The Future of CRA: What CDFIs Need to Know About the Latest Regulatory Shift
Dafina Williams, Executive Vice President, Chief Public Policy Officer and Head of Government Affairs
Federal agencies have plans to rescind the Community Reinvestment Act final rule, a move that could impact how CDFIs drive investment in their communities.
Read time: 2 minutes
On March 28, the federal bank regulatory agencies—Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC)—announced plans to rescind the Community Reinvestment Act (CRA) final rule issued in October 2023.
The 2023 CRA rule was the first major update to the regulations in more than three decades, aiming to modernize how banks meet their community reinvestment obligations. It introduced revised assessment areas, expanded data reporting, and clearer performance metrics. However, in February 2024, several banking associations—including the Independent Community Bankers of America, American Bankers Association, Texas Bankers Association, and Independent Bankers Association of Texas—filed a lawsuit challenging the rule, halting its implementation.
For more than a year, the rule remained in legal limbo. Now, regulators have moved to formally withdraw it, a process that could take several months and will include a public comment period. While the agencies emphasize their commitment to a consistent regulatory approach, this move signals renewed debate on revisions to the CRA framework.
The rollback of the 2023 rule is a significant regulatory shift, raising key questions for CDFIs and other stakeholders that depend on the CRA to drive investment into underserved communities. For CDFIs, the CRA is a critical tool that encourages banks to partner with mission-driven lenders supporting low-income and underinvested areas.
As this situation evolves, the CDFI industry must remain engaged in advocacy efforts to ensure that future CRA reforms continue to prioritize investments in communities that need them most. OFN will continue to provide updates and analysis—stay informed, stay engaged, and let’s work together to uphold the CRA’s role in financing community development.
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