On June 5, 2020, the OCC published a
final rule in the Federal Register that makes comprehensive changes
to the Community Reinvestment Act (CRA) regulatory framework
designed to ensure that the CRA remains a relevant and powerful
tool for encouraging banks to serve the needs of their communities,
particularly low- or moderate-income (LMI) neighborhoods,
consistent with banks’ safe and sound operations. The OCC
modernized and strengthened the CRA regulatory framework to better
achieve the underlying statutory purpose of encouraging banks to
help serve their communities by making the framework more
objective, transparent, consistent, and easy to understand. To
accomplish these goals, the final rule strengthened the CRA
regulations in four key areas by (1) clarifying which activities
qualify for CRA credit; (2) updating where activities count for CRA
credit; (3) creating a more consistent and objective method for
measuring CRA performance; and (4) providing for more timely and
transparent CRA-related data collection, recordkeeping, and
reporting. The final rule provided a new evaluation framework
(i.e., the general performance standards) for banks with assets of
$2.5 billion or more that are not wholesale or limited purpose
banks and do not operate under an approved strategic plan. However,
the final rule did not provide the CRA evaluation measure
benchmarks, retail lending distribution test thresholds, and
community development (CD) minimums under the general performance
standards. In order to calibrate the benchmarks, thresholds, and
minimums, the OCC seeks information to assist in determining
current and historical levels of CRA activity. Specifically, this
information collection seeks bank-specific data and information to
supplement available data. This information collection applies only
to banks with assets of $2.5 billion or more that are subject to
the general performance standards under the CRA final rule. The OCC
seeks information to assist in determining the CRA evaluation
measure benchmarks, retail lending distribution test thresholds,
and CD minimums under the final rule that will correspond to the
presumptive ratings. The OCC analyzed currently available data to
estimate how banks would have performed under the proposed rule’s
framework. The final rule did not finalize the benchmarks,
thresholds, or minimums as proposed. Instead, the OCC planned to
issue a separate notice of proposed rulemaking to determine the
benchmarks, thresholds, and minimums that will correspond to the
presumptive ratings in the final rule. This information collection
seeks bank-specific data and information to supplement the agency’s
analyses and currently available data. Specifically, it requests
four types of bank data or information: (1) retail domestic deposit
and assessment area data; (2) qualifying activities data; (3)
branch information; and (4) retail loan application and origination
data. The data should contain information from January 1, 2017, to
December 31, 2019.
The CRA final rule
issued on June 5, 2020 did not set banks’ performance benchmarks,
thresholds, and minimums that would incentivize banks to conduct
more retail loans and community development loans, investments, and
services because the OCC elected to collect and analyze
bank-specific data and information and additional public comment
through a notice of proposed rulemaking before finalizing the
benchmarks, thresholds, and minimums. The devastating health
effects of COVID-19 and the local measures taken to control its
spread have caused tremendous economic hardship in the United
States at an unprecedented pace. Since February 2020, millions of
jobs have been lost, and the unemployment rate has precipitously
increased. The economic challenges experienced by communities
across the United States, including LMI communities, as a result of
the COVID-19 pandemic make it critical that implementation of the
revised CRA framework, including the establishment of the
benchmarks, thresholds, and minimums, not be delayed so that the
full financial benefits of the new rule can reach these communities
as soon as possible. To gather the necessary data and information
to finalize the CRA regulatory framework, the OCC plans to issue an
Information Collection Survey as expeditiously as possible, given
the severe and ongoing financial effects of COVID-19 on
communities. Implementation of the final CRA rule is essential to
the OCC’s mission that includes providing fair access to financial
services, and the agency notes that combatting the economic
consequences of COVID-19 is an Administration priority. The
timeframes required by the ordinary clearance process is likely to
delay the use of the Information Collection Survey to develop and
finalize the revised CRA regulatory framework and would likely have
a negative impact on the economic recovery of the country from the
pandemic.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
CRA Survey 11-23-20 Supporting Statement.docx
CRA Survey