CHN: FDIC Considering Rules That Would Gut Community Reinvestment Act
The Federal Deposit Insurance Corporation (FDIC) is considering making rule changes that would weaken significantly the Community Reinvestment Act, which could have a potential devastating effect on affordable housing investments in rural areas.
Financial institutions holding less than $1 billion in assets would no longer be evaluated by the FDIC on their investment or services to low- and moderate-income communities. Current regulations require banks with assets over $250 million to be tested on lending, investments and services that benefit low-income communities. The proposed rules would radically reduce the number of financial institutions evaluated on their community investments – as many as 2,000 banks will no longer be evaluated. Fewer than six percent of depository institutions have assets more than $1 billion. To see which financial partners may no longer be graded on investments or services, click here .
Advocates are urged to flood the FDIC with comments about the proposed rule. The FDIC is accepting comments on the proposed rule until October 20, 2004 . (The agency extended the original comment after getting nearly 1,400 letters from concerned groups.) To e-mail comments to the FDIC , click here ! Quantity counts!
The National Community Reinvestment Coalition is holding a conference call on Monday, October 4 at 3:30 p.m. EST to educate as many organizations as possible about the FDIC attack on CRA. The conference call phone number is 1-888-955-5366 and the pass code is 620050#. If you would like more information about the call, contact: Josh Silver at the National Community Reinvestment Coalition at e-mail firstname.lastname@example.org or phone (202) 628-8866.
For More Information:
CLICK HERE to see NCRC’s talking points and sample letters and to send comments to FDIC
National Community Reinvestment Coalition
National Congress for Community Economic Development