Agencies postpone applicability dates on some parts of CRA update rule

Just eleven days before the effective date of most provisions of their revised Community Reinvestment Act regulations issued in October 2023 (published on February 1, 2024), the Federal Reserve Board, OCC, and FDIC have jointly announced a supplemental interim final rule that extends the applicability date of certain provisions.

To promote clarity and consistency, the agencies extended the applicability date of the facility-based assessment areas and public file provisions from April 1, 2024, to January 1, 2026. Therefore, banks will not have to make changes to their assessment areas or their public files as a result of the 2023 CRA final rule until January 1, 2026. This extension aligns these provisions with other substantive parts of the 2023 CRA final rule that are applicable on January 1, 2026. For example, all provisions about where banks are evaluated will now apply on the same date. Comments on the extended applicability date must be received 45 days after the rule is published in the Federal Register.

The supplemental interim final rule, which becomes effective on April 1, 2024, also includes technical, non-substantive amendments to the CRA final rule and related agency regulations that reference it. For example, one of these technical amendments clarifies that banks do not need to make changes to their public notices until January 1, 2026.

Federal Reserve Board Governor Michelle W. Bowman, who has criticized the October 2023 rule as "unnecessarily complex and extraordinarily lengthy," issued a statement of concern that the change announced yesterday "will not be the only significant issue that will require further consideration given the length and complexity of the final rule as the agencies continue to work toward implementation of the changes. ... This interim final rule illustrates the rushed, overly complex, and unwieldy nature of the CRA rulemaking."

• FDIC FIL-12-2024
• Published at 89 FR 22230

on 3/29/2024. The supplemental interim final rule will be effective 4/1/2024. Comments will be accepted through May 13, 2024.