FDIC Federal Register Citations

From: Kristy Palumbo [mailto:heartofthecity@verizon.net]
Sent: Thursday, September 16, 2004 4:26 AM
To: Comments
Subject: Weakening of the Community Reinvestment Act
Dear Mr. Feldman:

I am an extremely concerned representative of a not-for-profit housing agency strongly opposed to your proposal to significantly weaken the Community Reinvestment Act (CRA). You propose much easier CRA requirements for banks between $500 million to $1 billion in assets. This proposal will result in much fewer home and small business loans to low- and moderate-income borrowers and much fewer community development loans and investments in low- and moderate-income communities. In addition, you propose that banks can earn CRA points by financing community development projects that benefit affluent residents in rural areas, instead of low- and moderate-income consumers and communities in rural America. This is directly contrary to CRA’s focus on meeting credit needs of low- and moderate-income communities. In sum, all of your proposals will result in much fewer loans, investments, and branches in low- and moderate-income communities.

Please withdraw your harmful proposal.

Sincerely,

Kristy Palumbo
Executive Director
Heart of the City Neighborhoods, Inc.
42 Plymouth Avenue
Buffalo, NY 14201
Phone: (716) 882-7661
Fax: (716) 882-7662