Fed, OCC, FDIC seek to withdraw overhauls to anti-redlining rules
Three federal bank regulators plan to rescind the 2023 Community Reinvestment Act (CRA) final rule due to pending litigation. The Federal Reserve, OCC, and FDIC will revert to the previous CRA framework.
The 2023 rule, the first major CRA update in nearly three decades, aimed to modernize regulations but faced legal challenges and was blocked by a Texas judge. Regulators had already postponed implementation to 2026.
Michael Barr, who was the Fed’s vice chair for supervision at the time the rule was finalized, called the final rule a “win-win for all” when it was announced. “Fair lending is safe and sound lending, and the CRA regulations we promulgate today will help make the financial system safer and fairer,” he said at the time.
