be evaluated under a standalone community development test. • Banks of any size could elect to be evaluated under a strategic plan that sets out measurable, annual goals for lending, investment, and service activities to achieve a “Satisfactory” or an “Outstanding” rating. A strategic plan would need to be developed with community input and approved by the appropriate Federal financial supervisory agency. The proposal provides that the agencies could also consider applicable performance context information to develop their analyses and conclusions when conducting CRA examinations. 32 Performance context would comprise a broad range of economic, demographic, and bank- and community-specific information that examiners review to calibrate a bank's CRA evaluation to its communities. Consistent with the statute, the proposed regulations would not require banks to make loans or investments or to provide services that are inconsistent with safe and sound operations. 33 32 See proposed 12 CFR __.21(b). 33 See proposed 12 CFR __.21(d). Assigned Ratings In general, the agencies would assign banks' CRA ratings under the applicable performance tests and standards ( e.g., for large banks, the lending, investment, and service tests). 34 The evaluation of a bank's CRA performance would be adversely affected by evidence of discriminatory or other illegal credit practices. 35 34 See proposed 12 CFR __.28(a) and (b). 35 See proposed 12 CFR __.28(c). Assessment Areas The proposal would require a bank to delineate one or more assessment areas in which the bank's record of meeting its CRA obligations is evaluated. Specifically, the proposed regulatory text would require a bank to delineate assessment areas generally consisting of (1) one or more metropolitan statistical areas (MSAs) or metropolitan divisions or (2) one or more contiguous political subdivisions 36 in which the bank has its main office, branches, and, as applicable, deposit-taking automated teller machines (ATMs) 37 or remote service facilities (RSFs), 38 as well as the surrounding geographies 39 ( i.e., census tracts) in which the bank has originated or purchased a substantial portion of its loans (including home mortgage loans, small business loans, small farm loans, and any other loans the bank chooses, such as consumer loans, on which the bank elects to have its performance assessed). 40 36 Political subdivisions include cities, counties, towns, townships, and Indian reservations. See § __.41(c)(1)—1, Interagency Questions and Answers Regarding Community Reinvestment, 81 FR 48506 (July 25, 2016). 37 See proposed 12 CFR 25.41(c)(2) (OCC); proposed 12 CFR 228.41(c)(2) (Board). 38 See proposed 12 CFR 345.41(c)(2) (FDIC). 39 See proposed 12 CFR __.41. 40 See proposed 12 CFR __.41. Qualifying Activities The proposal, along with the Interagency Questions and Answers Regarding Community Reinvestment, provide detailed information, including applicable definitions and descriptions, regarding activities that are eligible for CRA consideration in the evaluation of a bank's CRA performance. Banks that are evaluated under a performance test that includes a review of their retail activities would be assessed in connection with retail lending activity ( e.g., home mortgage loans, small business loans, small farm loans, and consumer loans) 41 and, where applicable, retail banking service activities ( e.g., the current distribution of a bank's branches in geographies of different income levels, and the availability and effectiveness of the bank's alternative systems for delivering banking services to low- and moderate-income geographies and individuals). 42 41 See proposed 12 CFR __.12(j), (l), (v), and (w). 42 See generally proposed 12 CFR __.21 through __.27; see also proposed 12 CFR __.24(d). Banks evaluated under a performance test that includes a review of their community development activities would be assessed with respect to community development lending, qualified investments, and community development services, which must have a primary purpose of community development. 43 43 See proposed 12 CFR __.12(g), (h), (i), and (t); see also proposed 12 CFR __.21 through __.27. Other Provisions The proposal also includes the following provisions: • The agencies would be required to consider the effect of a bank's CRA performance on certain banking applications. 44 In connection with a banking application, interested parties could submit comments regarding the bank's CRA performance. Furthermore, a bank's CRA performance could be the basis for denying or conditioning approval of such applications. 44 See proposed 12 CFR __.29. The covered applications are aligned with the definition of “application for a deposit facility” found in 12 U.S.C. 2902(3). • A bank would be required to collect, maintain, and report certain data to enable agencies to evaluate its CRA performance. 45 Small banks and intermediate small banks would generally be exempt from these requirements. 45 See proposed 12 CFR __.42. • A bank would be required to maintain certain information related to CRA performance in its public file. 46 The proposed public file provision specifies what information must be included, where information in the public file must be made available for public inspection, and the provision of copies. 46 See proposed 12 CFR __.43. • A bank would be required to maintain the proposed public notice contained in appendix B in the public lobby of its main office and in each of its branches. 47 47 See proposed 12 CFR __.44. • As required by the CRA, 48 a bank could receive positive CRA consideration for low-cost education loans provided to low-income borrowers and activities in cooperation with minority- or women-owned financial institutions and low-income credit unions. 49 48 12 U.S.C. 2903(b) and (d). 49 See proposed 12 CFR __.21(e) and (f). • The agencies would be required to publish a schedule of planned CRA examinations. 50 50 See proposed 12 CFR __.45. OCC Provisions As in the OCC's 1995 CRA regulation, the proposal includes provisions that apply only to the OCC. Specifically, the proposed OCC regulation includes two transition provisions that have been applicable since January 1, 2022, the effective date of the OCC's 2021 CRA final rule, with technical corrections. First, in assessing a bank's performance, the OCC would consider any investment, loan, or service that is eligible for CRA consideration at the time the bank conducted the activity. 51 Second, a strategic plan in effect as of December 31, 2021, would remain in effect, except that provisions of the plan that are not consistent with the OCC's CRA regulation in effect as of January 1, 2022, are void, unless amended. These transition provisions are necessary because the OCC had adopted and then rescinded the final rule it issued in 2020. In both these provisions, the OCC proposes a technical amendment to apply them to savings associations as well as national banks. This change would correct a drafting error in the OCC's 2021 CRA final rule. 52 51 See proposed 12 CFR __.51. 52 See supra note 3. In addition, the proposal includes subpart E, Prohibition Against Use of Interstate Branches Primarily for Deposit Production. This subpart implements section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, 12 U.S.C. 1835a, which only applies to certain national banks and Federal branches of a foreign bank. Subpart E redesignates but does not amend subpart F of the 2023 CRA Final Rule. The Board and the FDIC include these provisions in separate regulations. 53 53 See 12 CFR 208.7 (Board); 12 CFR part 369 (FDIC). V. Other Proposed Amendments CRA Sunshine Regulations The agencies are proposing conforming changes to their regulations implementing the CRA sunshine requirements of the Federal Deposit Insurance Act 54 (CRA Sunshine Regulations). 55 The CRA Sunshine Regulations currently cross-reference to the agencies' CRA regulations in appendix G of the 2023 CRA Final Rule. The proposed amendments would remove all references to appendix G so that the CRA Sunshine Regulations would instead cross-reference to the proposed recodification of each agency's respective 1995 CRA regulation. 54 Codified at 12 U.S.C. 1831y. 55 12 CFR parts 35 (OCC); 12 CFR 207 (Regulation G) (Board); and 12 CFR 346 (FDIC). OCC Amendments The OCC is proposing several clarifying amendments and a technical correction to the definition of “small bank” in 12 CFR 25.12(u). First, the OCC proposes to clarify that the dollar amounts included in the definition would only apply for calendar year 2025. Second, the OCC proposes to indicate that the annual adjustments to the thresholds included in the definition are published on the OCC's website. Since 2020, the OCC has announced the new asset-size thresholds for this definition each year by publication of an OCC Bulletin on OCC.gov and does not amend § 25.12(u) with the new thresholds. Together, these proposed amendments would ensure that stakeholders are informed that the asset-size thresholds in the definition are not current for years other than 2025 and direct stakeholders to where they can obtain the current thresholds. The OCC intends for these amendments to provide additional clarity and transparency. Third, the OCC is proposing to remove “appropriate Federal banking agency” in the definition so that the provision provides that only the OCC updates this asset-size threshold annually. Part 25 defines “appropriate Federal banking agency” to be the OCC and the FDIC. However, only the OCC updates the asset-size thresholds in the “small bank” definition of part 25. In addition, the OCC is proposing conforming amendments to its Public Welfare Investment regulation, 12 CFR part 24. Part 24 currently refers to the OCC's CRA regulation, 12 CFR part 25, as appendix G of the 2023 CRA Final Rule. The proposed amendment would remove all references to appendix G so that part 24 would instead cross-reference to the proposed recodification of the OCC's 1995 CRA regulation. 