wlm4 at cornell.edu (Will
01-15-1995, 12:17 PM
This is reposted from Handsnet. Wasn't it only a few months ago that Rep
Kennedy was holding hearings about extending CRA to ALL lenders?
++++++++++++++++Republican Attack on the Community Reinvestment
Act++++++++++++++++++++++++
It didn't take long for the Republican Congress to launch their first
attack on the Community Reinvestment Act (CRA). Representative Bill
McCollum (R-8-FL) has introduced the Community Reinvestment Improvement Act
(H.R. 317), a bill that would substantially gut the CRA. The bill
establishes a "safe harbor" for banks with a "satisfactory" or better CRA
rating (93% of all lenders), exempts lenders under $100 million in assets or
in towns under 25,000, and allows lenders under $500 million in assets to
self certify their CRA performance.
In the coming weeks, the National Community Reinvestment Coalition
(NCRC) will be organizing opposition to the bill. A copy of the bill is
attached to this post.
********
104th CONGRESS
1st Session
H. R. 317
To amend the Community Reinvestment Act of 1977 to reduce onerous
recordkeeping and reporting requirements for regulated financial
institutions, and for other purposes.
__________________________________________________ ___________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 1995
Mr. McCollum introduced the following bill; which was referred to the
Committee on Banking and Financial Services
__________________________________________________ _____________________
A BILL
To amend the Community Reinvestment Act of 1977 to reduce onerous
recordkeeping and reporting requirements for regulated financial
institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Reinvestment Improvement
Act of 1995''.
SEC. 2. MODIFIED EVALUATIONS.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by adding at the end the following new section:
``SEC. 809. MODIFIED EVALUATIONS.
``(a) Scope.--In lieu of being evaluated under section 804 and
receiving a written evaluation under section 807, an institution's
record of meeting the credit needs of its entire community with respect
to any calendar year shall be evaluated pursuant to this section if the
institution--
``(1) has not been found to be in violation of section
701(a) of the Equal Credit Opportunity Act, or any other
provision of such Act, during the five-year period preceding
such calendar year;
``(2) has not received a rating of `needs to improve' or
`substantial noncompliance' from the supervisory agency in the
most recent evaluation of the institution under section 807;
``(3) has not been disqualified from evaluation under this
section by the supervisory agency pursuant to a provision of
this section; and
``(4) has, as of the December 31 preceding the beginning of
such calendar year, total assets of less than $500,000,000.
The dollar amount in this subsection shall be adjusted annually after
December 31, 1994, by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.
``(b) Modified Evaluation.--An institution which is described in
subsection (a) with respect to any calendar year shall, during such
year--
``(1) maintain internal policies to help meet the credit
needs of its local community consistent with the safe and sound
operation of such institution;
``(2) declare in writing to the supervisory agency, at such
time as the agency shall prescribe by regulation, that the
institution--
``(A) is an institution described in subsection
(a); and
``(B) is in compliance with this subsection;
``(3) display any notices as required by the supervisory
agency concerning the institution's compliance with the
requirements of this Act; and
``(4) make available for public inspection the following
information regarding the record of such institution in meeting
the credit needs of its entire community--
``(A) an identification of the community it serves;
``(B) a list of the types of credit offered by the
institution;
``(C) public comments received during such year or
any of the two years immediately preceding such year
regarding the institution's service of the entire
community's credit needs; and
``(D) copies of any declaration submitted under
subparagraph (2).
``(c) Regulatory Evaluation.--
``(1) In general.--The supervisory agency shall conduct an
evaluation of an institution's compliance with this section in
connection with its examination of such institution, or every
two years, whichever is more frequent.
``(2) Notice.--Upon commencing a compliance evaluation
pursuant to the section, the supervisory agency shall provide
public notice stating that it is conducting such evaluation of
the institution.
``(3) Procedure.--In performing periodic evaluations of
institutions pursuant to subsection (c) of this section, the
supervisory agency--
``(A) shall review the institution's existing
business records and shall not require the institution
to produce documentation other than existing business
records, and
``(B) shall review any additional information
provided by the institution or other interested
parties.
``(4) Disqualification.--In addition to any administrative
enforcement action authorized under any other provision of law,
if the supervisory agency determines after an evaluation under
this subsection that the institution is not in compliance with
this section, then the supervisory agency may determine that
the institution shall be disqualified from evaluation under
this section for such period as the agency may determine to be
appropriate.
