The Office of the Comptroller of the Currency (OCC) has finalised two rules designed to lessen compliance requirements for community banks.  

These changes are part of the OCC’s approach to align supervision and regulation more closely with the risk levels of individual banks. 

One of the newly finalised rules revokes the Fair Housing Home Loan Data System regulation.  

This regulation previously required national banks to collect and report data on home loan applications.  

The OCC said that the requirement was outdated and mostly “duplicative”, and that removing it would not affect the data needed for its fair housing oversight. 

OCC Currency Comptroller Jonathan V. Gould said: “Community banks serve critical constituencies and lend to Main Street businesses, that in turn support vibrant local economies. 

“Unfortunately, over the last couple of decades, regulatory burdens coupled with the proliferation of a one-size-fits-all supervisory framework have cut the number of community banks across our nation in half.  

“As Comptroller, I’ve prioritised addressing the challenges of community banks by streamlining regulation and tailoring supervision. Today’s actions execute on meaningful reforms as we continue working to help these institutions best serve the American people on a level playing field.” 

Another rule streamlines licensing procedures for community banks involved in corporate activities or transactions.  

The OCC is extending eligibility for faster or reduced filing processes, aiming to simplify administrative procedures linked to such activities. 

According to the OCC, these measures are intended to reduce administrative demands on community banks while maintaining supervisory standards.