Subject Matter

Department of the Treasury, Office of the Comptroller of the Currency: Community Reinvestment Act Regulations

B-333856

December 22, 2021

The Honorable Sherrod Brown
Chairman
The Honorable Patrick J. Toomey
Ranking Member
Committee on Banking, Housing, and City Affairs
United States Senate

The Honorable Maxine Waters
Chairwoman
The Honorable Patrick McHenry
Ranking Member
Committee on Money Expert services
Property of Representatives

Topic:  Division of the Treasury, Business office of the Comptroller of the Currency: Community Reinvestment Act Laws

Pursuant to part 801(a)(2)(A) of title 5, United States Code, this is our report on a key rule promulgated by the Department of the Treasury, Business office of the Comptroller of the Forex (OCC) entitled “Community Reinvestment Act Regulations” (RIN:  1557-AF12).  We acquired the rule on December 15, 2021.  It was revealed in the Federal Register as a final rule on December 15, 2021.  86 Fed. Reg. 71328.  The productive date is January 1, 2022.

According to OCC, the last rule adopts a final Community Reinvestment Act rule that is centered largely on the 1995 Community Reinvestment Act policies, as revised, that were issued by OCC, Board of Governors of the Federal Reserve Procedure (Board), and Federal Deposit Insurance Company (FDIC).  OCC said the closing rule applies to nationwide banking institutions and personal savings associations.  OCC further mentioned the closing rule rescinds a prior rule released by OCC on June 5, 2020, and facilitates the OCC’s planned long run issuance of up-to-date interagency policies with the Board and FDIC.

The Congressional Critique Act (CRA) requires a 60-working day delay in the helpful day of a key rule from the day of publication in the Federal Sign-up or receipt of the rule by Congress, whichever is later.  5 U.S.C. § 801(a)(3)(A).  The 60-day delay in effective date can be waived, nonetheless, if the company finds for excellent lead to that hold off is impracticable, pointless, or opposite to the general public interest, and the agency incorporates a assertion of the conclusions and its explanations in the rule issued.  5 U.S.C. §§ 553(d)(3), 808(2).  Right here, though OCC did not exclusively mention the CRA’s 60-day hold off in effective day necessity, the company identified superior result in to waive the Administrative Process Act’s 30-day delay and integrated a transient statement of reasons.  Particularly, OCC said a delay would trigger a lender to be topic to two different regulatory regimes through any a few-year evaluation period that incorporates 2022 facts gathered on a calendar-year foundation is extra helpful to stakeholders than info gathered for a partial 12 months and financial institutions at this time are needed to comply with lots of of the provisions in the 1995 procedures, which this final rule reinstates.  OCC also waived see and remark strategies for some of the provisions for good result in due to the fact it explained these amendments are not substantive and just suitable cross-references and a reference to the OCC.

Enclosed is our evaluation of OCC’s compliance with the procedural actions necessary by portion 801(a)(1)(B)(i) as a result of (iv) of title 5 with regard to the rule.  If you have any thoughts about this report or desire to make contact with GAO officers accountable for the evaluation do the job relating to the topic matter of the rule, be sure to get in touch with Shari Brewster, Assistant Common Counsel, at (202) 512-6398.


Shirley A. Jones
Running Associate Standard Counsel

Enclosure

cc:  Shaquita Merritt
  Plan Expert, Main Counsel’s Office

ENCLOSURE

REPORT Less than 5 U.S.C. § 801(a)(2)(A) ON A Big RULE
ISSUED BY THE
Office OF THE TREASURY,
Office environment OF THE COMPTROLLER OF THE Forex
ENTITLED
“COMMUNITY REINVESTMENT ACT REGULATIONS”
(RIN:  1557-AF12)

(i) Cost-reward examination

The Section of the Treasury, Place of work of the Comptroller of the Forex (OCC) did not focus on the charges and positive aspects of the ultimate rule.  In its submission to us, OCC indicated that it did not prepare an evaluation of the expenses and benefits of this final rule.

(ii) Agency steps suitable to the Regulatory Overall flexibility Act (RFA), 5 U.S.C. §§ 603–605, 607, and 609

OCC certified the last rule would not have a sizeable financial influence on a substantial quantity of compact entities.

(iii) Company actions appropriate to sections 202–205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. §§ 1532–1535

OCC concluded the remaining rule will not final result in an expenditure of $100 million or additional every year (modified for inflation) by point out, nearby, and tribal governments, or by the non-public sector.

(iv) Other relevant information and facts or requirements underneath acts and govt orders

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

On September 8, 2021, OCC issued a proposed rule, which was revealed on September 17, 2021.  86 Fed. Reg. 52026.  OCC acquired 62 remarks on the proposed rule from the banking market, neighborhood and other advocacy groups, point out and neighborhood governments, and the common public.  OCC responded to the remarks in the ultimate rule.  OCC waived the Act’s hold off in helpful day prerequisite for superior result in.  It determined it had superior cause because a delay would bring about a bank to be subject matter to two distinct regulatory regimes through any three-yr assessment interval that involves 2022 knowledge collected on a calendar-year foundation is a lot more useful to stakeholders than information collected for a partial yr and banking companies at this time are necessary to comply with many of the provisions in the 1995 regulations, which this ultimate rule reinstates.  OCC also waived notice and comment methods for some of the provisions for good result in for the reason that these amendments are not substantive and simply suitable cross-references and a reference to the OCC.

Paperwork Reduction Act (PRA), 44 U.S.C. §§ 3501–3520

OCC determined the closing rule contained facts assortment demands (ICRs) matter to the Act.  The ICR is entitled “Community Reinvestment Act” and is involved with Office environment of Administration and Finances Control Variety 1557-0160.  OCC approximated the once-a-year burden of the ICR to be 113,351 hrs.

Statutory authorization for the rule

OCC promulgated the remaining rule pursuant to sections 21, 22, 26, 27, 30, 36, 93a, 161, 215, 215a, 481, 1462a, 1463, 1464, 1814, 1816, 1828(c), 1835a, 2901 via 2908, 3101 by means of 3111, and 5412 of title 12, United States Code.

Government Buy No. 12866 (Regulatory Setting up and Evaluate)

As an impartial regulatory company, OCC is not subject to the prerequisites of the Get.

Government Get No. 13132 (Federalism)

As an unbiased regulatory company, OCC is not topic to the requirements of the Purchase.

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