The OCC and FDIC have released their long-awaited joint proposal to revise and update the Community Reinvestment Act regulatory framework. In this bonus episode of the ABA Banking Journal Podcast, sponsored by OneTrust Vendorpedia, senior OCC policy official Grovetta Gardineer digs into the details of the notice of proposed rulemaking. She discusses:

• The anticipated list of pre-approved activities eligible for CRA credit and how it will be updated.
• How the proposal addresses concerns about CRA activities in gentrifying neighborhoods.
• The proposal’s new concept of assessment areas based on where banks have a significant share of deposits and retail lending — beyond their facility-based assessment areas.
• The proposal’s new approach to CRA evaluation, which includes a set of performance standards against benchmarks and set in a bank’s local performance context.
• Implications of the proposed changes for banks’ reporting and data systems and the agencies’ discussions with core providers and other vendors to support the changes.
• How the opt-out for banks with less than $500 million in assets would work — and what new data smaller banks would still have to collect even if they opt out.

Comments on the proposal will be due 60 days after it is published in the Federal Register. ABA encourages all banks to comment; ABA members can register for a free webinar on Dec. 19 providing more details on the proposed rule and tips for writing a comment letter.