``(e) Penalties.--In addition to any criminal or civil penalty or
any administrative enforcement action authorized under any other
provision of law, if the supervisory agency finds that an institution
has intentionally submitted false information to the supervisory agency
or otherwise willfully violated the requirements of subsection (b), the
institution shall be disqualified from evaluation under this section
such period, not to exceed ten years, as the agency may determine to be
appropriate.
``(f) Definitions.--
``(1) `Institution' means a regulated financial institution
meeting the requirements of subsection (a).
``(2) `Supervisory agency' means the appropriate Federal
financial supervisory agency of a regulated financial
institution.''.
SEC. 3. EVALUATION EXEMPTION.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by inserting after section 809 (as added by section 2 of this
Act) the following new section:
``SEC. 810. EVALUATION EXEMPTION.
``A regulated financial institution shall not be subject to the
evaluation requirements of this title or any regulations issued under
this title if--
``(1) the main office and each branch of such institution
is located in an incorporated city or town, or an
unincorporated place recognized by the Census Bureau that has a
population of not more than twenty-five thousand persons; and
``(2) the aggregate assets of the institution and any
company which is a depository holding company with respect to
such institution (as defined in section 3(w) of the Federal
Deposit Insurance Act) are less than $100,000,000.
The dollar amount in this section shall be adjusted annually after
December 31, 1995, by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.''.
SEC. 4. SAFE HARBOR.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by inserting after section 810 (as added by section 3 of this
Act) the following new section:
``SEC. 811. SAFE HARBOR.
``Notwithstanding section 804(2), an application for a deposit
facility by a regulated financial institution shall not be denied on
the basis of such institution's compliance with this Act if such
institution in the previous twenty-four months--
``(1) has received a rating of `Outstanding' or
`Satisfactory' from the appropriate Federal financial
supervisory agency in an evaluation of the institution under
section 807 conducted, or
``(2) has been found to be in compliance with section 809
in a regulatory review conducted under section 809(c),
unless such institution's compliance has materially deteriorated since
such evaluation.''.
For more information contact:
John Taylor or Chris Bohner
HN1748@handsnet.org
The National Community Reinvestment Coalition
1875 Connecticut Avenue, Suite 1010
Washington D.C. 20009
Phone: 202-986-7898
FAX: 202-986-7475
This post transferred from the cdb-l mailing list
Kennedy was holding hearings about extending CRA to ALL lenders?
++++++++++++++++Republican Attack on the Community Reinvestment
Act++++++++++++++++++++++++
It didn't take long for the Republican Congress to launch their first
attack on the Community Reinvestment Act (CRA). Representative Bill
McCollum (R-8-FL) has introduced the Community Reinvestment Improvement Act
(H.R. 317), a bill that would substantially gut the CRA. The bill
establishes a "safe harbor" for banks with a "satisfactory" or better CRA
rating (93% of all lenders), exempts lenders under $100 million in assets or
in towns under 25,000, and allows lenders under $500 million in assets to
self certify their CRA performance.
In the coming weeks, the National Community Reinvestment Coalition
(NCRC) will be organizing opposition to the bill. A copy of the bill is
attached to this post.
********
104th CONGRESS
1st Session
H. R. 317
To amend the Community Reinvestment Act of 1977 to reduce onerous
recordkeeping and reporting requirements for regulated financial
institutions, and for other purposes.
__________________________________________________ ___________________
IN THE HOUSE OF REPRESENTATIVES
January 4, 1995
Mr. McCollum introduced the following bill; which was referred to the
Committee on Banking and Financial Services
__________________________________________________ _____________________
A BILL
To amend the Community Reinvestment Act of 1977 to reduce onerous
recordkeeping and reporting requirements for regulated financial
institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Reinvestment Improvement
Act of 1995''.
SEC. 2. MODIFIED EVALUATIONS.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by adding at the end the following new section:
``SEC. 809. MODIFIED EVALUATIONS.
``(a) Scope.--In lieu of being evaluated under section 804 and
receiving a written evaluation under section 807, an institution's
record of meeting the credit needs of its entire community with respect
to any calendar year shall be evaluated pursuant to this section if the
institution--
``(1) has not been found to be in violation of section
701(a) of the Equal Credit Opportunity Act, or any other
provision of such Act, during the five-year period preceding
such calendar year;
``(2) has not received a rating of `needs to improve' or
`substantial noncompliance' from the supervisory agency in the
most recent evaluation of the institution under section 807;
``(3) has not been disqualified from evaluation under this
section by the supervisory agency pursuant to a provision of
this section; and
``(4) has, as of the December 31 preceding the beginning of
such calendar year, total assets of less than $500,000,000.
