Federal Deposit
Insurance Corporation

From: Noemi Flores [mailto:nflores_25@yahoo.com]
Sent: Tuesday, October 19, 2004 3:28 PM
To: Comments
Subject: Oppose Efforts to Weaken CRA RIN number 3064-AC50

Noemi Flores
2513 Cherry Creek Dr.
Durham, North Carolina 27703

October 19, 2004

Federal Deposit Insurance Commission

Dear Federal Deposit Insurance Commission:

Despite the successes of community development locally and nationally, the banks and thrift institutions that provided the loans, services, and investments to build new homes, businesses, and community facilities may no longer have the impetus to do so if the FDIC raises the comprehensive CRA exam threshold.

I agree with the National Congress for Community Economic Development that this proposed change would have a devastating effect on affordable housing and community development investment throughout the nation, particularly in rural areas.

The FDIC proposes that the community development loans and investments in rural areas can benefit any group of individuals, 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.

Please rescind your proposal.

Sincerely,
Noemi Flores