In a recent development, the Office of the Comptroller of the Currency (OCC) has finalized two rules aimed at reducing compliance requirements for community banks. This move is part of the OCC’s strategy to align supervision and regulation more closely with the risk levels of individual banks.
Revoking the Fair Housing Home Loan Data System Regulation
One of the key changes is the revocation of the Fair Housing Home Loan Data System regulation. This regulation previously mandated national banks to collect and report data on home loan applications. However, the OCC has deemed this requirement as outdated and largely “duplicative”. The organization has reassured that this change will not impact the data necessary for its fair housing oversight.
Addressing Regulatory Burdens for Community Banks
The OCC, under the leadership of Currency Comptroller Jonathan V. Gould, has recognized the vital role of community banks in serving crucial constituencies and lending to Main Street businesses. These banks, in turn, help foster vibrant local economies. However, the proliferation of regulatory burdens and a one-size-fits-all supervisory framework have reduced the number of community banks in the United States by half over the last few decades. To address this, the OCC has prioritized streamlining regulation and tailoring supervision to help these institutions best serve the American people on a level playing field.
Streamlining Licensing Procedures
In addition to revoking the Fair Housing Home Loan Data System regulation, the OCC has also finalized a rule to streamline licensing procedures for community banks involved in corporate activities or transactions. The OCC is extending eligibility for faster or reduced filing processes, with the aim of simplifying administrative procedures linked to such activities. These measures, according to the OCC, are intended to reduce administrative demands on community banks while maintaining supervisory standards.
In conclusion, these new rules by the OCC signify a positive step towards reducing the regulatory burden on community banks. By aligning regulations more closely with the risk levels of individual banks and streamlining licensing procedures, the OCC is creating a more conducive environment for community banks to thrive.
Find out more about this development Here.
