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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Wolters Kluwer Expert Cites Preparation as Key to Compliance for Modernized Community Reinvestment Act

Interagency finalization of revamped CRA sets the table for noteworthy changes

The recent finalization of an updated Community Reinvestment Act (CRA) reflects longstanding efforts to address an evolution in banking practices since the Act’s inception in 1977, including the introduction of new product delivery technologies and customer behaviors. But with input incorporated into the regulations from a range of stakeholders including federal agencies, industry and community leaders, complying with the new CRA requirements will require significant adaptation, according to expert commentary by Wolters Kluwer Compliance Solutions.

“Every bank is going to be touched by this in some way, no matter the size of the bank. This changes the status quo for everybody,” said Timothy Burniston, Senior Advisor, Regulatory Strategy at Wolters Kluwer Compliance Solutions.

Burniston’s insights on finalization of a modernized CRA, were featured in a National Mortgage Professional magazine article, “Federal Reserve Approves Major CRA Overhaul After Nearly Three Decades” on the same day interagency finalization was achieved. The regulation is being published in the Federal Register and takes effect April 1, 2024, with key provisions becoming applicable on January 1, 2024.

Burniston recommends that in addition to carefully reading the final rule and supplementary information, banks first consider how they may be affected by changes to assessment areas and CRA-eligible activities.

“Understanding geographically where you’re going to be evaluated and determining if there are areas where you are not currently being evaluated but will be in the future, is an essential first step in trying to understand how this rule will impact your bank most,” he notes.

Among the significant changes reflected in the final rule—compared to the proposed rule—is the extension of the implementation period from one year to two years. Burniston says that it will be important for regulators to keep the CRA regulations responsive to short- and long-term disruptions and current with continuing changes within the banking industry as the implementation process moves forward. The final rule also makes adjustments to other substantive provisions such as retail lending assessment areas, retail lending performance ranges, major product lines, and how automobile lending will be considered in performance evaluations.

National Mortgage Professional is published by American Business Media. It reaches 58,000 readers and is dedicated to helping professionals progress their understanding of the residential mortgage banking business – particularly in the areas of strategy, operations and compliance.

Wolters Kluwer Compliance Solutions is a market leader and trusted provider of risk management and regulatory compliance solutions and services to U.S. banks, credit unions, insurers and securities firms. The business, which sits within Wolters Kluwer’s Financial & Corporate Compliance (FCC) division, helps these financial institutions efficiently manage risk and regulatory compliance obligations, and gain the insights needed to focus on better serving their customers and growing their business. Wolters Kluwer FCC is also home to CT Corporation, a leading provider of registered agent services, incorporation services and legal entity compliance, including the new beneficial ownership requirement for small businesses effective January 1, 2024.

About Wolters Kluwer

Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software, and services for professionals in healthcare, tax and accounting, financial and corporate compliance, legal and regulatory, and corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.

Wolters Kluwer reported 2022 annual revenues of €5.5 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 20,900 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

For more information, visit www.wolterskluwer.com, follow us on LinkedIn, X, Facebook, and YouTube.

Contacts

Media Contact

David Feider

Associate Director, External Communications

Financial & Corporate Compliance

Wolters Kluwer

Office +1 612-246-9454

david.feider@wolterskluwer.com

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