The Community Reinvestment Act (CRA) was passed in 1977 should be familiar to you if you’re a US banker. However with the advent of modern banking technologies and seeing less consumer dependence on physical bank branches, it’s becoming quite clear that the CRA needs to see an update in order to continue to best serve the community. Comptroller Joseph Otting indicated in April 2018 that he intends to work with both the Fed and the FDIC to enact a number of changes to the CRA.
Below are some of the important proposed changes to the CRA:
- Developing an objective, quantitative measure of bank compliance.
- Expanding the types of loans available under CRA to include student and small business loans.
- Simplifying the CRA grading process between evaluations.
- Giving banks more flexibility in anti-money-laundering law compliance.
The Epic River Patient Lending solution gives banks a fresh new source of interest revenue while still serving underserved populations for CRA credit. If you’re curious about what the upcoming CRA changes could mean for your bank, fill out the form below! We’ll continue to provide important changes in the banking landscape as well as provide you with case studies and ideas that will benefit your bottom (and top) line.