hn0186 at handsnet.org
06-12-1995, 05:56 PM
Date: June 12, 1995 1:02 pm PDT Item: R009Sss
From: HN1415 Center for Community Change
To: $HCDLEGWKLY Hsng Legislative Weekly Update
Subj: Policy Alert 21 (Part 1)
Policy Alert #21 (Part 1) Center for Community Change
June 12, 1995
Welfare Reform May Reach Senate Floor; Budget Resolution Conference Set to
Begin; House HUD Appropriations Subcommittee Set to Act; House Panel Set to
Vote This Week on Axing CRA; Vote to Revamp Home Loan Bank System Set for
Late June.
CRA UPDATE
Congress Poised to Axe CRA
In the next few weeks both the House and Senate Banking Committees will
vote on measures aimed at weakening the Community Reinvestment Act (CRA)
and seriously harming a host of other consumer protection and fair lending
laws. The prime vehicle for this attack in the House is H.R. 1362,
introduced by Rep. Bereuter (R-NE). In the Senate, it is S. 650,
introduced by Sens. Shelby (R-AL) and Mack (R-FL).
House Subcommittee Vote Scheduled for June 15
The Financial Institutions Subcommittee of the House Banking Committee is
slated to take action this Wed. & Thurs. (6/14-15) on H.R. 1362, "the
Financial Institutions Regulatory Relief Act of 1995." The full House
Banking Committee is likely to act on the bill next week, on June 20 or 21.
H.R. 1362 guts CRA in three key ways:
1) It exempts small banks. Banks with less than $100 million in assets
located in communities of less than 30,000 in population (about 38% of all
banks) would no longer be covered by the law. Other banks with up to $250
million in assets would be allowed to self-certify their compliance with
CRA (about 50% of all banks).
2) It creates the ultimate "safe harbor," protecting banks from CRA
challenges. Under the bill, banks with at least a "satisfactory" CRA
rating (now about 96% of all banks) would no longer need to file
applications and get advance approval from federal regulators to expand.
Thus, they would no longer fear community group challenges.
3) It prevents federal regulators from collecting and publishing data on
banks' small business lending patterns (required for large banks under the
new CRA regulations).
Further, the Bereuter bill reduces or eliminates other data collection and
reporting requirements that are critical to effective enforcement of CRA.
The bill raises the threshold for reporting under the Home Mortgage
Disclosure Act (HMDA) from banks with $10 million in assets to those with
$50 million, thus exempting some 3300 institutions that currently report.
It also wipes out the current requirement that banks report on their small
business lending as part of their quarterly financial reports.
Prospects in the House look pretty grim right now. The Republicans in the
Subcommittee and the full Committee are lining up as a block in support of
the Bereuter bill. The best hope for CRA is for the vote to split along
party lines, with all of the Democrats opposing it. This would pave the
way for the Senate Democrats to take a hard line (see below), and for the
President to veto the bill, if necessary. House Democrats are talking
about vigorously opposing H.R. 1362, although there is worry that some may
stray and join the Republicans to support the bill.
Key Democrats on the Subcommittee and full Committee that need to be shored
up in opposition to the anti-CRA provisions in H.R. 1362 include: Orton
(D-UT), Kanjorski (D-PA), LaFalce (D-NY), Bentsen (D-TX), and Barrett
(D-WI). However, local groups should not assume their members oppose these
provisions unless they have heard directly from them on this issue.
Action Needed in the House: Time is extremely short, so immediate action is
needed:
1) If you are represented by a member of the Subcommittee or the full
Committee, call and write to urge their vigorous opposition to the anti-CRA
provisions in H.R. 1362, and if the anti-CRA provisions are not removed,
their opposition to the entire bill.
2) If you are not represented by a member of the Committee, contact your
own member and ask them to weigh with the Committee. Also, weigh in with
the Committee yourself.
Please send all copies of your correspondence to Rep. Roukema, the
Subcommittee Chair, Rep. Vento (D-MN) (the ranking Subcommittee Democrat),
Rep. Leach, the full Committee Chair, and to Rep. Gonzalez (D-TX), the full
Committee ranking Democrat. ONE THING MORE: KINDLY SEND US A COPY AS
WELL.
