| September 12, 2003
Public Information Room
Office of the Comptroller of the Currency
250 E Street, S.W.
Mailstop 1-5
Washington, D.C. 20219
Ms. Jennifer J. Johnson
Secretary, Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, N. W.
Washington, D.C. 20551
Docket No. R-1151
Mr. Robert E. Feldman
Executive Secretary
Attention: Comments, Federal Deposit Insurance Corporation
550 17th Street, N.W.
Washington, D.C. 20429
Regulation Comments
Chief Counsel's Office
Office of Thrift Supervision
1700 G Street, N.W. Washington, D.C. 20552
Attention: Docket No._____, regarding the Economic Growth and
Regulatory Paperwork Reduction Act of 1996
To Whom It May Concern:
The National Community Reinvestment Coalition ("NCRC"), the nation's
Community Reinvestment Act trade association of more than 600 community
organizations and local public agencies, is sending this comment in
response to the Notice of Regulatory Review as required by the Economic
Growth and Regulatory Paperwork Reduction Act of 1996. In response to
the first series, that includes "Applications and Reporting," "Powers
and Activities," and "International Operations," NCRC respectively
requests that the federal banking agencies retain their regulations
concerning the Community Reinvestment Act's merger application process.
Also, NCRC requests that the Office of the Comptroller of the Currency
("OCC") retain its regulations concerning debt cancellation contracts
and debt suspension agreements.
The Community Reinvestment Act ("CRA") states "regulated financial
institutions have continuing and affirmative obligations to help meet
the needs of the local communities in which they are chartered."
Community organizations and the general public have a vital role to play
in the bank merger application process. Federal agencies recognize that
citizens, as consumers of banking services, have insights on bank merger
applications that cannot occur to regulatory staff who are not directly
affected by a bank's application to merge or change its services. Only
if federal agencies have well-informed comments from all affected
parties - consumers, local governments, and local businesses as well as
banks - will federal agencies have the complete information necessary to
weigh all of the ramifications of the merger applications.
To that end, NCRC requests that the federal banking agencies retain
and consider the bank merger application process as a necessary
regulatory requirement. For example, the OCC's Rules, Policies and
Procedures for Corporate Activities (Part 5) generally provides a 30-day
comment period. Community groups must be keenly aware of this short time
period for bank applications. This short period does not allow a great
deal of time for community groups to understand and comment on the
merger application. Any diminution of procedures and time in the public
notice and comments process would be detrimental to consumers. Any
shortening of the process would also be inconsistent with the agencies'
statutory responsibilities to fully consider CRA and fair lending
aspects of bank applications.
In September 2002, the OCC issued its ruling on debt cancellation
contracts ("DCC") and debt suspension agreements ("DSA"). The rule
restricted bank practices in these areas. It required banks to provide
disclosures and other safeguards for customers interested in these
products. The rule also prohibited national banks from offering single
premium DCCs and DSAs in connection with mortgage loans. At the time of
the final rule, the OCC received two comments stating that the rule was
unduly burdensome. NCRC urges the OCC not to change these rules and
weaken consumer protections during its review of regulations and
statutes.
Finally, NCRC urges the Federal Deposit Insurance Corporation
("FDIC") not to diminish data reporting requirements associated with
call reports. Call reports provide critical information to the
regulatory agencies and the general public regarding the safety and
soundness of financial institutions. If anything, the amount of call
report data should be increased and include more information about
subprime lending activities (as NCRC and our members commented
previously when the agencies were considering adding information about
subprime lending to the call report data).
NCRC urges the federal banking agencies to consider the benefits of
the public comment period for bank mergers, the DCC and DSA
requirements, and the FDIC data reporting requirements. NCRC appreciates
this opportunity to comment and requests that the federal banking
agencies notify us of any changes that may occur due to this inquiry.
These procedures are vital to consumers as protective and necessary
measures.
Please contact me or Kelly Brinkley, NCRC's Legislative and
Regulatory Affairs Director, on 202-628-8866 with any questions
regarding our comment.
Sincerely,
John Taylor
President & CEO
National Community Reinvestment Coalition
Washington, DC
| 