56 56 The Board's public welfare investment regulation does not cite to its CRA regulation and thus does not need to be amended. See 12 CFR 208.22. The FDIC does not have public welfare investment regulations. VI. Request for Comments The agencies request feedback on all aspects of the proposed rule. 57 57 The agencies note that they are currently engaged in the review of all their regulations under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), 12 U.S.C. 3311, which, in general, requires the agencies to conduct a review of their regulations not less frequently than once every 10 years to identify outdated or otherwise unnecessary regulatory requirements imposed on banks. As part of this review, the agencies are requesting comment on their CRA regulations. See: https://egrpra.ffiec.gov/federal-register-notices/fedreg-index.html. The agencies generally expect to consider any EGRPRA comments received on their CRA regulations separately from this rulemaking. VII. Regulatory Analysis Regulatory Flexibility Act OCC. The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), requires an agency to consider the impact of its proposed rules on small entities. In connection with a proposed rule, the RFA generally requires an agency to prepare an Initial Regulatory Flexibility Analysis (IRFA) describing the impact of the rule on small entities, unless the head of the agency certifies that the proposed rule will not have a significant economic impact on a substantial number of small entities and publishes such certification along with a statement providing the factual basis for such certification in the Federal Register . An IRFA must contain: (1) a description of the reasons why action by the agency is being considered; (2) a succinct statement of the objectives of, and legal basis for, the proposed rule; (3) a description of and, where feasible, an estimate of the number of small entities to which the proposed rule will apply; (4) a description of the projected reporting, recordkeeping, and other compliance requirements of the proposed rule, including an estimate of the classes of small entities that will be subject to the requirements and the type of professional skills necessary for preparation of the report or record; (5) an identification, to the extent practicable, of all relevant Federal rules that may duplicate, overlap with, or conflict with the proposed rule; and (6) a description of any significant alternatives to the proposed rule that accomplish its stated objectives. The OCC currently supervises 1,030 institutions (commercial banks, trust companies, Federal savings associations, and branches or agencies of foreign banks), 58 of which approximately 609 are small entities under the RFA. 59 58 Based on data accessed using the OCC's Financial Institutions Data Retrieval System on May 8, 2025. 59 The OCC bases its estimate of the number of small entities on the Small Business Administration's size thresholds for commercial banks and savings institutions, and trust companies, which are $850 million and $47 million, respectively. Consistent with the General Principles of Affiliation, 13 CFR 121.103(a), the OCC counted the assets of affiliated financial institutions when determining if it should classify an OCC-supervised institution as a small entity. The OCC used average quarterly assets in 2024 to determine size because a “financial institution's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.” See footnote 8 of the U.S. Small Business Administration's Table of Size Standards. Because of the preliminary injunction enjoining the 2023 CRA Final Rule, the OCC used the 1995 CRA regulations as the baseline in its RFA analysis. Using this baseline, the OCC estimates the cost of the proposal to be de minimis because the proposed rule would return to the 1995 regulation, which is currently applicable to banks. Therefore, the OCC certifies that this proposal, if adopted, will not have a significant economic impact on a substantial number of small entities. Accordingly, an initial Regulatory Flexibility Analysis is not required. Board. The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), requires an agency to consider whether the rules it proposes will have a significant economic impact on a substantial number of small entities. In connection with a proposed rule, the RFA generally requires an agency to prepare an Initial Regulatory Flexibility Analysis (IRFA) describing the impact of the rule on small entities, unless the head of the agency certifies that the proposal will not have a significant economic impact on a substantial number of small entities and publishes such certification along with a statement providing the factual basis for such certification in the Federal Register . An IRFA must contain (i) a description of the reasons why action by the agency is being considered; (ii) a succinct statement of the objectives of, and legal basis for, the proposal; (iii) a description of, and, where feasible, an estimate of the number of small entities to which the proposal will apply; (iv) a description of the projected reporting, recordkeeping, and other compliance requirements of the proposal, including an estimate of the classes of small entities that will be subject to the requirement and the type of professional skills necessary for preparation of the report or record; (v) an identification, to the extent practicable, of all relevant Federal rules that may duplicate, overlap with, or conflict with the proposal; and (vi) a description of any significant alternatives to the proposal that accomplish its stated objectives and minimize any significant economic impact of the proposal on small entities. The Board is providing an IRFA with respect to the proposal. The Board invites comment on all aspects of this IRFA. 1. Reasons Action Is Being Considered The Board proposes to rescind the 2023 CRA Final Rule and replace it with the 1995 CRA regulations, with conforming amendments to the definition of “small bank.” Together with the other agencies, the Board believes that the proposal would restore certainty in the CRA framework for stakeholders and limit regulatory burden on banks, while ensuring that banks continue to focus on the purpose of the CRA. As described above, banks currently operate under the framework of the 1995 regulations. 2. Objectives of and Legal Basis for the Proposal Section 806 of the CRA (12 U.S.C. 2905) requires the Board to publish regulations to carry out the purposes of the CRA. The Board's and the other agencies' reconsideration of the 2023 CRA Final Rule is precipitated primarily by the uncertainty created by the pending litigation. Accordingly, the agencies have reconsidered the status of the CRA regulatory framework with two major objectives in mind: (1) restoring certainty in the CRA regulatory framework for stakeholders; and (2) limiting regulatory burden on banks. Further, the agencies took into account that any changes to the proposed CRA regulatory framework must continue to focus on the CRA's purpose—encouraging banks to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of the banks. The agencies' assessment of these objectives, as well as additional considerations that informed the agencies' reconsideration of the CRA regulatory framework, are discussed in section III of this SUPPLEMENTARY INFORMATION . 3. Description and Estimate of the Number of Small Entities Board-supervised institutions that would be subject to the proposed rule are State member banks (as defined in section 3(d)(2) of the Federal Deposit Insurance Act) and uninsured State branches of foreign banks (other than limited branches) resulting from certain acquisitions under the International Banking Act. Banks that do not perform commercial or retail banking services by granting credit to the public in the ordinary course of business would not be subject to the proposal. The Board generally uses the industry-specific size standards adopted by the SBA for purposes of estimating the number of small entities to which a proposal would apply. 60 The SBA has adopted size standards that provide that depository institutions with average assets of less than $850 million over the preceding year (based on the institution's four quarterly financial statements) are considered small entities. 61 The Board estimates that approximately 446 Board-supervised small entities would be subject to the proposed rule. 62 60 See 13 CFR 121.201. Consistent with the SBA's General Principles of Affiliation, the Board generally includes the assets of all domestic and foreign affiliates toward the applicable size threshold when determining whether to classify a particular entity as a small entity. See 13 CFR 121.103. 61 See 13 CFR 121.201 (sectors 522110-522180). 62 The Board's estimate is based on total assets reported on Forms FR Y-9 (Consolidated Financial Statements for Holding Companies) and FFIEC 041 (Consolidated Reports of Condition and Income) for 2024. 4. Description of Compliance Requirements The proposal would recodify the 1995 CRA regulations currently applicable to banks, with updated asset-size thresholds for the definition of “small bank” to reflect the agencies' inflation adjustments for 2025. In general, the CRA framework establishes the performance tests and standards that the Board uses to assess a bank's CRA performance and adopts related requirements (including reporting, recordkeeping, disclosure, and other compliance requirements) to facilitate CRA evaluations. A fuller description of the proposal, including reporting, recordkeeping, disclosure, and other compliance requirements, is provided in sections IV and VII (Paperwork Reduction Act) of this SUPPLEMENTARY INFORMATION . 5. Duplicative, Overlapping, and Conflicting Rules The Board is not aware of any federal rules that may duplicate, overlap with, or conflict with the proposal. 