Senate Banking Committee Likely to Vote on CRA in June
The Senate Banking Committee is moving toward action on the Shelby-Mack
regulatory relief bill, S. 650. The bill's 3 types of anti-CRA provisions
are virtually identical to those in the Bereuter bill (described above).
The one exception is that S. 650 does not distinguish between banks under
$100 million in assets and those under $250 million. It provides an
outright exemption from CRA for all banks under $250 million in assets.
The Committee held hearings on the bill last month. Republican and
Democratic staff members in the Senate have since begun discussions on the
various provisions of the bill. This is the first step towards an actual
vote in the Committee. If CRA is going to survive this vote, every single
Democrat will have to vote against these provisions, as well as one or two
Republicans. At the moment, things are not looking good. Too many
Democrats have yet to actively weigh in on the bill. This is what we know
about where the Committee members stand:
Sarbanes (D-MD) - the ranking Democrat on the Committee, has been very
strong in his support of CRA. He was present all through the hearings last
month, asking very pointed and helpful questions and clearly opposing the
anti-CRA provisions in the bill.
Moseley-Braun (D-IL) - the only other Democrat on the Committee to firmly
state her opposition to the anti-CRA provisions of S. 650, is threatening a
filibuster on the Senate floor if necessary.
Bryan (D-NV) - the only Dem to co-sponsor the bill, he made some general
pro-CRA comments at the hearings, and said early on that he may seek
removal or modification of the anti-CRA sections of the bill, but he has
not taken any steps in that direction.
Kerry (D-MA) - has made no public statements for CRA or against the bill,
did not show at the hearings at all, has no staff person following the
bill, and has avoided meeting with groups in Mass. to discuss the bill
(although he has apparently met with bankers).
Boxer (D-CA) - like Kerry, did not attend the hearings, and has not come
out publicly in support of CRA or against the bill.
Murray (D-WA) - was not at the hearings, has not spoken out publicly except
to make the most general statements in support of CRA. Her staff person
claims only to have heard from bankers who support S. 650, and not to have
heard from anyone in Washington State who has had any problems getting
access to credit.
Dodd (D-CT) - has been completely silent and completely absent on this
issue.
Among the Republicans:
Bond (R-MO) - has actually said that he may vote against the anti-CRA
sections in the bill, but seems supportive of the streamlining provisions.
D'Amato (R-NY) - as Committee Chairman, his position will be critical. He
has said he supports the anti-CRA provisions in the bill, but has kept a
pretty low profile. He has been ducking groups in New York, who have
sought a meeting on this issue.
Action Needed in the Senate: It is critical for groups to get as many
calls and letters as possible in to the members of the Banking Committee,
opposing the three parts of S. 650 outlined above. Calls and letters
should come not only from community groups, but also from mayors, city
council members, other elected officials, small business groups, real
estate professionals, church and labor organizations -- anyone you can
think of who has a vested interest in seeing CRA survive. Copies of any
letters should be sent to Sen. Sarbanes, Sen. D'Amato, and us at CCC.
Materials Available: We have a sample letter available that groups can use
as a model for either the House or the Senate. Call Sheree Stansbury at
(202)342-0567 and she will fax it to you.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein or Debby Goldberg:
202-342-0567 (HandsNet: HN0281 or Internet: HN0281@handsnet.org).
BUDGET UPDATE
Background: The House and Senate have begun to discuss differences between
the budget resolutions passed by the two chambers. A key focus has been
the different tax cut provisions in the two bills. Negotiations between
the conferees are expected to last through this week, and possibly last
significantly longer. Once the House and Senate have passed a conference
report on the budget resolution (probably in the third week of June),
Committees with jurisdiction over mandatory programs will be required to
report back legislation that achieves savings required by the resolution
(probably by mid- to late July). Those bills are then bundled together by
the Budget Committees into reconciliation bills and sent to the House and
Senate floors. Action on the budget reconciliation bill is expected to
last well into September.
Key Housing Issues: There are a variety of significant differences between
the House and Senate resolutions with respect to housing programs (see
Policy Alert #20). While the recommendations in the budget resolution are
not binding on the Appropriations Committee, they are very influential.
