American Banker, January 6, 2020: Regulators’ Powerful Incentive to Fast-track CRA Reform
While community and industry groups are pressing regulators to extend the public comment period for proposed changes to the Community Reinvestment Act, the agencies have a powerful incentive to move quickly — a potential Democratic sweep of the 2020 elections that could enable Congress to scrap the plan before it is ever enacted.
Many community groups are already mobilizing against the proposal, which they say would undermine the intent of the law meant to help ensure banks provide loans and services to disadvantaged consumers in areas in which they operate.
“As written, this proposal is bad enough to warrant overturning in whatever way possible,” said Jesse Van Tol, CEO of the National Community Reinvestment Coalition. “If the Democrats win big in 2020,” such a move “will be relatively high on the regulatory agenda if the proposed changes are finalized.”