6. Significant Alternatives Considered As an alternative to the proposal, the Board (together with the other agencies) considered maintaining the 2023 CRA Final Rule, proposing to replace the 2023 CRA Final Rule with a new CRA framework that is materially different from the framework contained in the 2023 CRA rule, and proposing targeted amendments to the 2023 CRA Final Rule. The agencies' analysis of each of these alternatives is discussed in section III of this SUPPLEMENTARY INFORMATION . FDIC. The RFA generally requires an agency, in connection with a proposed rule, to prepare and make available for public comment an initial regulatory flexibility analysis that describes the impact of the proposed rule on small entities. 63 However, an IRFA is not required if the agency certifies that the proposed rule will not, if promulgated, have a significant economic impact on a substantial number of small entities. The Small Business Administration (SBA) has defined “small entities” to include banking organizations with total assets of less than or equal to $850 million. 64 Generally, the FDIC considers a significant economic impact to be a quantified effect in excess of 5 percent of total annual salaries and benefits or 2.5 percent of total noninterest expenses. The FDIC believes that effects in excess of one or more of these thresholds typically represent significant economic impacts for FDIC-supervised institutions. The FDIC believes that the proposed rule is unlikely to have a significant impact on a substantial number of small entities. The FDIC's rationale for its determination is discussed below. 63 5 U.S.C. 601 et seq. 64 The SBA defines a small banking organization as having $850 million or less in assets, where an organization's “assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.” See 13 CFR 121.201 (as amended by 87 FR 69118, effective December 19, 2022). In its determination, the “SBA counts the receipts, employees, or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates.” See 13 CFR 121.103. Following these regulations, the FDIC uses an insured depository institution's affiliated and acquired assets, averaged over the preceding four quarters, to determine whether the insured depository institution is “small” for the purposes of RFA. As of December 31, 2024, there are 2,854 FDIC-supervised IDIs, of which 2,122 are “small entities” under the RFA. 65 Of these, 2,116 are subject to the CRA and covered by the proposal. As discussed in the Supplementary Information , the proposal would return the CRA examination framework to the framework in place prior to the adoption of the 2023 CRA Final Rule. The 2023 CRA Final Rule was enjoined by court order on March 29, 2024, therefore it never went into effect and small entities have instead been subject to the CRA framework in the proposed rule. Thus, if the proposal is adopted, small entities would experience no change in their CRA examination framework. Therefore, the FDIC certifies that the proposed rule will not have a significant impact on a substantial number of small entities. 65 FDIC Call Report Data, December 31, 2024. The FDIC invites comments on all aspects of the supporting information provided in this RFA section. The FDIC is particularly interested in comments on any significant effects on small entities that the agency has not identified. OCC Unfunded Mandates Reform Act The OCC has analyzed the proposed rule under the factors in the Unfunded Mandates Reform Act of 1995 (UMRA). 66 Under this analysis, the OCC considered whether the proposed rule includes a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year ($187 million as adjusted annually for inflation). Pursuant to section 202 of the UMRA, 67 if a proposed rule meets this UMRA threshold, the OCC would need to prepare a written statement that includes, among other things, a cost-benefit analysis of the proposal. 66 2 U.S.C. 1531 et seq. 67 2 U.S.C. 1532. Because the 2023 CRA Final Rule did not take effect, the OCC used the 1995 CRA regulations as the baseline in its UMRA analysis. Using this baseline, the OCC estimates the cost of the proposal to be de minimis because the proposed rule would return to the 1995 regulation, which is currently applicable to banks. Therefore, the OCC concludes that the proposed rule would not result in an expenditure of $187 million or more annually by state, local, and tribal governments, or by the private sector, and thus would not meet the UMRA threshold. Accordingly, the OCC has not prepared the written statement described in UMRA. Riegle Community Development and Regulatory Improvement Act of 1994 Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act of 1994, 12 U.S.C. 4802(a), in determining the effective date and administrative compliance requirements for new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions, the agencies will consider, consistent with principles of safety and soundness and the public interest: (1) any administrative burdens that the proposed rule would place on depository institutions, including small depository institutions and customers of depository institutions; and (2) the benefits of the proposed rule. The agencies request comment on any administrative burdens that the proposed rule would place on depository institutions, including small depository institutions, and their customers, and the benefits of the proposed rule that the agencies should consider in determining the effective date and administrative compliance requirements for a final rule. Executive Orders 12866 and 14192 Executive Order 12866, as amended, provides that the Office of Information and Regulatory Affairs (OIRA) will review all “significant regulatory actions” as defined therein. OIRA has determined that this proposal is not a “significant regulatory action” for purposes of Executive Order 12866. The proposal, if finalized as proposed, is not expected to be an Executive Order 14192 regulatory action. Plain Language Section 722 of the Gramm-Leach-Bliley Act requires the agencies to use plain language in all proposed and final rules published after January 1, 2000. The agencies invite comment on how to make this proposed rule easier to understand. For example: • Have the agencies organized the material to inform your needs? If not, how could the agencies present the proposed rule more clearly? • Are the requirements in the proposed rule clearly stated? If not, how could the proposal be more clearly stated? • Does the proposed regulation contain technical language or jargon that is not clear? If so, which language requires clarification? • Would a different format (grouping and order of sections, use of headings, paragraphing) make the proposed regulation easier to understand? If so, what changes would achieve that? • Is this section format adequate? If not, which of the sections should be changed and how? • What other changes can the agencies incorporate to make the proposed regulation easier to understand? Paperwork Reduction Act Certain provisions of the proposed rule contain “collections of information” within the meaning of the Paperwork Reduction Act (PRA) of 1995, 44 U.S.C. 3501 through 3521. In accordance with the requirements of the PRA, the agencies may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid OMB control number. The information collections contained in the proposed rule have been submitted to OMB for review and approval by the OCC and the FDIC under section 3507(d) of the PRA, 44 U.S.C. 3507(d), and § 1320.11 of OMB's implementing regulations, 5 CFR part 1320. The Board reviewed the proposed rule under the authority delegated to the Board by OMB. The agencies are proposing to extend for three years, with revision, these information collections. Title of Information Collection: OCC, Community Reinvestment Act; Board, Reporting, Recordkeeping, and Disclosure Requirements Associated with Regulation BB; FDIC, Community Reinvestment Act. OMB Control Numbers: OCC 1557-0160; Board 7100-0197; FDIC 3064-0092. Frequency of Response: On occasion. Affected Public: Businesses or other for-profits. Respondents: OCC: National banks, Federal savings associations, Federal branches and agencies. FDIC: All insured state nonmember banks, insured state-licensed branches of foreign banks, insured state savings associations, and bank service providers. Board: All state member banks (as defined in 12 CFR 208.2(g)), bank holding companies (as defined in 12 U.S.C. 1841), savings and loan holding companies (as defined in 12 U.S.C. 1467a), foreign banking organizations (as defined in 12 CFR 211.21(o)), foreign banks that do not operate an insured branch, state branch or state agency of a foreign bank (as defined in 12 U.S.C. 3101(11) and (12)), Edge or agreement corporations (as defined in 12 CFR 211.1(c)(2) and (3)), and bank service providers. The information collection requirements in the proposed rule are as follows: Reporting Requirements § __.25(b)—Request for designation as a wholesale or a limited purpose bank. The appropriate Federal banking agency would assess a wholesale or a limited purpose banks record of helping to meet the credit needs of its assessment area(s) under the community development test for wholesale or limited purpose banks through its community development lending, qualified investments, or community development services. 68 In order to receive a designation as a wholesale or limited purpose bank, a bank would be required to file a request, in writing, with the appropriate Federal banking agency at least three months prior to the proposed effective date of the designation. 69 68 Proposed 12 CFR __.25(a). 69 Proposed 12 CFR __.25(b). § __.27—Strategic plan. A bank could elect to be assessed under a strategic plan if the bank has submitted the plan to the appropriate Federal banking agency as provided for in proposed§ __.27, the appropriate Federal banking agency has approved the plan, the plan is in effect, and the bank has been operating under an approved plan for at least one year. 70 The appropriate Federal banking agency's approval of a plan would not affect the bank's obligation, if any, to comply with the data reporting requirements under proposed § __.42. 