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FDIC Federal Register Citations
From: Karen Blandford [mailto:kblandford@westgov.com]
Sent: Tuesday, October 19, 2004 2:00 PM
To: Comments
Cc: Rosemary Ngwiri
Subject: RIN 3064-AC50
FDIC staff:
As a community development professional in a small city in Maryland,
I am opposed - strongly - to the proposed changes in the Community
Reinvestment Act (CRA).
In the past decade, I have seen the amount of investment local banks
make in community projects plummet. When I first came to Westminster,
every charitable event could count on the myriad of locally owned banks
to contribute not only money but, equally important, manpower. Bankers
were involved in the business community - not only the Chamber, but
the smaller merchant groups. They were involved in the charitable community
- from chairing capital fundraising committees to helping pack meals
for the homebound.
Bankers used to regularly call me and meet with me for ideas on how
to better serve the needs of low income people. Bank examiners regularly
visited my office to see how the local banks were performing.
Now, most of our local banks have been bought out by larger institutions.
No longer are local bankers active in all aspects of the community.
Mortgage brokers often prey on low income families trying to buy their
first house. Charities desperate for assistance often "call too
late" for local banks to give.
I haven't heard from any bank examiners in years.
Although many of our local banks still give - the local hospital expansion
has been generously supported, and a crew of workers from a small bank
were out in the United Way's Day of Caring - the activity level is
much lower. They do not need to meet their CRA obligations in our small
town anymore. They can buy Low Income Housing Tax Credits in places
that are much larger then we are, and the bank's obligations will be
met.
I fear the change that may happen if the proposed CRA changes go through.
The estimate is that 76% of the banks in my state will no longer have
to invest in the low income communities from which they take deposits!
Any watering down of CRA requirements will drastically hurt small communities
like ours. We would like the FDIC on our side as we strive to make
a healthy community.
Thanks,
Karen Blandford
Manager, Housing and Community Development
City of Westminster, MD
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