WASHINGTON REGIONAL NETWORK FOR LIVABLE COMMUNITIES

September 14, 2004

Donald E. Powell
Chairman
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429

John M. Reich
Vice Chairman
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429

Thomas J. Curry
Director
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429

John D. Hawke, Jr.
Comptroller of the Currency
Office of the Comptroller of the Currency
250 E. Street NW
Washington, DC 20219

RE: Proposed Change in CRA Exam Threshold

Gentleman:

Despite the successes locally and nationally of community investment, 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.

We have been informed by our association, the National Congress for Community Economic Development that 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 communities and elsewhere throughout the nation.

We are very concerned that this step is being taken without Congressional action. Our legislators know that 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.

Thank you for your consideration.

Sincerely,
Cheryl Cort
Executive Director