71 The plan could have a term of no more than five years and any multiyear plan would be required to include annual interim measurable goals; a bank with more than one assessment area could prepare a single plan for all of its assessment areas or one or more plans for one or more of its assessment areas; and affiliated institutions could prepare a joint plan if the plan provides measurable goals for each institution. 72 Before submitting a plan to the appropriate Federal banking agency or amending a plan during its term, a bank would be required to seek suggestions from members of the public in its assessment area(s), formally solicit public comment for at least 30 days, and during the period of formal public comment make copies of the plan available for public review at its offices in assessment areas covered by the plan at no cost and by mail for a reasonable cost. 73 The bank would be required to submit its plan to the appropriate Federal banking agency at least three months prior to the proposed effective date of the plan and also submit with its plan a description of its informal efforts to seek suggestions from members of the public, any written public comment received, and, if the plan was revised in light of the comment received, the initial plan as released for public comment. 74 A strategic plan would be required to include measurable goals for helping meet the credit needs of each assessment area covered by the plan, addressing lending, investment, and service activities, as appropriate. 75 A bank could submit additional information to the appropriate Federal banking agency on a confidential basis, but the goals stated in the plan would be required to be sufficiently specific to enable the public and the appropriate Federal banking agency to judge the merits of the plan. 76 A plan would be required to specify goals that constitute “Satisfactory” performance and could specify goals that constitute “Outstanding” performance. 77 If a bank fails to meet substantially its own goals for “Satisfactory” performance, the bank could elect in its plan to be evaluated under the applicable performance test(s) specified in the regulation. 78 The appropriate Federal banking agency would act upon a plan within 60 calendar days after the agency receives the complete plan and other material that would be required under proposed § __.27(e). 79 During the term of a plan, a bank could request the appropriate Federal banking agency to approve an amendment to the plan on grounds that there has been a material change in circumstances and the bank would be required to develop an amendment to a previously approved plan in accordance with the public participation requirements of proposed § __.27(d). 80 The appropriate Federal banking agency would approve the goals and assesses performance under a plan as provided for in appendix A (Ratings). 81 70 Proposed 12 CFR __.27(a)(1) and (e). 71 Proposed 12 CFR __.27(b). 72 Proposed 12 CFR __.27(c). 73 Proposed 12 CFR __.27(d) and (h). 74 Proposed 12 CFR __.27(e). 75 Proposed 12 CFR __.27(f)(1). 76 Proposed 12 CFR __.27(f)(2). 77 Proposed 12 CFR __.27(f)(3). 78 Proposed 12 CFR __.27(f)(4). 79 Proposed 12 CFR __.27(g). 80 Proposed 12 CFR __.27(h). 81 Proposed 12 CFR __.27(i). § __.42(b)(1)-(3)—Loan information required to be reported. A bank, except a small bank or a bank that was a small bank during the prior calendar year, would be required to report annually by March 1 to the appropriate Federal banking agency in machine-readable form (as prescribed by the agency) the following data for the preceding calendar year. 82 82 Proposed 12 CFR __.42(b). Small business and small farm loan data. For each geography in which the bank originated or purchased a small business or a small farm loan, it would be required to report the aggregate number and amount of loans: • with an amount at origination of $100,000 or less; • with an amount at origination of more than $100,000 but less than or equal to $250,000; • with an amount at origination of more than $250,000; and • to businesses and farms with gross annual revenues of $1 million or less (using the revenues that the bank considered in making its credit decision). 83 83 Proposed 12 CFR __.42(b)(1). Community development loan data. The aggregate number and aggregate amount of community development loans originated or purchased in the preceding calendar year. 84 84 Proposed 12 CFR __.42(b)(2). Home mortgage loans. If the bank is subject to reporting of home mortgage loan data under Regulation C, it would be required to report annually by March 1 to the appropriate Federal banking agency in machine-readable form (as prescribed by the agency) certain home mortgage loan data. 85 The paperwork burden for providing this data is associated with other clearances. 86 85 Proposed 12 CFR __.42(b)(3). 86 See HMDA Loan/Application Register (FR HMDA LAR; OMB No. 7100-0247 (Board) and OMB No. 3170-0008 (Consumer Financial Protection Bureau [CFPB])). § __.42(d)—Data on affiliate lending. A bank that elected to have the appropriate Federal banking agency consider loans by an affiliate, for purposes of the lending test or the community development test or an approved strategic plan, would be required to collect, maintain, and report for those loans the data that the bank would have collected, maintained, and reported pursuant to proposed§ __.42(a)-(c) had the loans been originated or purchased by the bank. For home mortgage loans, the bank would also be required to be prepared to identify the home mortgage loans reported under Regulation C by the affiliate. 87 87 Proposed 12 CFR __.42(d). § __.42(e)—Data on lending by a consortium or a third party. A bank that elects to have the appropriate Federal banking agency consider community development loans made by a consortium or a third party, for purposes of the lending test or the community development test or an approved strategic plan, must report for those loans the data that the bank would have reported under proposed§ __.42(b)(2) had the loans been originated or purchased by the bank. 88 88 Proposed 12 CFR __.42(e). § __.42(f)—Small banks electing evaluation under the lending, investment, and service tests. A bank that qualifies for evaluation under the small bank performance standards but elects evaluation under the lending, investment, and service test would be required to collect, maintain, and report the data required for other banks pursuant to proposed § __.42(a)-(b). §§ __.41 and __42(g)—Assessment area delineation. Each bank would be required to delineate one or more assessment areas within which the appropriate Federal banking agency would evaluate its record of helping to meet the credit needs of its community. 89 A bank, except a small bank or bank that was a small bank during the prior calendar year, would also be required to collect and report to the appropriate Federal banking agency by March 1 of each year a list for each assessment area showing the geographies within the area. 90 Assessment areas for wholesale or limited purpose banks would be required to consist generally of one or more MSAs or metropolitan divisions (using the MSA or metropolitan division boundaries that were in effect as of January 1 of the calendar year in which the delineation is made) or one or more contiguous political subdivisions, such as counties, cities, or towns. 91 Assessment areas for a bank other than a wholesale or limited purpose bank would be required to consist generally of one or more MSAs or metropolitan divisions (using the MSA or metropolitan division boundaries that were in effect as of January 1 of the calendar year in which the delineation is made) or one or more contiguous political subdivisions, such as counties, cities, or towns. 92 Assessment areas for a bank other than a wholesale or limited purpose bank would also be required to include the geographies in which a bank has its main office, branches, and deposit-taking automated teller machines, as well as the surrounding geographies in which the bank has originated or purchased a substantial portion of its loans. 93 Each bank's assessment area would be required to consist only of whole geographies, not reflect illegal discrimination, not arbitrarily exclude low- or moderate-income geographies, taking into account the bank's size and financial condition, and not extend substantially beyond an MSA boundary or beyond a state boundary unless the assessment area is located in a multistate MSA. 94 89 Proposed 12 CFR __.41(a). 90 Proposed 12 CFR __.42(g). 91 Proposed 12 CFR __.41(b). 92 Proposed 12 CFR __.41(c)(1). 93 Proposed 12 CFR __.41(c)(2). 94 Proposed 12 CFR __.41(e). Recordkeeping Requirements § __.42(a)—Loan information required to be collected and maintained. A bank, except a small bank, would be required to collect and maintain, in machine-readable form (as prescribed by the appropriate Federal banking agency), until the completion of its next CRA examination, the following data for each small business or small farm loan originated or purchased by the bank: • a unique number or alphanumeric symbol used to identify the relevant loan file; • the loan amount at origination; • the loan location; and • an indicator whether the loan was to a business or a farm with gross annual revenues of $1 million or less. 95 95 Proposed 12 CFR __.42(a). § __.42(c)(1)—Optional data collection and maintenance—Consumer loans. A bank could collect and maintain in machine-readable form (as prescribed by the appropriate Federal banking agency) data for consumer loans originated or purchased by the bank for consideration under the lending test. 96 A bank could maintain data for one or more of the following categories of consumer loans: motor vehicle; credit card; other secured; and other unsecured. 97 If the bank maintains data for loans in a certain category, it would be required to maintain data for all loans originated or purchased within that category. 98 The bank would be required to maintain data separately for each category and must include for each loan: 96 Proposed 12 CFR __.42(c)(1). 97 Id. 98 Id. • a unique number or alphanumeric symbol used to identify the relevant loan file; • the loan amount at origination or purchase; • the loan location; and • the gross annual income of the borrower that the bank considered in making its credit decision. 