From: Robin Amadon [mailto:robina@LIHI.ORG]
Sent: Friday, September 17, 2004 3:11 PM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50
To Whom it May Concern:
I am writring today to oppose the FDIC's proposal to allow large
financial institutions to alter the way in which they are examined
regarding Community Reinvestment Act requirements. Have the memories
all gone dotty in so few years? Does anyone remember the practice
of redlining in major urban areas in the 1960's, 1970's and the
ways in which this practice choked credit from our older, gracious
and graceful communities, starving the middle class minority community
of access to credit to preserve their housing, buy homes, secure
homeowner insurance and reinvest in their communities? The larger
financial institutions withdraw funds from neighborhoods, and now,
would like to avert their responsibility to support them. Under
no circumstances should you allow this rule change; you will take
a step backward, further racism in a world that keeps trying to
get united for the purpose of prosperity, family and stability.
The CRA and the requirement that large institutions meet its requirements
is the lifeblood of extremely valuable community lending and neighborhood
support. As we know, many people don't do things out of the goodness
in their heart; they do things because regulation and rules require
it of them. The community investments are SOUND, LUCRATIVE investments,
but still, institutions will shy away from them because of institutional
racism, short-sightedness or plain unwillingness to do deals in
urban areas. The lure of suburbia has been all too great; and now,
inner ring suburbs face similar problems with access to credit.
Please, please, please do not change the rules allowing institutions
to be examined as small banks are. It would be such an unnecessary
change and a huge disservice to the communities that depend on
financing to stay healthy and thrive.
Thank you for your kind consideration of my views.
Robin Landy Amadon
Low Income Housing Institute
2407 First Avenue, Suite 200
Seattle, WA
