FDIC Federal Register Citations

From: John Colgan [mailto:JTColgan@aol.com]
Sent: Monday, September 20, 2004 9:51 AM
To: Comments
Subject: Oppose Efforts to Weaken CRA RIN number 3064-AC50

John Colgan
ICAA 3435 Liberty Drive
Springfield, IL 62704

September 20, 2004

Federal Deposit Insurance Commission
,

Dear Federal Deposit Insurance Commission:

Federal Deposit Insurance Commission,

I have recently heard that the Federal Deposit Insurance Corporation
(FDIC) may exempt more than 2,000 financial institutions from
comprehensive CRA exams, resulting in $5 billion less in investments
available to community developers. It is my understanding that 94% of
depository institutions (or 2,200 banks) would no longer have services or
investment CRA requirements. This is unacceptable and therefore I am
writing to voice opposition to weakening the Community Reinvestment Act,
RIN number 3064-AC50.

Despite recent successes of community development in local communities and
nationally, it is absolutely essential that the banks and thrift
institutions that provided the loans, services, and investments to build
new homes, businesses, and community facilities be required to continue
providing these vital services. If the FDIC raises the comprehensive CRA
exam threshold, it is clear that many financial institutions will no
longer have the incentive to do this. I agree with the National Congress
for Community Economic Development that the proposed change would have a
devastating effect on affordable housing and community development
investment throughout the nation, particularly in rural areas. The
proposed changes will be undermining proven laws that revitalize
communities, increase minority homeownership, and increase small business
ownership for women and minorities.

Please rescind your proposal.

Sincerely,

John T. Colgan, Director of Public Policy
Illinois Community Action Association

Sincerely,

John T. Colgan