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Federal Register Publications

FDIC Federal Register Citations



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FDIC Federal Register Citations

From: Laura Junglas [mailto:NPOrgDoc@earthlink.net]
Sent: Monday, September 27, 2004 8:12 PM
To: Comments
Cc: nmelton@ncrc.org
Subject: CRA regs

Mr. Robert E. Feldman
Executive Secretary
Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th St. NW 20429
RE: RIN 3064-AC50

Dear Mr. Feldman:

I am a concerned citizen opposed to watering down CRA (Community Reinvestment Act) requirements for mid-sized banks. CRA is vital for increasing homeownership and economic development in low and moderate-income communities. However, your proposed changes will halt the tremendous progress that has been made.

I understand that banks with over $250 million in assets must be tested on their number of loans, investments, and services to low- and moderate-income communities. But your proposal would eliminate the investment and service requirements for all banks with under $1 billion in assets. This will result in significantly fewer loans and investments in affordable rental housing, health clinics, community centers, and economic development projects.

In the watered-down exam, you would allow mid-sized banks to 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. In my opinion, as a former banker, the combination of loans, investments and services greatly benefits the community. CRA is good business for banks. Our commercial loan department made money at this activity!! The watered down version will allow banks to choose the easiest option which is not always beneficial to the community.

Finally, you would also eliminate publicly available data on the small business lending of mid-sized banks. Without data, community groups and citizens cannot hold banks accountable for lending to small businesses in their neighborhoods.

Your changes directly oppose CRA’s mandate to require lenders to meet community needs. CRA is too important to be gutted. Please drop your proposal like the two other federal agencies that recognized its harm to underserved communities.

Sincerely,
Laura Junglas
2623 Kingston Rd.
Cleveland Hts., OH 44118

Cc: National Community Reinvestment Coalition

Last Updated 10/06/2004 regs@fdic.gov

Last Updated: August 4, 2024