Brooks: CRA Benchmarking Proposal Expected by End of Summer
July 31, 2020
The OCC expects to propose the benchmarking framework it will use to assess Community Reinvestment Act performance within the next four to six weeks, Acting Comptroller of the Currency Brian Brooks said in keynote remarks at ABA’s Risk and Compliance Virtual Conference yesterday.
When the OCC issued its final CRA rule in May, the agency said it would propose objective thresholds and benchmarks in the future.
The goal of performance assessments under the OCC’s new CRA rules is to “move away from a world where banks’ performance scores are relativistic.” Instead, Brooks said, the agency aims to set objective benchmarks against which individual banks may be assessed.
Brooks added that the industry will have a “long runway” to adjust to the new benchmarks. “We will not be looking at CRA performance [under the new benchmarks] for large banks until 2023 and for smaller banks until 2024,” he said.
In a wide-ranging conversation with ABA President and CEO Rob Nichols, Brooks also discussed his plans for an OCC payments charter, the valid-when-made rule, new credit score models, third-party risk management, core processors and other topics. Watch the conversation.