Letter to the Agencies on the Proposal to Rescind the 2025 CRA Rule and Reinstate the 1995 CRA Framework

To Whom It May Concern:

The American Bankers Association (ABA) appreciates the opportunity to comment on the agencies' notice of proposed rulemaking (NPR) to rescind the 2023 Community Reinvestment Act Rule (2023 Rule) and reinstate the 1995 CRA framework. We support the proposal.

ABA has advocated for updating the CRA regulatory framework since Treasury commenced its review of CRA regulation and supervision in June 2017. Our goal has been to ensure that expectations are transparent and that examiners interpret and apply the rules consistently—allowing banks to concentrate on serving underserved consumers and communities rather than expending resources to clarify CRA eligibility or respond to shifting examiner interpretations. We have repeatedly called on regulators to refine the examination process, increase transparency in ratings methodologies, and ensure that the rule and associated guidance are applied consistently.

And, while we agreed with the agencies that changes in technology and consumer behavior warranted reevaluating the effectiveness of the assessment area concept, any regulatory changes must be consistent with the CRA statute—a standard that the 2023 Rule's assessment area framework did not meet. As articulated in our litigation, the 2023 Rule exceeds the CRA statute and violates the Administrative Procedure Act (APA), justifying recission of the 2023 Rule. In addition, the rule’s complexity was a pronounced departure from the original goal of CRA modernization, which was to clarify—not complicate or overhaul—the CRA regulatory framework.

For these reasons, we support the agencies’ proposal to replace the 2023 Rule with the 1995 CRA regulatory framework. The legacy rule is not perfect, but it is more closely aligned with Congressional intent and is more workable than the 2023 Rule.

Download the comment letter to read the full text.