George Schelter
675 E. Algonquin Rd.
Des Plaines, IL 60016

October 7, 2004

Federal Deposit Insurance Commission
Dear Federal Deposit Insurance Commission:

Dear Administrators of the FDIC:

I strongly oppose CRA RIN 3064-AC50. Please rescind the proposed change. These changes would have a devastating effect on affordable housing and community development investment throughout the nation, particularly in rural areas.

To broaden the scope of community development loans and investments in rural areas from low and moderate income individuals to any group of individuals will undercut the purpose and effectiveness of the CRA. not just low- and moderate-income individuals. Currently, banks have to finance affordable housing and economic development projects that target low- and moderate-income borrowers and neighborhoods.

Under the proposed changes, nothing in the CRA regulations would prevent banks from earning CRA points for financing developments with no community development benefit whatsoever. Moreover, the one part exams would cover 99 percent of all FDIC-supervised banks located in rural areas.

President Bush’s comments promoting an "Ownership Society" are truly disingenuous if the actions of officials he appointed are undermining proven laws that revitalize communities, increase minority homeownership, and increase small business ownership for women and minorities.

Please rescind your proposal.

Sincerely,
George M. Schelter