Opportunity Finance Network warns OCC, FDIC CRA proposal weakens incentives for community investment

Opportunity Finance Network warned that proposed OCC-FDIC changes to the Community Reinvestment Act would weaken incentives for bank community investment.

CEO Harold Pettigrew said the proposal risks reducing private capital for affordable housing, small businesses, small farms, and community development.

OFN flagged concerns over revised bank asset thresholds, narrower community investment definitions, and grant treatment that underweights their role.

OFN plans a formal comment urging a unified interagency CRA framework with the Federal Reserve to improve consistency and certainty.

OFN said the final rule should be judged on whether it strengthens capital flows to underserved communities, calling for major revisions.