Comptroller of the Currency Joseph Otting is scheduled to testify in front of the House Financial Services Committee on Jan. 29, setting up a potential fight between House Democrats and Otting on the Community Reinvestment Act overhaul, MorningConsult.com reported. Otting missed appearing with other financial regulators in early December, although he submitted written testimony. His absence drew harsh criticism from committee Democrats, who have grown increasingly concerned over the Office of the Comptroller of the Currency’s plans to revamp the Community Reinvestment Act. The OCC has led efforts to overhaul, for the first time in a quarter-century, the Community Reinvestment Act. The more-than 200-page proposal released by the OCC and the Federal Deposit Insurance Corp. would allow banks more flexibility on meeting the government mandate for lending to poor neighborhoods. In an added wrinkle, while the FDIC has signed on to the OCC’s plan, the Federal Reserve has not, creating potential compliance issues for banks if the regulators continue without a joint rule.
