Community Reinvestment Act Rule Overhaul Finalized by U.S. Banking Regulators

The Final Rule is the culmination of a rulemaking process that initiated five years ago to modernize the CRA regulations. The result is an incredibly complex regulatory scheme, with the version to be published in the Federal Register coming in at 1,494 pages and 651,627 words, including background and section-by-section analysis—“by far the longest rulemaking the FDIC has ever issued,” according to FDIC Vice Chairman Travis Hill.2 The text of the regulation itself is over 60,000 words.

The Final Rule becomes effective on April 1, 2024, but there is a multiyear phase-in. This article provides background on the rulemaking process and a high-level summary of the Final Rule.