The dollar amount in this subsection shall be adjusted annually after
December 31, 1994, by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.
``(b) Modified Evaluation.--An institution which is described in
subsection (a) with respect to any calendar year shall, during such
year--
``(1) maintain internal policies to help meet the credit
needs of its local community consistent with the safe and sound
operation of such institution;
``(2) declare in writing to the supervisory agency, at such
time as the agency shall prescribe by regulation, that the
institution--
``(A) is an institution described in subsection
(a); and
``(B) is in compliance with this subsection;
``(3) display any notices as required by the supervisory
agency concerning the institution's compliance with the
requirements of this Act; and
``(4) make available for public inspection the following
information regarding the record of such institution in meeting
the credit needs of its entire community--
``(A) an identification of the community it serves;
``(B) a list of the types of credit offered by the
institution;
``(C) public comments received during such year or
any of the two years immediately preceding such year
regarding the institution's service of the entire
community's credit needs; and
``(D) copies of any declaration submitted under
subparagraph (2).
``(c) Regulatory Evaluation.--
``(1) In general.--The supervisory agency shall conduct an
evaluation of an institution's compliance with this section in
connection with its examination of such institution, or every
two years, whichever is more frequent.
``(2) Notice.--Upon commencing a compliance evaluation
pursuant to the section, the supervisory agency shall provide
public notice stating that it is conducting such evaluation of
the institution.
``(3) Procedure.--In performing periodic evaluations of
institutions pursuant to subsection (c) of this section, the
supervisory agency--
``(A) shall review the institution's existing
business records and shall not require the institution
to produce documentation other than existing business
records, and
``(B) shall review any additional information
provided by the institution or other interested
parties.
``(4) Disqualification.--In addition to any administrative
enforcement action authorized under any other provision of law,
if the supervisory agency determines after an evaluation under
this subsection that the institution is not in compliance with
this section, then the supervisory agency may determine that
the institution shall be disqualified from evaluation under
this section for such period as the agency may determine to be
appropriate.
``(e) Penalties.--In addition to any criminal or civil penalty or
any administrative enforcement action authorized under any other
provision of law, if the supervisory agency finds that an institution
has intentionally submitted false information to the supervisory agency
or otherwise willfully violated the requirements of subsection (b), the
institution shall be disqualified from evaluation under this section
such period, not to exceed ten years, as the agency may determine to be
appropriate.
``(f) Definitions.--
``(1) `Institution' means a regulated financial institution
meeting the requirements of subsection (a).
``(2) `Supervisory agency' means the appropriate Federal
financial supervisory agency of a regulated financial
institution.''.
SEC. 3. EVALUATION EXEMPTION.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by inserting after section 809 (as added by section 2 of this
Act) the following new section:
``SEC. 810. EVALUATION EXEMPTION.
``A regulated financial institution shall not be subject to the
evaluation requirements of this title or any regulations issued under
this title if--
``(1) the main office and each branch of such institution
is located in an incorporated city or town, or an
unincorporated place recognized by the Census Bureau that has a
population of not more than twenty-five thousand persons; and
``(2) the aggregate assets of the institution and any
company which is a depository holding company with respect to
such institution (as defined in section 3(w) of the Federal
Deposit Insurance Act) are less than $100,000,000.
The dollar amount in this section shall be adjusted annually after
December 31, 1995, by the annual percentage increase in the Consumer
Price Index for Urban Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.''.
SEC. 4. SAFE HARBOR.
The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by inserting after section 810 (as added by section 3 of this
Act) the following new section:
``SEC. 811. SAFE HARBOR.
``Notwithstanding section 804(2), an application for a deposit
facility by a regulated financial institution shall not be denied on
the basis of such institution's compliance with this Act if such
institution in the previous twenty-four months--
``(1) has received a rating of `Outstanding' or
`Satisfactory' from the appropriate Federal financial
supervisory agency in an evaluation of the institution under
section 807 conducted, or
``(2) has been found to be in compliance with section 809
in a regulatory review conducted under section 809(c),
unless such institution's compliance has materially deteriorated since
such evaluation.''.
For more information contact:
John Taylor or Chris Bohner
HN1748@handsnet.org
The National Community Reinvestment Coalition
1875 Connecticut Avenue, Suite 1010
Washington D.C. 20009
Phone: 202-986-7898
FAX: 202-986-7475
This post transferred from the cdb-l mailing list