On May 5, 2022, the agencies issued a joint Notice of Proposed Rulemaking (NPR) on the Community Reinvestment Act (CRA), designed to strengthen and modernize the rule that implements the CRA. The comment period closed on August 5, 2022; the last significant interagency revision to the CRA regulations occurred in 1995. The proposed rule brings about significant changes to the way CRA performance would be evaluated in the future. For example, large banks (i.e., those with assets greater than $2 billion) would need to create retail lending assessment areas (RLAAs) beyond facility-based assessment areas (FBAAs), where the bank has originated at least 100 home mortgage loans or 250 small business loans in any MSA or the combined non-MSAs in a state for two consecutive years. This could significantly increase the number of assessment areas in which a large bank’s performance will be evaluated. Read Capco's white paper to learn more as we await the final CRA Rule.