Tag

Community Reinvestment Act

All articles tagged with #community reinvestment act

legalfinancial1 year ago•2 min saved

"Texas Judge Halts Revised Fair Lending Regulations"

A federal judge in Texas has blocked the enforcement of new regulations aimed at overhauling how lenders extend loans and services to low- and moderate-income Americans, finding that the rules violated the Community Reinvestment Act of 1977. The judge's preliminary injunction, issued in response to a lawsuit by banking and business groups, prevents the rules from taking effect. The updated regulations, issued by the Federal Reserve, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency, sought to broaden the geographies in which lenders are required to extend services, but the judge ruled that they exceeded the authority granted by the 1977 law.

via Reuters|

#banking-regulations #community-reinvestment-act #fair-lending-rules

finance2 years ago•9 min saved

"Vice Chair for Supervision Barr's Testimony: Insights on Supervision and Regulation"

Vice Chair for Supervision Barr testified before the Committee on Financial Services, U.S. House of Representatives, discussing the soundness and resilience of the banking system, current conditions in the banking sector, supervision, and recent regulatory proposals. Barr highlighted that the banking system is sound and resilient, with capital and liquidity ratios above regulatory levels. He also addressed the failures of certain banks due to excessive interest rate risk and over-reliance on uninsured deposits. Barr emphasized the need for improved supervision, particularly as banks grow in size and complexity, and highlighted the importance of addressing material risks and vulnerabilities. He discussed the proposed reforms to the capital requirement framework, which aim to increase the quantity and quality of capital and reduce the likelihood of future financial crises. Barr also mentioned the proposed extension of long-term debt requirements and the finalization of a rule strengthening and modernizing the Community Reinvestment Act regulations.

via Federal Reserve|

#banking-conditions #capital #community-reinvestment-act

finance2 years ago•2 min saved

"US Banks Brace for Stricter Fair Lending Regulations"

US regulators are set to finalize new rules that will grade banks on their fair lending practices, specifically focusing on the communities and geographies they serve through online lending. The changes to the Community Reinvestment Act (CRA) regulations aim to broaden the areas in which lenders must extend loans and services to low-income Americans, making it more challenging for banks to receive top marks for CRA compliance. The updated rules also seek to provide a more consistent process for grading banks' performance. While some industry commenters have called for revisions, banks have expressed concerns about compliance burdens and have urged regulators to extend the implementation time frame.

via Reuters.com|

#community-reinvestment-act #fair-lending #finance

finance2 years ago•3 min saved

"New Anti-Discrimination Rule Puts Banks to the Test"

Bank regulators have introduced a new rule to combat lending discrimination, requiring banks to increase lending to low- and moderate-income communities. The rule, which marks the most significant revision to the Community Reinvestment Act in nearly three decades, has drawn criticism from lenders and a Federal Reserve Board member. The new framework, effective from January 2026, assesses banks' retail lending and community development financing using benchmarks based on peer and demographic data. Banks oppose the new loan-threshold test, arguing it could lead to closures or restrictions in sparsely populated areas. Fed Chair Jerome Powell defended the rule, stating it will expand access to credit and banking services in low- and moderate-income communities.

via POLITICO|

#anti-discrimination #banks #community-reinvestment-act