From: aditi [mailto:aditi_rao@alum.wellesley.edu]
Sent: Wednesday, October 20, 2004 2:56 PM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50

Mr. Robert E. Feldman

Executive Secretary

Attention: Comments/Legal ESS

Federal Deposit Insurance Corporation

RE: RIN 3064-AC50

Dear Mr. Feldman:

As a concerned citizen, I am writing to you to urge that you withdraw the proposed changes to the Community Reinvestment Act (CRA) regulations that would result in raising the asset threshold for small banks. Such a move would jeopardize the work done by non-profit and community organizations doing development in low and moderate income areas both urban and rural In its present form the CRA has been instrumental in increasing afforable housing, homeownership rates, and in increasing community development in communities across our nation. If the proposed changes go through, then some of the changes we can expect to see will include banks placing less (or even no) branches in low- and middle-income neighborhoods, since CRA examiners wouldn't be looking at this criterion; mid-size banks will no longer make efforts towards providing affordable bank accounts for people with moderate incomes; and mid-size banks will probably make it more difficult and expensive for small businesses to borrow money, as the proposal would end small-business lending data reporting. In conclusion, the proposal on the table is in direct opposition to the CRA's mandate of imposing an obligation to meet community needs. If these proposed regulations are implemented, I will contact my senators directly and ask that the Senate stop these harmful changes.

Sincerely,

Aditi J. Rao

Department of City and Regional Planning, Department of Architecture

College of Environmental Design

UC Berkeley