The federal bank regulatory agencies announced their intent to rescind the 2023 Community Reinvestment Act (CRA) final rule and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies cited “pending litigation” as the basis for their decision.
The District Court for the Northern District of Texas issued a preliminary injunction in April 2024, stalling implementation of the final rule. The court signaled its agreement with various arguments presented by financial trade organizations other business entities in the case of Texas Bankers Association, et al. v. Office of the Comptroller, et al.
The agencies said they intend to continue to work together to promote a consistent regulatory approach on their implementation of the CRA.
Follow Dodd Frank Update for more details about this matter as they become available. Also see our in-depth report on the modernized CRA requirements included in the final rule for perspective on what its rescission will mean, as well as recommendations for how institutions can best tell their CRA story.