Its a maxim that regulators can never quite catch up with the changes made by practitioners. Mobile banking threatens to become the next example of that concept. It very well could lead to undermine the Community Reinvestment Act (if unwittingly) unless some kind of regulatory fix occurs first.
The new Community Reinvestment Act Modernization bill (HR 1479) seeks to help that legislation catch up with the set of financial innovations that have occurred since the bill was last modified in 1993. A lot has happened. There is a lot of catching up to do.
That bill was drafted this spring. Even now, though, it appears that the market is changing so fast that there could be a need for new amendments to the bill's language before it is heard by the House Financial Services committee in the fall.
Today, there is news out of Charlotte than Bank of America is going to close one out of every ten of