The U.S. District Judge Matthew Kacsmaryk in the Northern District of Texas (Amarillo Division) issued a preliminary injunction requested by TBA and aligned trade groups blocking the Federal banking regulators from enforcing their revised CRA Final Rules pending resolution of the joint banking and business industry lawsuit.
TBA and our member banks are pleased to play a leading role in this effort to stop Federal Banking Agencies from abusing and over-reaching their authorities. In addition to TBA, co-plaintiffs in the case include the American Bankers Association, the U.S. Chamber of Commerce, Independent Community Bankers of America, Independent Bankers Association of Texas, Amarillo Chamber of Commerce and Longview Chamber of Commerce.
The order states that “Plaintiffs demonstrate a substantial likelihood of success on the merits” and that Federal banking regulators’ interpretation of key elements contained in the Final Rule, “clashes with the text of the CRA” as passed by Congress.
You can read the Judge’s complete order enjoining the Federal Banking agencies from enforcing the new CRA regs here or click on the image of the order.
Trade Groups Welcome Injunction Delaying CRA Rules Implementation
The American Bankers Association, the U.S. Chamber of Commerce, Independent Community Bankers of America, Texas Bankers Association, Independent Bankers Association of Texas, Amarillo Chamber of Commerce and Longview Chamber of Commerce issued the following statement after the decision by the Northern District of Texas late Friday to pause implementation of the Community Reinvestment Act Final Rules:
“We welcome this decision by the Northern District of Texas pausing implementation of the Community Reinvestment Act Final Rules until the litigation we filed challenging the rules can be resolved. While we strongly support the goals of CRA, the Final Rules exceeded the banking agencies’ regulatory authority and created disincentives for banks to lend in low- and moderate-income communities that need access to credit the most. We look forward to a ruling on the merits in this matter.”