WASHINGTON — Regulators on Friday issued a package of long-awaited modifications to Community Reinvestment Act guidance designed to address the changing nature of banking products.
Published in the form of a Q&A, the updated guidance was first proposed by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the Federal Reserve in September 2014.
The finalized guidance will be effective "shortly," regulators said. It includes a raft of clarifications on branchless banking, flexible products such as small-dollar loan programs and how community development activities are recognized.
Out of 10 initial questions and answers proposed by the regulators, only one, addressing the "availability and effectiveness of retail banking services," was dropped.
The other nine rubrics were revised based on suggestions from industry representatives, state regulators and other players. The regulators received 126 comment letters, in addition to hundreds of form-letter submissions.