99 99 Id. § __.42(c)(2)—Optional data collection and maintenance—Other loan data. At its option, a bank could also provide other information concerning its lending performance, including additional loan distribution data. 100 100 Proposed 12 CFR __.42(c)(2). Disclosure Requirements § __.43—Content and availability of public file. Banks would be required to maintain and make available to the public a file containing comments received from the public for the current year and each of the prior two calendar years that specifically relate to the bank's performance in helping to meet community credit needs, and any response to the comments by the bank, if neither the comments nor the responses contain statements that reflect adversely on the good name or reputation of any persons other than the bank or publication of which would violate specific provisions of law. 101 The public file would also be required to contain a copy of the public section of the bank's most recent CRA performance evaluation prepared by the appropriate Federal banking agency, which the bank would be required to place in the public file within 30 days after its receipt from the agency. 102 The public file would also be required to include: a list of the bank's branches, street addresses, and geographies; a list of bank branches opened or closed by the bank during the current year and each of the prior two calendar years, their street addresses, and geographies; a list of the services generally offered at the bank's branches, descriptions of material differences in the availability or cost of services at particular branches, and at the bank's option, information regarding the availability of alternative systems for delivering retail banking services; and a map of each assessment area showing the boundaries of the area and identifying the geographies contained within the area, either on the map or in a separate list. 103 The bank could include in the file any other information that it chooses. 104 101 Proposed 12 CFR __.43(a)(1). 102 Proposed 12 CFR __.43(a)(2). 103 Proposed 12 CFR __.43(a)(3)-(6). 104 Proposed 12 CFR __.43(a)(7). A bank, except a small bank or bank that was a small bank during the prior calendar year, would also be required to include in the public file the following information pertaining to the bank and its affiliates, if applicable for each of the prior two calendar years. 105 If the bank elects to have one or more categories of its consumer loans considered under the lending test, for each of these categories, the number and amount of loans: to low-, moderate-, middle-, and upper-income individuals; located in low-, moderate-, middle-, and upper-income census tracts; and located inside the bank's assessment area(s) and outside the bank's assessment area(s). 106 The bank would also be required to place its CRA Disclosure Statement in the public file within three business days of its receipt from the appropriate Federal banking agency. 107 Banks required to report data pursuant to Regulation C would be required to include in the public file a written notice that the institution's HMDA Disclosure Statement may be obtained on the CFPB's website at www.consumerfinance.gov/hmda. 108 In addition, a bank that elects to have the appropriate Federal banking agency consider home mortgage lending of an affiliate would be required to include in the public file the name of the affiliate and a written notice that the affiliate's HMDA Disclosure Statement may be obtained at the CFPB's website. 109 The bank would also be required to place the written notice(s) in the public file within three business days after receiving notification from the Federal Financial Institutions Examination Council of the disclosure statement(s) availability. 110 105 Proposed 12 CFR __.43(b)(1). 106 Proposed 12 CFR __.43(b)(1)(i). 107 Proposed 12 CFR __.43(b)(1)(ii). 108 Proposed 12 CFR __.43(b)(2). 109 Id. 110 Id. A small bank or a bank that was a small bank during the prior calendar year would be required to include in its public file the bank's loan-to-deposit ratio for each quarter of the prior calendar year and, at its option, additional data on its loan-to-deposit ratio. 111 The bank would also be required to include in its public file the information required for other banks by proposed § __.43(b)(1), if the bank has elected to be evaluated under the lending, investment, and service tests. 112 A bank that has been approved to be assessed under a strategic plan would be required to include in its public file a copy of that plan but would not be required to include information submitted to the appropriate Federal banking agency on a confidential basis in conjunction with the plan. 113 A bank that received a less than satisfactory rating during its most recent examination would be required to include in its public file a description of its current efforts to improve its performance in helping to meet the credit needs of its entire community and would be required to update the description quarterly. 114 111 Proposed 12 CFR __.43(b)(3)(i). 112 Proposed 12 CFR __.43(b)(3)(ii). 113 Proposed 12 CFR __.43(b)(4). 114 Proposed 12 CFR __.43(b)(5). A bank would be required to make available to the public for inspection upon request and at no cost the information required in proposed § __.43 as follows. 115 At the main office and, if an interstate bank, at one branch office in each state, all information in the public file. 116 At each branch, a copy of the public section of the bank's most recent CRA Performance Evaluation and a list of services provided by the branch as well as, within five calendar days of the request, all the information in the public file relating to the assessment area in which the branch is located. 117 Upon request, a bank would be required to provide copies, either on paper or in another form acceptable to the person making the request, of the information in its public file and the bank may charge a reasonable fee not to exceed the cost of copying and mailing (if applicable). 118 Except as otherwise provided in proposed § __.43, a bank would be required to ensure that the information required by this section is current as of April 1 of each year. 119 115 Proposed 12 CFR __.43(c). 116 Proposed 12 CFR __.43(c)(1). 117 Proposed 12 CFR __.43(c)(2). 118 Proposed 12 CFR __.43(d). 119 Proposed 12 CFR __.43(e). § __.44—Public notice by banks. A bank must provide in the public lobby of its main office and in each of its branches the appropriate notice set forth in appendix B (CRA Notice) of, as applicable, 12 CFR part 25, 12 CFR part 228, or 12 CFR part 345. 120 120 Proposed 12 CFR __.44. Burden Estimates Source and type of burden Description Estimated number of respondents Frequency of response Average estimated time per response Total estimated annual burden Reporting §§ __.41 and __.42(g) Assessment area delineation OCC 173 1 2 346 Board 152 1 2 304 FDIC 313 1 2 626 § __.42(b)(1) Loan data: Small business and small farm OCC 154 1 8 1,232 Board 148 1 8 1,184 FDIC 313 1 8 2,504 § __.42(b)(2) Loan data: Community development OCC 173 1 13 2,249 Board 152 1 13 1,976 FDIC 313 1 13 4,069 § __.42(b)(3) Loan data: Home mortgage loans OCC 173 1 253 43,769 Board 140 1 253 35,420 FDIC 349 1 253 88,297 Optional Reporting § __.25(b) Request for designation as a wholesale bank or a limited purpose bank OCC 19 1 4 76 Board 1 1 4 4 FDIC 1 1 4 4 § __.27 Strategic plan OCC 14 1 275 3,850 Board 2 1 275 550 FDIC 10 1 400 4,000 § __.42(d) Data on affiliate lending data OCC 25 1 38 950 Board 5 1 38 190 FDIC 304 1 38 11,552 § __.42(e) Data on lending by a consortium or a third party OCC 16 1 17 272 Board 12 1 17 204 FDIC 115 1 17 1,955 § __.42(f) Small banks electing evaluation under the lending, investment, and service tests Covered by Burden in §§ 25.42(a) & (b) OCC Board FDIC Recordkeeping § __.42(a) Small business and small farm loan register OCC 173 1 219 37,887 Board 148 1 219 32,412 FDIC 313 1 219 68,547 Optional Recordkeeping § __.42(c)(1) Consumer loan data OCC 5 1 326 1,630 Board 36 1 326 11,736 FDIC 10 1 326 3,260 § __.42(c)(2) Other loan data OCC 25 1 25 625 Board 26 1 25 650 FDIC 1 1 25 25 Disclosure §§ __.43 and __.44 Public file and public notice OCC 990 1 10 9,900 Board 704 1 10 7,040 FDIC 2,854 1 10 28,540 Total Estimated Annual Burden OCC 102,786 Board 91,670 FDIC 213,379 Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agencies, including whether the information has practical utility; (b) The accuracy of the agencies' estimate of the burden of the collection of information; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Commenters may submit comments regarding the burden estimate, or any other aspect of this collection of information, including suggestions for reducing the burden, to the addresses listed in the ADDRESSES caption in the proposed rule. All comments will become a matter of public record. A copy of the comments may also be submitted to the OMB desk officer for the agencies: By mail to U.S. Office of Management and Budget, 725 17th Street NW, #10235, Washington, DC 20503; or by email to: oira_submission@omb.eop.gov, Attention, Federal Banking Agency Desk Officer. Providing Accountability Through Transparency Act of 2023 The Providing Accountability Through Transparency Act of 2023, 12 U.S.C. 553(b)(4), requires that a notice of proposed rulemaking include the internet address of a summary of not more than 100 words in length of a proposed rule, in plain language, that shall be posted on the internet website www.regulations.gov. In summary, the agencies propose to amend their CRA regulations by rescinding the final rule titled “Community Reinvestment Act” published in the Federal Register on February 1, 2024, and replacing it with the agencies' CRA rule in effect on March 29, 2024, with certain conforming and technical amendments. The agencies are also proposing technical amendments to their regulations implementing the CRA sunshine requirements of the Federal Deposit Insurance Act, and the OCC is proposing technical amendments to its Public Welfare Investments regulation. The proposal and the required summary can be found for the OCC at https://www.regulations.gov by searching for Docket ID OCC-2025-0005; for the Board at https://www.federalreserve.gov/apps/proposals, and for the FDIC at https://www.fdic.gov/resources/regulations/federal-register-publications/index.html. List of Subjects 12 CFR Part 24 Community development, Credit, Investments, Low and moderate income housing, Manpower, National banks, Reporting and recordkeeping requirements, Rural areas, Small businesses. 