Federal Deposit
Insurance Corporation

Mark Chudwick
FSW 475 Clinton Avenue
Bridgeport, CT 06401

September 16, 2004

Federal Deposit Insurance Commission

Dear Federal Deposit Insurance Commission:

Despite the successes of community development locally and nationally, the banks and thrift institutions that provided the loans and investments to build new homes, businesses, and community facilities may no longer have the impetus to do so if you change the CRA exam threshold.

According to our membership association, the National Congress for Community Economic Development, the Federal Deposit Insurance Corporation is considering changes to weaken the Community Reinvestment Act.

It is estimated that 2,000 financial institutions would no longer be evaluated on their investment or services to low- and moderate-income communities. These banks have assets of nearly $1 trillion, and an estimated $5 billion of private capital for affordable housing and community development over the next few years.

These proposed rule changes would have a devastating effect on affordable housing investment in our state and elsewhere throughout the nation, particularly in rural areas.

Our organization has for decades worked with our local financial institutions to help people build personal assets which create brighter futures for themselves and their communities. Without financial partners, our efforts to revitalize our community would be nearly impossible.

The FDIC should be strengthening incentives for financial institutions to invest in the communities that provide homes, jobs, and economic opportunities to working families. Please do not raise the CRA exam threshold.

Sincerely,

Mark P. Chudwick
203.368.4291