Federal Deposit
Insurance Corporation

From: jbrivera@lucha.org [mailto:jbrivera@lucha.org]
Sent: Monday, October 18, 2004 11:44 AM
To: Comments
Subject: Save the Community Reinvestment Act

Dear FDIC,

Mr. Feldman:

Latin United Community Housing Association (LUCHA) opposes your rule proposal that would ease Community Reinvestment Act (CRA) requirements for FDIC banks with assets under 1 Billion dollars. CRA is vital for increasing homeownership, promoting minority business ownership, meeting the community development needs of struggling communities and support the capital requirements of nonprofits.

We are very concerned that the proposed FDIC rule would be harmful to LUCHA's community and hundreds of towns, cities and rural areas across the United States.

In the new watered-down process for mid-size banks, FDIC would allow these financial institutions to pick and choose which community development activities they will undertake. Right now, these banks must make community development loans, investments, and services. Your proposed test allows banks to choose only one of the three activities. The result will be less community development activity. That will mean fewer jobs, fewer homes and fewer community services.

As I understand it, the Community Reinvestment Act was made law to require lenders to meet community needs. Your rule proposal flies directly in the face of this requirement. I urge you in the strongest possible terms to drop this hurtful rule proposal.

Juan B. Rivera
Executive Director
Latin United Community Housing Association (LUCHA)

Juan Rivera

3541 West North Ave.

Chicago, IL