Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Federal Register Publications

FDIC Federal Register Citations



Home > Regulation & Examinations > Laws & Regulations > FDIC Federal Register Citations




FDIC Federal Register Citations



CHILDREN'S DEFENSE FUND

Robert E. Feldman
Executive Secretary
Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429-9990.

RE: R1N 3064-AC50

Dear Mr. Feldman:

The Children's Defense Fund opposes the Federal Deposit Insurance Corporation's (FDIC) proposed rule changes to the Community Reinvestment Act (CRA). One change would raise the asset level for banks subject to CRA exams on services, investment and lending from $250 million to $1 billion. Another change would eliminate the low- and moderate-income targeting requirement for receiving credit under CRA for about 1,600 of the over 5,000 banks you regulate, most of which are in rural areas.

To date, CRA has been instrumental in increasing homeownership, boosting economic development, and expanding small businesses in the nation's minority, immigrant, and low- and moderate-income communities. Currently, mid-size banks, those with assets between $250 million and $1 billion, must engage in lending, investing, and providing services in the communities. Under your proposal, a mid-size bank cease providing an array of comprehensive community development activities needed to ensure low- and moderate-income families and communities continue to thrive.

The proposed change will result in significantly fewer loans and investments in affordable rental housing, Low-Income Housing Tax Credits, community service facilities such as health clinics, and economic development projects. Mid-sized banks could skirt compliance by spreading around a few grants or sponsoring a few homeownership fairs rather than engaging in comprehensive efforts to provide community development loans, investments, and services. Mid-size banks would have no incentive to make sustained efforts to provide affordable banking services, and . checking and savings accounts to families with modest incomes, nor maintain and/or build bank branches in low- and moderate-income communities. The proposed targeting change would divert community development activities away from the low- and moderate-income communities and families that CRA currently targets further threatening rural areas.

Children's Defense Fund urges you to reserve your call for these rule changes that will negatively impact low- and moderate-income families. If the proposed changes are enacted, the Administration's goals of creating 5.5 million new minority homeowners by the end of the decade will be thwarted, low-and moderate-income families with children will have less access to affordable banking services, and low and moderate income community development will be dramatically slowed.

Sincerely,
Deborah Cutler-Ortiz
Director of Family Income and Jobs Division
Children's Defense Fund

Last Updated 09/16/2004 regs@fdic.gov

Last Updated: August 4, 2024