Herbert M. Moses
Posted on 09/30/2008 11:57:51 AM PDT by mnehring
WASHINGTON—House Financial Services Committee Ranking Member Barney Frank (D-MA) and Rep. Bernie Sanders (I-VT), the Ranking Member of the Financial Institutions and Consumer Credit Subcommittee today called for a hearing into proposed changes to Community Reinvestment Act (CRA) regulations.
The Federal Deposit Insurance Corporation (FDIC) Tuesday announced its proposed rulemaking that would allow institutions with up to $500 million in assets, instead of $250 million according to current rules, to face less stringent CRA requirements. The proposed rule would also let institutions exclude lending activities of certain affiliates from CRA examinations and create a vague and weak anti-predatory lending standard.
In a letter to Committee Chairman Michael Oxley (R-OH) Reps. Frank and Sanders stressed the need for Congress to review the impact of the proposed regulations. The financial regulators have also heard from several community groups opposed to the changes. Last week during the Federal Reserve Board’s hearing in Boston on the proposed merger of FleetBoston and Bank of America numerous speakers stressed the importance of the CRA as a tool for community and economic development.
“The regulators’ proposals to cut back on CRA goes in precisely the wrong direction,” said Rep. Frank. “For example, with financial industry consolidation going forward so rapidly, allowing institutions to exclude large parts of their activities from CRA requirements is an assault on the principles behind the Act.”
“The Community Reinvestment Act has been instrumental in increasing affordable housing, and making sure that banks throughout this country play a more responsible role in their communities,” said Rep. Sanders. “The CRA is working extremely well and must not be weakened. Instead of diminishing the CRA, as the proposed regulations call for, we must strengthen it. If this proposal goes into effect, fewer people will realize the dream of homeownership, fewer small businesses will get off the ground, fewer jobs will be created, and fewer neighborhoods will be rebuilt. I look forward to working with the regulators and Ranking Member Frank, and other Members of the Financial Services Committee to make sure that this disastrous proposal does not go into effect.”
The Community Reinvestment Act was enacted in 1977 to address redlining by requiring banks to make loans in neighborhoods where they collect deposits. The Federal Reserve Board, the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS) are expected to approve the proposal soon and issue it for public comment.
McCain should be on this like a fly on a turd
It keeps getting better and better Ping.
Mnehrling,
Thank you very much for posting this information!
Best Regards,
Top sends
I know the CW is that the Republicans needed this bailout to make this “crisis” go away. Still, I have to wonder. Could it be that the longer we go without a “bailout” being passed the more the democrat complicity in causing this problem comes to the fore?
I know the CW is that the Republicans needed this bailout to make this “crisis” go away. Still, I have to wonder. Could it be that the longer we go without a “bailout” being passed the more the democrat complicity in causing this problem comes to the fore?
You have got to find a way to get this stuff you are digging up into the MCCain camp’s hands! It’s awesome!! Please put me on your ping list.
CRA is working extremely well. ACORN has fraud charges in 12 states already and with new funding could do much better /s
ACORN should not be part of any plan. With the droves of thugs they have today they have no financial problems and any poor they have helped in the past get houses are now losing them because ACORN didn’t put the poors needs over profit and corruption.
GAYDAR ALERT!
Barney Frank’s Fannie Friend.
(giggle)
Ping the Obama Action Wire Response Team-
Get this information out!
... or a turd sandwich perhaps?
Yum
The ‘Rats needed to forestall the crisis because they know that their fingerprints are all over the whole mess. Obama helped ACORN bully banks into giving loans to people who had no means to pay it back. ‘Rats ALWAYS seek a short term bandaid that does nothing except delay the inevitable for their personal gain. It is about their greed for personal power.
Well, well, well ...
George H.W. Bush signed the Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA) to help recover from the Savings and Loan Disaster.
Then Clinton added regulations to CRA that demanded even more low income loans and changed the requirements so they reflected race as well as neighborhood.
But the worst addition to CRA, in my opinion, was allowing "Community Groups", such as ACORN to collect fees for marketing loans to their clients. So the Community Groups demanded more loans for low income folks - received money for pushing them toward loans they couldn't really afford - and now blame government for their own irresponsible actions.
WASHINGTON---A contingent of House Democrats, led by House Financial Services Committee Ranking Member Rep. Barney Frank (D-MA), called on the Office of Thrift Supervision (OTS) to discontinue its efforts to weaken the Community Reinvestment Act (CRA).
The OTS announced in February its proposal to allow thrifts with $1 billion or more in assets be exempted from the investment and service tests under CRA.
The Community Reinvestment Act was enacted in 1977 to address redlining by requiring banks to make loans in neighborhoods where they collect deposits.
A copy of letter to the OTS is attached here.
btt
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