OTS Director Stepping Down

Office of Thrift Supervision Director James Gilleran said he will step down April 29 after leading the agency for nearly four years.The surprise announcement comes after Mr. Gilleran revamped the agency's Community Reinvestment Act regulations and forced the other banking regulators to relax their CRA regulations. His actions angered Democrats on Capitol Hill, and 39 congressmen signed an April 12 letter criticizing his unilateral actions to "weaken CRA." During his tenure, Mr. Gilleran pushed through a regulation that prevents state-chartered lenders from using OTS Parity Act regulations to avoid state restrictions on prepayment penalties and late fees. Subprime lenders challenged the OTS's interpretation of the Alternative Mortgage Transaction Parity Act, but the OTS prevailed in federal court. The former California banker and state banking supervisor also eliminated an operating deficit at the OTS by downsizing the agency. Mr. Gilleran has not revealed his plans. "The thrift industry is better for his leadership and service, and the thrift charter is as strong as it ever has been," said Diane Casey-Landry, president of America's Community Bankers. "We wish Jim well in his future endeavors."