Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) joined all Senate Banking Committee Democrats in a letter demanding that Joseph Otting, head of the Office of the Comptroller of the Currency (OCC), testify before the Senate Banking Committee following the release last week of a proposed rule revising the Community Reinvestment Act (CRA). Comptroller Otting has proposed changing CRA provisions that require banks to provide loans, services, and investments in communities where they operate, a move that could disproportionately hurt Nevada’s rural, low-income and minority communities.
“Revisions to the regulation for this foundational Civil Rights law will have a significant impact on low-income communities, communities of color, rural areas, affordable housing development, community development, and other underserved communities and activities across the banking system,” wrote the senators. “We respectfully request your timely appearance before the Committee to discuss this important proposal and its impact in detail.”
Comptroller Otting did not testify at a December 5, 2019 hearing in which the Committee heard from the other three federal regulators of depository institutions. A hearing with Comptroller Otting would also provide Committee members an opportunity to ask about other prudential matters the Committee discussed with his fellow regulators at that hearing.
Full text of the letter can be found here and below:
Dear Comptroller Otting:
We are writing to request that you testify at a hearing of the Senate Committee on Banking, Housing, and Urban Affairs before February 14, 2020.
The Committee held a hearing titled “Oversight of Financial Regulators” on December 5, 2019. Representatives from the three other federal regulators of depository institutions – the Federal Reserve, the Federal Deposit Insurance Corporation, and the National Credit Union Administration – provided testimony to the Committee on prudential regulation of banks and credit unions. We were disappointed that you were unable to attend and provide testimony with your fellow regulators during this hearing.
The Office of the Comptroller of the Currency (OCC) supervises more than 1,200 banks with more than $12.8 trillion in assets, or more than two-thirds of U.S. commercial banking assets. The OCC is also undertaking critical rulemakings that have the potential to transform our financial system. This includes your recent proposal to overhaul the Community Reinvestment Act (CRA). Revisions to the regulation for this foundational Civil Rights law will have a significant impact on low-income communities, communities of color, rural areas, affordable housing development, community development, and other underserved communities and activities across the banking system.
We respectfully request your timely appearance before the Committee to discuss this important proposal and its impact in detail. Your appearance will also provide members of the Committee an opportunity to discuss prudential matters, which we previously addressed with your colleagues during the December 5, 2019, hearing. We look forward to your prompt response.