Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996

Chief Counsel's Office Comment Processing Office of the Comptroller of the Currency 400 7th Street SW, Suite 3E-218 Washington, DC 20219 RE: Comment on the Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 [OCC: Docket ID OCC-2023-0016] To Whom It May Concern: This comment letter is submitted by Axos Bank in response to the joint agency request for public input published in the Federal Register on July 25, 2025, by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively: the Agencies). This submission addresses matters related to the Community Reinvestment Act (CRA), pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). Axos Bank appreciates the opportunity to provide feedback, particularly as the nation's first online-only federally chartered institution. Axos has operated as a digital bank for 25 years and serves communities and customers nationwide. The Bank has three Branch locations (San Diego, CA, Las Vegas, NV, and Sandy, UT) and is committed to strong risk management practices, rapid innovation, and stellar customer service. The Community Reinvestment Act (CRA) remains a foundational regulation that ensures fair and equitable access to credit, investment, and financial services, particularly in low-and moderate-income areas. As regulations under CRA continue to evolve, it is essential that they remain aligned with both consumer protection goals and the operational realities faced by modern financial institutions, including digital banks. After reviewing the CRA framework in detail, Axos bank respectfully offers the following observations and recommendations for consideration. CRA regulations, in their current form, do not fully reflect the unique characteristics of digital banking institutions. Consumer behavior has shifted dramatically due to technology, convenience, and personal preference, influencing where and how consumers choose to bank. Physical location no longer plays a vital role it once did in a consumer's banking decision-making process. Digital banks like Axos typically serve a geographically diverse customer base spanning multiple states, cities, and metropolitan areas across the U.S. in contrast, similarly sized community banks operating under traditional branch models tend to have customers concentrated near their physical locations. These structural differences play a critical role in shaping the appropriate metrics for evaluating CRA performance. Without accounting for digital business models, existing CRA metrics may unintentionally penalize digital institutions or push them toward costly strategic shifts, such as originating more FHA or VA loans solely to meet CRA targets, without a clear, corresponding benefit to LMI borrowers. Alternatively, rigid, geography-based lending benchmarks may fail to recognize the broader reach digital institutions have in serving undeserved populations across the country. Axos Bank urges the Agencies to thoughtfully consider CRA modernization that incorporates flexibility for institutions that primarily operate through digital channels. An adaptive framework that recognizes business model distinctions will enable fairer evaluations while preserving the original intent of CRA – to ensure access to credit and financial services for low- and moderate-income communities nationwide. Your time and consideration are greatly appreciated. Warm regards, Axos Bank Compliance Department