In response to the federal banking regulators’ intent to withdraw the 2023 Community Reinvestment Act (CRA) final rule, New Jersey Citizen Action (NJCA) has publicly voiced its opposition. These regulators, including the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC), had announced plans to rescind the rule, originally published in October 2023.
Leila Amirhamzeh, Director of Community Reinvestment for NJCA, issued a statement criticizing the move by the Trump administration. According to Amirhamzeh, "Once again, the Trump administration has put the interests of big banks over that of consumers. The Community Reinvestment Act is one of our only tools to ensure that banks are lending fairly in all communities where they take deposits and do business. Rescinding the 2023 final CRA rule weakens protections for consumers as well as incentives for banks to lend in low- and moderate-income communities at a time when these communities are struggling with a housing crisis and increasing economic uncertainty."
Emphasizing the necessity for updated fair lending and CRA requirements in the evolving landscape of online banking, Amirhamzeh further urged congressional members to support consumers. She stated, "We call on our members of Congress to stand with consumers, not banks, by voting against any further actions by the Trump administration to overturn critical consumer financial protection rules."
The NJCA’s concern reflects a broader debate about the balance between consumer protection and the regulation of financial institutions.
