FDIC Federal Register Citations

From: iespinosa@ymcachgo.org [mailto:iespinosa@ymcachgo.org]
Sent: Monday, October 18, 2004 11:08 AM
To: Comments
Subject: Save the Community Reinvestment Act

Dear FDIC,

Mr. Feldman:

I am a concerned citizen who opposes your rule proposal that would ease Community Reinvestment Act (CRA) requirements for most of the banks in the Chicago area. 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.

I am VERY concerned that the proposed Federal Deposit Insurance Corporation (FDIC) rule would be harmful to the low-income communities that the YMCA serves and hundreds of town, 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 in low income Chicago communities. 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. It would harm low income Chicago communities, the quality of my life and tens of thousands of Americans like me. Also, I fear that your rule will enable lenders who did open branches in low-income communities to close their doors if these branches are not as profitable as other branches in higher income neighborhoods. I urge you in the strongest possible terms to drop this hurtful rule proposal.

Irene Espinosa

501 N. Central Avenue

Chicago, IL