FDIC Approves Notice of Proposed Rulemaking to Rescind the 2023 Community Reinvestment Act Final Rule
FederalAgency guidance
Ask Donna
How this section applies to your facts.
FDIC Financial Institution Letters › FDIC Approves Notice of Proposed Rulemaking to Rescind the 2023 Community Reinvestment Act Final Rule
Text
34086
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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
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
iness 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
, 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
bject 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00002
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34087
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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).
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).
10 12 U.S.C. 2903(a)(1).
11 12 U.S.C. 2906(a).
12 12 U.S.C. 2903(a)(2).
13 12 U.S.C. 2905
28.11).
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).
10 12 U.S.C. 2903(a)(1).
11 12 U.S.C. 2906(a).
12 12 U.S.C. 2903(a)(2).
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).
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
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
atience
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.
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
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
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
The Agencies’ Regulatory Framework
The CRA directs the agencies to
publish regulations to carry
itution’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
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00003
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34088
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
18 87 FR 33884 (June 3, 2022).
19 For a complete overview of the 2023 CRA Final
Rule, see the SUPPLEMENTARY INFORMATION section of
the rule, 89 FR at 6574–6579.
20 See supra note 2.
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
x. 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).
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
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
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
the
overall regulatory framework.16 The
OCC issued a separate CRA final rule in
May 2020, but rescinded it in December
2021.17
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.
Under the 2023 CRA Final Rule, as
fully implemented: 19
• 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
asis) 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
t 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:
Æ 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;
Æ 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
Æ 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
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.
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
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00004
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
at 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00004
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34089
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
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.
29 See supra note 17.
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.
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.
III
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.
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.
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.
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
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
ch 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.
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
n
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.
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
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-
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00005
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34090
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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).
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
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
native 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
sible 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
23 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.
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
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
ies, 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34091
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
32 See proposed 12 CFR __.21(b).
33 See proposed 12 CFR __.21(d).
34 See proposed 12 CFR __.28(a) and (b).
35 See proposed 12 CFR __.28(c).
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.
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).
43 See proposed 12 CFR __.12(g), (h), (i), and (t);
see also proposed 12 CFR __.21 through __.27.
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).
45 See proposed 12 CFR __.42.
46 See proposed 12 CFR __.43.
47 See proposed 12 CFR __.44.
48 12 U.S.C. 2903(b) and (d).
49 See proposed 12 CFR __.21(e) and (f).
50 See proposed 12 CFR __.45.
51 See proposed 12 CFR __.51.
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
45 See proposed 12 CFR __.42.
46 See proposed 12 CFR __.43.
47 See proposed 12 CFR __.44.
48 12 U.S.C. 2903(b) and (d).
49 See proposed 12 CFR __.21(e) and (f).
50 See proposed 12 CFR __.45.
51 See proposed 12 CFR __.51.
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
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
Assessment Areas
The proposal would require a bank to
delineate one or more assessment areas
in which
ssign
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
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
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
h as consumer loans, on which the
bank elects to have its performance
assessed).40
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
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
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.
• 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
d 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.
• 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.
• 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.
• 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
• 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
• The agencies would be required to
publish a schedule of planned CRA
examinations.50
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
nk’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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00007
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34092
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
52 See supra note 3.
53 See 12 CFR 208.7 (Board); 12 CFR part 369
(FDIC).
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).
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.
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.
58 Based on data accessed using the OCC’s
Financial Institutions Data Retrieval System on May
8, 2025
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.
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 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
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
V
posit 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
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.
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
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
VI. Request for Comments
The agencies request feedback on all
aspects of the proposed rule.57
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
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
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
e 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00008
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34093
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
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)
olidated Reports of Condition and Income) for
2024.
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.
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
alter
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
d’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
nks (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
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
luations. 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00009
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
lude 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00009
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34094
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
65 FDIC Call Report Data, December 31, 2024.
66 2 U.S.C. 1531 et seq.
67 2 U.S.C. 1532.
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.
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.
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
ir CRA examination
framework. Therefore, the FDIC certifies
that the proposed rule will not have a
significant impact on a substantial
number of small entities.
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.
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
on 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
urposes 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
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00010
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34095
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
68 Proposed 12 CFR __.25(a).
69 Proposed 12 CFR __.25(b).
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).
82 Proposed 12 CFR __.42(b).
83 Proposed 12 CFR __.42(b)(1).
84 Proposed 12 CFR __.42(b)(2)
2 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).
82 Proposed 12 CFR __.42(b).
83 Proposed 12 CFR __.42(b)(1).
84 Proposed 12 CFR __.42(b)(2).
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])).
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
§ __.27—Strategic plan
se 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
§ __.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
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
r
nd 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
§ __.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
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
Community development loan data.
The aggregate number and aggregate
amount of community development
loans originated or purchased in the
preceding calendar year.84
Home mortgage loans
n 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
Community development loan data.
The aggregate number and aggregate
amount of community development
loans originated or purchased in the
preceding calendar year.84
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
§ __.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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00011
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
e 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00011
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34096
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
87 Proposed 12 CFR __.42(d).
88 Proposed 12 CFR __.42(e).
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).
95 Proposed 12 CFR __.42(a).
96 Proposed 12 CFR __.42(c)(1).
97 Id.
98 Id.
99 Id.
100 Proposed 12 CFR __.42(c)(2).
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).
identify the home mortgage loans
reported under Regulation C by the
affiliate.87
§ __.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
§ __.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
lecting
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
assessme
unties,
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
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
§ __.42(c)(1)—Optional data
collection and maintenance—Consumer
loans
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
§ __.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:
• 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
§ __.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
Disclosure Requirements
§ __.43—Content and availability of
public file
• the gross annual income of the
borrower that the bank considered in
making its credit decision.99
§ __.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
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 includ
nces 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
A bank, except a small bank or bank
that was a small bank during the prior
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00012
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34097
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
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).
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).
120 Proposed 12 CFR __.44.
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
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
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
he 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
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
§ __.44—Public notice by banks
eptable 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
§ __.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
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 ..........................
..
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00013
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34098
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
BURDEN ESTIMATES—Continued
Source and type of
burden
Description
Estimated
number of
respondents
Frequency of
response
Average
estimated
time per
response
Total
estimated
annual burden
Optional Reporting
§ __.25(b) ....................
Request for designation as a whole-
sale bank or a limited purpose
bank.
OCC ....................................................
19 .........................
1 ...........................
4 ...........................
76
Board .................................................
age
estimated
time per
response
Total
estimated
annual burden
Optional Reporting
§ __.25(b) ....................
Request for designation as a whole-
sale 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 ........................
...............
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 serv-
ice 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 ..........................
......................
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 ..................................................
.............................
...........................
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00014
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
orms 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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00014
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34099
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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
n
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
ping
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
ns.
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00015
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34100
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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).
2025
Jkt 265001
PO 00000
Frm 00015
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34100
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
t 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
ederal 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.
s 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.
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:
e 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).
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00016
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34101
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
(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).
OPOSALS2
34101
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
(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.
es 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).
ly 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.
ined 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.
er, 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
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
VerDate Sep<11>2014
18:32 Jul 17, 2025
Jkt 265001
PO 00000
Frm 00017
Fmt 4701
Sfmt 4702
E:\FR\FM\18JYP2.SGM
18JYP2
khammond on DSK9W7S144PROD with PROPOSALS2
34102
Federal Register / Vol. 90, No. 136 / Friday, July 18, 2025 / Proposed Rules
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.
/ Friday, July 18, 2025 / Proposed Rules
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;
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
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).
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 acti
This text is long and has been trimmed here. Open the source document for the complete record.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.