Rep. Meeks and Colleagues Urge Federal Banking Agencies to Reform Community Reinvestment Act Guidance

Press Release

This week, senior Member of the House Financial Services Committee, Congressman Gregory W. Meeks (NY-05), led nearly 60 Democratic Members of the Congressional Black Caucus and the House Financial Services Committee on a letter (below) that urged the federal banking agencies to update their Community Reinvestment Act (CRA) guidance to comport with changes in the financial services industry.

The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (the "federal banking agencies") are currently undergoing a review pursuant to the Economic Growth and Regulatory Paperwork Reduction Act ("EGRPRA") to identify outdated rules and regulations. Mr. Meeks' letter recommends modernizing the current CRA regulatory framework, to increase access to credit in low- and moderate-income communities

"In the more than 40 years since the CRA was enacted, banks have changed significantly their provision of financial services to their customers, especially those in low- and moderate-income communities," Congressman Gregory W. Meeks said. "That is why it is important for regulators to update and reform how the CRA is enforced. In doing so, regulators must ensure that this important law adequately serves low- and moderate-income communities, providing them with access to capital."

The letter follows a June meeting Rep. Meeks had with U.S. Comptroller of the Currency Thomas J. Curry. Rep. Meeks and the Comptroller toured downtown Jamaica, Queens and observed ongoing CRA-related investment projects. They also spoke to community bankers. During the tour, both Rep. Meeks and the Comptroller broadly agreed that there have been significant changes in the banking sector since the CRA was enacted and that its framework needs to be modernized.

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