12 CFR Part 25 Community development, Credit, Investments, National banks, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 35 Community development, Credit, Freedom of information, Investments, National banks, Savings associations, Reporting and recordkeeping requirements. 12 CFR Part 207 Banks, Banking, Community development, Holding companies, Reporting and recordkeeping requirements. 12 CFR Part 228 Banks, banking, Community development, Credit, Investments, Reporting and recordkeeping requirements. 12 CFR Part 345 Banks, banking, Community development, Credit, Investments, Reporting and recordkeeping requirements. 12 CFR Part 346 Banks, banking, Savings associations. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Chapter I Authority and Issuance For the reasons set forth in the common preamble and under the authority of 12 U.S.C. 93a and 2905, the Office of the Comptroller of the Currency proposes to amend chapter I of title 12, Code of Federal Regulations as follows: PART 24—COMMUNITY AND ECONOMIC DEVELOPMENT ENTITIES, COMMUNITY DEVELOPMENT PROJECTS, AND OTHER PUBLIC WELFARE INVESTMENTS 1. The authority citation for part 24 is revised to read as follows: Authority: 12 U.S.C. 24 (Eleventh), 93a, 481, and 1818. § 24.2 [Amended] 2. Amend § 24.2 by: a. In the introductory text of paragraph (c), removing “§ 25.23 of appendix G to 12 CFR part 25” and adding “12 CFR 25.23” in its place. b. In paragraph (f), removing “§ 25.12(m) of appendix G to 12 CFR part 25” and adding “12 CFR 25.12(m)” in its place. § 24.3 [Amended] 3. Amend § 24.3 by removing “§ 25.23 of appendix G to 12 CFR part 25” and adding in its place “12 CFR 25.23”. § 24.7 [Amended] 4. Amend § 24.7 in paragraph (b) by removing “§ 25.23 of appendix G to 12 CFR part 25” and adding in its place “12 CFR 25.23”. 5. Part 25 is revised to read as follows: PART 25—COMMUNITY REINVESTMENT ACT AND INTERSTATE DEPOSIT PRODUCTION REGULATIONS Subpart A—General Sec. 25.11 Authority, purposes, and scope. 25.12 Definitions. Subpart B—Standards for Assessing Performance Sec. 25.21 Performance tests, standards, and ratings, in general. 25.22 Lending test. 25.23 Investment test. 25.24 Service test. 25.25 Community development test for wholesale or limited purpose banks and savings associations. 25.26 Small bank and savings association performance standards. 25.27 Strategic plan. 25.28 Assigned ratings. 25.29 Effect of CRA performance on applications. Subpart C—Records, Reporting, and Disclosure Requirements Sec. 25.41 Assessment area delineation. 25.42 Data collection, reporting, and disclosure. 25.43 Content and availability of public file. 25.44 Public notice by banks and savings associations. 25.45 Publication of planned examination schedule. Subpart D—Transition Provisions Sec. 25.51 Consideration of Bank Activities 25.52 Strategic Plan Retention Subpart E—Prohibition Against Use of Interstate Branches Primarily for Deposit Production Sec. 25.61 Purpose and scope. 25.62 Definitions. 25.63 Loan-to-deposit ratio screen. 25.64 Credit needs determination. 25.65 Sanctions. Appendix A to Part 25—Ratings Appendix B to Part 25—CRA Notice Authority: 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 215a, 481, 1462a, 1463, 1464, 1828(c), 1835a, 2901 through 2908, and 3101 through 3111, and 5412(b)(2)(B). Subpart A—General § 25.11 Authority, purposes, and scope. (a) Authority and OMB control number —(1) Authority. The authority for subparts A, B, C, D, and E is 12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 215a, 481, 1462a, 1463, 1464, 1828(c), 1835a, 2901 through 2908, 3101 through 3111, and 5412(b)(2)(B). (2) OMB control number. The information collection requirements contained in this part were approved by the Office of Management and Budget under the provisions of 44 U.S.C. 3501 et seq. and have been assigned OMB control number 1557-0160. (b) Purposes. In enacting the Community Reinvestment Act (CRA), the Congress required each appropriate Federal financial supervisory agency to assess an institution's record of helping to meet the credit needs of the local communities in which the institution is chartered, consistent with the safe and sound operation of the institution, and to take this record into account in the agency's evaluation of an application for a deposit facility by the institution. This part is intended to carry out the purposes of the CRA by: (1) Establishing the framework and criteria by which the Office of the Comptroller of the Currency (OCC) or the Federal Deposit Insurance Corporation (FDIC), as appropriate, assesses a bank's or savings association's record of helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank or savings association; and (2) Providing that the OCC takes that record into account in considering certain applications. (c) Scope —(1) General. (i) Subparts A, B, C, and D, and Appendices A and B, apply to all banks and savings associations except as provided in paragraphs (c)(2) and (3) of this section. Subpart E only applies to banks. (ii) With respect to subparts A, B, C, and D, and Appendices A and B— (A) The OCC has the authority to prescribe these regulations for national banks, Federal savings associations, and State savings associations and has the authority to enforce these regulations for national banks and Federal savings associations. (B) The FDIC has the authority to enforce these regulations for State savings associations. (iii) With respect to subparts A, B, C, and D, and appendix A, references to appropriate Federal banking agency will mean the OCC when the institution is a national bank or Federal savings association and the FDIC when the institution is a State savings association. (2) Federal branches and agencies. (i) This part applies to all insured Federal branches and to any Federal branch that is uninsured that results from an acquisition described in section 5(a)(8) of the International Banking Act of 1978 (12 U.S.C. 3103(a)(8)). (ii) Except as provided in paragraph (c)(2)(i) of this section, this part does not apply to Federal branches that are uninsured, limited Federal branches, or Federal agencies, as those terms are defined in part 28 of this chapter. (3) Certain special purpose banks and savings associations. This part does not apply to special purpose banks or special purpose savings associations that do not perform commercial or retail banking services by granting credit to the public in the ordinary course of business, other than as incident to their specialized operations. These banks or savings associations include banker's banks, as defined in 12 U.S.C. 24 (Seventh), and banks or savings associations that engage only in one or more of the following activities: Providing cash management controlled disbursement services or serving as correspondent banks or savings associations, trust companies, or clearing agents. § 25.12 Definitions. For purposes of subparts A, B, C, and D, and appendices A and B, of this part, the following definitions apply: (a) Affiliate means any company that controls, is controlled by, or is under common control with another company. The term “control” has the meaning given to that term in 12 U.S.C. 1841(a)(2), and a company is under common control with another company if both companies are directly or indirectly controlled by the same company. (b) Area median income means: (1) The median family income for the MSA, if a person or geography is located in an MSA, or for the metropolitan division, if a person or geography is located in an MSA that has been subdivided into metropolitan divisions; or (2) The statewide nonmetropolitan median family income, if a person or geography is located outside an MSA. (c) Assessment area means a geographic area delineated in accordance with § 25.41. (d) Automated teller machine (ATM) means an automated, unstaffed banking facility owned or operated by, or operated exclusively for, the bank or savings association at which deposits are received, cash dispersed, or money lent. (e) (1) Bank or savings association means, except as provided in § 25.11(c), a national bank (including a Federal branch as defined in part 28 of this chapter) with Federally insured deposits or a savings association; (2) Bank and savings association means, except as provided in § 25.11(c), a national bank (including a Federal branch as defined in part 28 of this chapter) with Federally insured deposits and a savings association. (f) Branch means a staffed banking facility authorized as a branch, whether shared or unshared, including, for example, a mini-branch in a grocery store or a branch operated in conjunction with any other local business or nonprofit organization. (g) Community development means: (1) Affordable housing (including multifamily rental housing) for low- or moderate-income individuals; (2) Community services targeted to low- or moderate-income individuals; (3) Activities that promote economic development by financing businesses or farms that meet the size eligibility standards of the Small Business Administration's Development Company or Small Business Investment Company programs (13 CFR 121.301) or have gross annual revenues of $1 million or less; or (4) Activities that revitalize or stabilize— (i) Low-or moderate-income geographies; (ii) Designated disaster areas; or (iii) Distressed or underserved nonmetropolitan middle-income geographies designated by the Board of Governors of the Federal Reserve System, FDIC, and the OCC, based on— (A) Rates