Community Reinvestment Act
Request for Comment on Proposed Revisions to CRA Regulations
FIL-35-2009 June 24, 2009
The FDIC, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision (the agencies) are publishing the attached proposed revisions to the Community Reinvestment Act (CRA) regulations. The proposed revisions would require the agencies, when assessing a financial institution's record of meeting community credit needs, to consider low-cost education loans to low-income borrowers and various activities undertaken by nonminority-owned and nonwomen-owned financial institutions in cooperation with minority- and women-owned financial institutions and low-income credit unions. Comments on the proposed revisions are due 30 days following publication of the joint notice of proposed rulemaking in the Federal Register.
The federal banking and thrift agencies are proposing to amend the CRA regulations to address the recent statutory amendment made to the CRA by the Higher Education Opportunity Act, which requires the agencies to consider low-cost education loans to low-income borrowers when assessing a financial institution's record of meeting community credit needs.
The proposal also would incorporate into the CRA rules statutory language that allows the agencies, when assessing an institution's record, to consider, as a factor, joint ventures undertaken by nonminority-owned and nonwomen-owned financial institutions in cooperation with minority- and women-owned financial institutions and low-income credit unions.
The agencies are seeking comment on all aspects of the proposal. For example, the proposal seeks comment on the following questions:
Should the definition of "education loans" include private loans not governmentally insured or guaranteed?
Should "low income" be defined differently from the way it is currently defined in the regulations, and in determining income level, how should the agencies treat the student's family income or expected contribution?
FDIC-Supervised Banks (Commercial and Savings)