Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th St. NW 20429
RE: RN 3064-AC50
I writing to express my sincere concern regarding the proposal to
increase the threshold definition of small banks. The Community
Reinvestment Act (CRA) has been instrumental in increasing
homeownership, boosting economic development, and expanding small
businesses in the nation's minority, immigrant, and low- and
moderate-income communities. The proposed changes are contrary to the
CRA statute and Congress' intent because they will slow down, if not
halt, the progress made in community reinvestment.
The proposal will drastically reduce, by hundreds of billions of
dollars, the bank assets available for community development lending,
investing, and services. More specifically, the proposal will reduce the
number of participating institutions in Pennsylvania by 75%. Notably,
nearly one in four Pennsylvanians lives in a rural area. In 2000, the
rural poverty rate was 9 percent. In Pennsylvania, an extremely Iow
income household (earning $17,407, 30% of the Area Median Income of
$58,022) can afford monthly rent of no more than $435, while the Fair
Market Rent for a two bedroom unit is $681.
I strongly urge the reconsideration of the proposal. The impact is
detrimental to the quality of life for those we serve.
Sincerely,
Theodore R. Dreisbach
Executive Director
Schuylkill Community Action
206 North Second St.
Pottsville, PA 17901
