The federal bank regulatory agencies have announced their intention to propose the rescission of the Community Reinvestment Act (CRA) final rule issued in October 2023. This decision comes in response to ongoing litigation concerning the rule. In its place, the agencies plan to reinstate the CRA framework that existed prior to the October 2023 modifications.

"The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA," they stated.

The agencies' decision aims to address disputes regarding the rule and ensure consistent application of the CRA. Further developments will follow as the proposal is formalized and discussions continue.