of poverty, unemployment, and population loss; or (B) Population size, density, and dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community needs, including needs of low- and moderate-income individuals. (h) Community development loan means a loan that: (1) Has as its primary purpose community development; and (2) Except in the case of a wholesale or limited purpose bank or savings association: (i) Has not been reported or collected by the bank or savings association or an affiliate for consideration in the bank's or savings association's assessment as a home mortgage, small business, small farm, or consumer loan, unless the loan is for a multifamily dwelling (as defined in § 1003.2(n) of this title); and (ii) Benefits the bank's or savings association's assessment area(s) or a broader statewide or regional area(s) that includes the bank's or savings association's assessment area(s). (i) Community development service means a service that: (1) Has as its primary purpose community development; (2) Is related to the provision of financial services; and (3) Has not been considered in the evaluation of the bank's or savings association's retail banking services under § 25.24(d). (j) Consumer loan means a loan to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage, small business, or small farm loan. Consumer loans include the following categories of loans: (1) Motor vehicle loan, which is a consumer loan extended for the purchase of and secured by a motor vehicle; (2) Credit card loan, which is a line of credit for household, family, or other personal expenditures that is accessed by a borrower's use of a “credit card,” as this term is defined in § 1026.2 of this title; (3) Other secured consumer loan, which is a secured consumer loan that is not included in one of the other categories of consumer loans; and (4) Other unsecured consumer loan, which is an unsecured consumer loan that is not included in one of the other categories of consumer loans. (k) Geography means a census tract delineated by the United States Bureau of the Census in the most recent decennial census. (l) Home mortgage loan means a closed-end mortgage loan or an open-end line of credit as these terms are defined under § 1003.2 of this title, and that is not an excluded transaction under § 1003.3(c)(1) through (10) and (13) of this title. (m) Income level includes: (1) Low-income, which means an individual income that is less than 50 percent of the area median income, or a median family income that is less than 50 percent, in the case of a geography. (2) Moderate-income, which means an individual income that is at least 50 percent and less than 80 percent of the area median income, or a median family income that is at least 50 and less than 80 percent, in the case of a geography. (3) Middle-income, which means an individual income that is at least 80 percent and less than 120 percent of the area median income, or a median family income that is at least 80 and less than 120 percent, in the case of a geography. (4) Upper-income, which means an individual income that is 120 percent or more of the area median income, or a median family income that is 120 percent or more, in the case of a geography. (n) Limited purpose bank or savings association means a bank or savings association that offers only a narrow product line (such as credit card or motor vehicle loans) to a regional or broader market and for which a designation as a limited purpose bank or savings association is in effect, in accordance with § 25.25(b). (o) Loan location. A loan is located as follows: (1) A consumer loan is located in the geography where the borrower resides; (2) A home mortgage loan is located in the geography where the property to which the loan relates is located; and (3) A small business or small farm loan is located in the geography where the main business facility or farm is located or where the loan proceeds otherwise will be applied, as indicated by the borrower. (p) Loan production office means a staffed facility, other than a branch, that is open to the public and that provides lending-related services, such as loan information and applications. (q) Metropolitan division means a metropolitan division as defined by the Director of the Office of Management and Budget. (r) MSA means a metropolitan statistical area as defined by the Director of the Office of Management and Budget. (s) Nonmetropolitan area means any area that is not located in an MSA. (t) Qualified investment means a lawful investment, deposit, membership share, or grant that has as its primary purpose community development. (u) Small bank or savings association —(1) Definition. Small bank or savings association means a bank or savings association that, as of December 31 of either of the prior two calendar years, had assets of less than $1.609 billion. Intermediate small bank or savings association means a small bank or savings association with assets of at least $402 million as of December 31 of both of the prior two calendar years and less than $1.609 billion as of December 31 of either of the prior two calendar years. The dollar figures in this paragraph are applicable to banks and savings associations for calendar year 2025 and are updated annually pursuant to paragraph (u)(2). (2) Adjustment. The OCC adjusts and publishes the dollar figures in paragraph (u)(1) of this section annually on its website, www.OCC.gov. This adjustment is based on the year-to-year change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for each twelve-month period ending in November, with rounding to the nearest million. (v) Small business loan means a loan included in “loans to small businesses” as defined in the instructions for preparation of the Consolidated Report of Condition and Income. (w) Small farm loan means a loan included in “loans to small farms” as defined in the instructions for preparation of the Consolidated Report of Condition and Income. (x) Wholesale bank or savings association means a bank or savings association that is not in the business of extending home mortgage, small business, small farm, or consumer loans to retail customers, and for which a designation as a wholesale bank or savings association is in effect, in accordance with § 25.25(b). Subpart B—Standards for Assessing Performance § 25.21 Performance tests, standards, and ratings, in general. (a) Performance tests and standards. The appropriate Federal banking agency assesses the CRA performance of a bank or savings association in an examination as follows: (1) Lending, investment, and service tests. The appropriate Federal banking agency applies the lending, investment, and service tests, as provided in §§ 25.22 through 25.24, in evaluating the performance of a bank or savings association, except as provided in paragraphs (a)(2), (3), and (4) of this section. (2) Community development test for wholesale or limited purpose banks and savings associations. The appropriate Federal banking agency applies the community development test for a wholesale or limited purpose bank or savings association, as provided in § 25.25, except as provided in paragraph (a)(4) of this section. (3) Small bank and savings association performance standards. The appropriate Federal banking agency applies the small bank or savings association performance standards as provided in § 25.26 in evaluating the performance of a small bank or savings association or a bank or savings association that was a small bank or savings association during the prior calendar year, unless the bank or savings association elects to be assessed as provided in paragraphs (a)(1), (2), or (4) of this section. The bank or savings association may elect to be assessed as provided in paragraph (a)(1) of this section only if it collects and reports the data required for other banks or savings associations under § 25.42. (4) Strategic plan. The appropriate Federal banking agency evaluates the performance of a bank or savings association under a strategic plan if the bank or savings association submits, and the appropriate Federal banking agency approves, a strategic plan as provided in § 25.27. (b) Performance context. The appropriate Federal banking agency applies the tests and standards in paragraph (a) of this section and also considers whether to approve a proposed strategic plan in the context of: (1) Demographic data on median income levels, distribution of household income, nature of housing stock, housing costs, and other relevant data pertaining to a bank's or savings association's assessment area(s); (2) Any information about lending, investment, and service opportunities in the bank's or savings association's assessment area(s) maintained by the bank or savings association or obtained from community organizations, state, local, and tribal governments, economic development agencies, or other sources; (3) The bank's or savings association's product offerings and business strategy as determined from data provided by the bank or savings association; (4) Institutional capacity and constraints, including the size and financial condition of the bank or savings association, the economic climate (national, regional, and local), safety and soundness limitations, and any other factors that significantly affect the bank's or savings association's ability to provide lending, investments, or services in its assessment area(s); (5) The bank's or savings association's past performance and the performance of similarly situated lenders; (6) The bank's or savings association's public file, as described in § 25.43, and any written comments about the bank's or savings association's CRA performance submitted to the bank or savings association or the appropriate Federal banking agency; and (7) Any other information deemed relevant by the appropriate Federal banking agency. (c) Assigned ratings. The appropriate Federal banking agency assigns to a bank or savings association one of the following four ratings pursuant to § 25.28 and appendix A of this part: “outstanding”; “satisfactory”; “needs to improve”; or “substantial noncompliance” as provided in 12 U.S.C. 2906(b)(2). The rating assigned by the appropriate Federal banking agency reflects the bank's or savings association's record of helping to meet the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the bank or savings association. (d) Safe and sound operations. This part and the CRA do not require a bank or savings association to make loans or investments or to provide services that are inconsistent with safe and sound operations. To the contrary, the appropriate Federal banking agency anticipates banks and savings associations can meet the standards of this part with safe and sound loans, investments, and services on which the banks and savings associations expect to make a profit. Banks and savings associations are permitted and encouraged to develop and apply flexible underwriting standards for loans that benefit low- or moderate-income geographies or individuals, only if consistent with safe and sound operations. (e) Low-cost education loans provided to low-income borrowers. In assessing and taking into account the record of a bank or savings association under this part, the appropriate Federal banking agency considers, as a factor, low-cost education loans originated by the bank or savings association to borrowers, particularly in its assessment area(s), who have an individual income that is less than 50 percent of the area median income. For purposes of this paragraph, “low-cost education loans” means any education loan, as defined in section 140(a)(7) of the Truth in Lending Act (15 U.S.C. 1650(a)(7)) (including a loan under a State or local education loan program), originated by the bank or savings association for a student at an “institution of higher education,” as that term is generally defined in sections 101 and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002) and the implementing regulations published by the U.S. Department of Education, with interest rates and fees no greater than those of comparable education loans offered directly by the U.S. Department of Education. Such rates and fees are specified in section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e). (f) Activities in cooperation with minority- or women-owned financial institutions and low-income credit unions. In assessing and taking into account the record of a nonminority-owned and nonwomen-owned bank or savings association under this part, the appropriate Federal banking agency considers as a factor capital investment, loan participation, and other ventures undertaken by the bank or savings association in cooperation with minority- and women-owned financial institutions and low-income credit unions. Such activities must help meet the credit needs of local communities in which the minority- and women-owned financial institutions and low-income credit unions are chartered. To be considered, such activities need not also benefit the bank's or savings association's assessment area(s) or the broader statewide or regional area(s) that includes the bank's or savings association's assessment area(s). § 25.22 Lending test. (a) Scope of test. (1) The lending test evaluates a bank's or savings association's record of helping to meet the credit needs of its assessment area(s) through its lending activities by considering a bank's or savings association's home mortgage, small business, small farm, and community development lending. If consumer lending constitutes a substantial majority of a bank's or savings association's business, the appropriate Federal banking agency will evaluate the bank's or savings association's consumer lending in one or more of the following categories: motor vehicle, credit card, other secured, and other unsecured loans. In addition, at a bank's or savings association's option, the appropriate Federal banking agency will evaluate one or more categories of consumer lending, if the bank or savings association has collected and maintained, as required in § 25.42(c)(1), the data for each category that the bank or savings association elects to have the appropriate Federal banking agency evaluate. (2) The appropriate Federal banking agency considers originations and purchases of loans. The appropriate Federal banking agency will also consider any other loan data the bank or savings association may choose to provide, including data on loans outstanding, commitments and letters of credit. (3) A bank or savings association may ask the appropriate Federal banking agency to consider loans originated or purchased by consortia in which the bank or savings association participates or by third parties in which the bank or savings association has invested only if the loans meet the definition of community development loans and only in accordance with paragraph (d) of this section. The appropriate Federal banking agency will not consider these loans under any criterion of the lending test except the community development lending criterion. (b) Performance criteria. The appropriate Federal banking agency evaluates a bank's or savings association's lending performance pursuant to the following criteria: (1) Lending activity. The number and amount of the bank's or savings association's home mortgage, small business, small farm, and consumer loans, if applicable, in the bank's or savings association's assessment area(s); (2) Geographic distribution. The geographic distribution of the bank's or savings association's home mortgage, small business, small farm, and consumer loans, if applicable, based on the loan location, including: (i) The proportion of the bank's or savings association's lending in the bank's or savings association's assessment area(s); (ii) The dispersion of lending in the bank's or savings association's assessment area(s); and (iii) The number and amount of loans in low-, moderate-, middle-, and upper-income geographies in the bank's or savings association's assessment area(s); (3) Borrower characteristics. The distribution, particularly in the bank's or savings association's assessment area(s), of the bank's or savings association's home mortgage, small business, small farm, and consumer loans, if applicable, based on borrower characteristics, including the number and amount of: (i) Home mortgage loans to low-, moderate-, middle-, and upper-income individuals; (ii) Small business and small farm loans to businesses and farms with gross annual revenues of $1 million or less; (iii) Small business and small farm loans by loan amount at origination; and (iv) Consumer loans, if applicable, to low-, moderate-, middle-, and upper-income individuals; (4) Community development lending. The bank's or savings association's community development lending, including the number and amount of community development loans, and their complexity and innovativeness; and (5) Innovative or flexible lending practices. The bank's or savings association's use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- or moderate-income individuals or geographies. (c) Affiliate lending. (1) At a bank's or savings association's option, the appropriate Federal banking agency will consider loans by an affiliate of the bank or savings association, if the bank or savings association provides data on the affiliate's loans pursuant to § 25.42. (2) The appropriate Federal banking agency considers affiliate lending subject to the following constraints: (i) No affiliate may claim a loan origination or loan purchase if another institution claims the same loan origination or purchase; and (ii) If a bank or savings association elects to have the appropriate Federal banking agency consider loans within a particular lending category made by one or more of the bank's or savings association's affiliates in a particular assessment area, the bank or savings association shall elect to have the appropriate Federal banking agency consider, in accordance with paragraph (c)(1) of this section, all the loans within that lending category in that particular assessment area made by all of the bank's or savings association's affiliates. (3) The appropriate Federal banking agency does not consider affiliate lending in assessing a bank's or savings association's performance under paragraph (b)(2)(i) of this section. (d) Lending by a consortium or a third party. Community development loans originated or purchased by a consortium in which the bank or savings association participates or by a third party in which the bank or savings association has invested: (1) Will be considered, at the bank's or savings association's option, if the bank or savings association reports the data pertaining to these loans under § 25.42(b)(2); and (2) May be allocated among participants or investors, as they choose, for purposes of the lending test, except that no participant or investor: (i) May claim a loan origination or loan purchase if another participant or investor claims the same loan origination or purchase; or (ii) May claim loans accounting for more than its percentage share (based on the level of its participation or investment) of the total loans originated by the consortium or third party. (e) Lending performance rating. The appropriate Federal banking agency rates a bank's or savings association's lending performance as provided in appendix A of this part. § 25.23 Investment test. (a) Scope of test. The investment test evaluates a bank's or savings association's record of helping to meet the credit needs of its assessment area(s) through qualified investments that benefit its assessment area(s) or a broader statewide or regional area that includes the bank's or savings association's assessment area(s). (b) Exclusion. Activities considered under the lending or service tests may not be considered under the investment test. (c) Affiliate investment. At a bank's or savings association's option, the appropriate Federal banking agency will consider, in its assessment of a bank's or savings association's investment performance, a qualified investment ma [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2025-13559. Public record. Not legal advice.