Community Reinvestment Act

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California Governor Newsom signed a slate of legislation on September 30, 2026, including Assembly Bill 801, the California Fair Lending Examination Act. The Act (or AB 801) establishes a new state fair lending examination regime for California-chartered banks and credit unions, and California Residential Mortgage Lending Act (CRMLA) licensees. The Act requires the California Department of Financial Protection and Innovation (DFPI) to conduct periodic examinations of those mortgage lenders for compliance with applicable federal and state nondiscrimination laws. The Act takes effect on January 1, 2027.

Assemblymember Mia Bonta introduced AB 801. Earlier versions were more like a mini-Community Reinvestment Act, requiring lenders to meet the credit needs of the communities they serve, especially low- and moderate-income areas. Following significant industry pushback, the state legislators narrowed the bill to target fair lending mortgage compliance examinations.

The Act requires the DFPI to examine, at least once every four years, state-chartered banks and credit unions that meet the asset, volume, and other criteria to be a reporting financial institution under the federal Home Mortgage Disclosure Act (HMDA). The affiliates of covered banks and credit unions also are examinable under certain conditions. In addition, all CRMLA licensees (without regard to HMDA thresholds) are subject to the new state fair lending examination cadence.

The examinations will cover federal and California fair lending laws, including the Equal Credit Opportunity Act, the Fair Housing Act, California’s Unruh Civil Rights Act, and the Holden Act, California’s anti-redlining statute. While the DFPI may cooperate with federal and other state agencies and must align its examinations with others, it may conduct its own examinations, particularly in response to complaints or evidence of potential discrimination.

Continue Reading California Enacts its Fair Lending Examination Act

The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have proposed new regulations under the Community Reinvestment Act (“CRA”). Since 2020, the banking agencies have proposed significant overhauls to the CRA regulations, but with little agreement on the actual changes. Comments on the latest attempt are due by October 13…

In January 2026, the New York State Department of Financial Services (“DFS”) adopted its regulations (the “Regulations”) implementing the provisions of the state’s Community Reinvestment Act covering non-bank, independent mortgage bankers, also known as independent mortgage bankers, licensed under the New York Licensed Mortgage Bankers Law (“Mortgage Bankers”). Because the federal Community Reinvestment Act only applies to insured depository institutions, some states, including Illinois, Massachusetts, and New York, have adopted similar laws and applied those laws to non-depository mortgage companies. The Regulations impose filing, self-testing, and self-assessment requirements on Mortgage Bankers; require DFS to evaluate Mortgage Bankers, including by testing their performance in meeting community credit needs; and implicate applications. The evaluation requirements are similar to those imposed on insured depository institutions under the federal Community Reinvestment Act and its implementing regulations.

While the Regulations became effective the same day of their publication—January 7, 2026—the compliance date is July 7, 2026.

Continue Reading New York State Department of Financial Services Adopts Regulations Implementing the Community Reinvestment Act Covering Mortgage Bankers

On March 29, 2024, the United States District Court for the Northern District of Texas issued a preliminary injunction prohibiting enforcement of the new Community Reinvestment Act (“CRA”) regulations against the plaintiffs in the case.

The CRA, passed in 1977, generally requires insured depository institutions to participate in investment, lending, and service activities that help…

On Monday, New York Governor Kathy Hochul signed legislation to expand the state’s community reinvestment law to cover nonbank mortgage lenders who are licensed in the state of New York. Effective November 2022, the New York Department of Financial Services (“DFS”) will begin considering nonbank lenders’ performance in meeting community credit needs. The new law…