Action Needed: Advocates represented by a member of the House or Senate
Budget Committee should ask their representative to support the Senate bill
with respect to housing programs.
FOR FURTHER INFORMATION CONTACT: Deepak Bhargava at (202) 342-0567
(HandsNet: HN5013 or Internet: HN5013@handsnet.org).
APPROPRIATIONS UPDATE
Background:. The House Appropriations Committee will formally adopt its
602B' allocation today, which divides money among its 13 subcommittees.
The Labor-HHS and VA-HUD Subcommittee are expected to take especially deep
cuts. Budget authority for the VA-HUD Subcommittee would decrease by 8.717
billion in FY96. Rep. Jerry Lewis (R), Chair of the VA-HUD Subcommittee,
has warned that this would require very deep cuts to HUD programs. His
Subcommittee has scheduled a mark up for June 22nd. The Senate
HUD/VA/Independent Agencies Subcommittee is set to act after the July 4th
Congressional recess.
Action Needed: It is critical that advocates weigh in with members of the
House and Senate Appropriations Committees, particularly members of the
Subcommittees, in the next couple of weeks. Key points to stress include:
(1) opposition to deep cuts to HUD's budget; (2) the importance of
continued funding to preserve the existing stock of affordable housing for
low- and very low-income families, including maintaining funding for public
housing, LIHPRA, and project-based Section 8.
FOR FURTHER INFORMATION CONTACT: Deepak Bhargava at (202) 342-0567.
Sent: June 12, 1995 3:04 pm PDT Item: R009TQC
This post transferred from the cdb-l mailing list
From: HN1415 Center for Community Change
To: $HCDLEGWKLY Hsng Legislative Weekly Update
Subj: Policy Alert 21 (Part 1)
Policy Alert #21 (Part 1) Center for Community Change
June 12, 1995
Welfare Reform May Reach Senate Floor; Budget Resolution Conference Set to
Begin; House HUD Appropriations Subcommittee Set to Act; House Panel Set to
Vote This Week on Axing CRA; Vote to Revamp Home Loan Bank System Set for
Late June.
CRA UPDATE
Congress Poised to Axe CRA
In the next few weeks both the House and Senate Banking Committees will
vote on measures aimed at weakening the Community Reinvestment Act (CRA)
and seriously harming a host of other consumer protection and fair lending
laws. The prime vehicle for this attack in the House is H.R. 1362,
introduced by Rep. Bereuter (R-NE). In the Senate, it is S. 650,
introduced by Sens. Shelby (R-AL) and Mack (R-FL).
House Subcommittee Vote Scheduled for June 15
The Financial Institutions Subcommittee of the House Banking Committee is
slated to take action this Wed. & Thurs. (6/14-15) on H.R. 1362, "the
Financial Institutions Regulatory Relief Act of 1995." The full House
Banking Committee is likely to act on the bill next week, on June 20 or 21.
H.R. 1362 guts CRA in three key ways:
1) It exempts small banks. Banks with less than $100 million in assets
located in communities of less than 30,000 in population (about 38% of all
banks) would no longer be covered by the law. Other banks with up to $250
million in assets would be allowed to self-certify their compliance with
CRA (about 50% of all banks).
2) It creates the ultimate "safe harbor," protecting banks from CRA
challenges. Under the bill, banks with at least a "satisfactory" CRA
rating (now about 96% of all banks) would no longer need to file
applications and get advance approval from federal regulators to expand.
Thus, they would no longer fear community group challenges.
3) It prevents federal regulators from collecting and publishing data on
banks' small business lending patterns (required for large banks under the
new CRA regulations).
Further, the Bereuter bill reduces or eliminates other data collection and
reporting requirements that are critical to effective enforcement of CRA.
The bill raises the threshold for reporting under the Home Mortgage
Disclosure Act (HMDA) from banks with $10 million in assets to those with
$50 million, thus exempting some 3300 institutions that currently report.
It also wipes out the current requirement that banks report on their small
business lending as part of their quarterly financial reports.
Prospects in the House look pretty grim right now. The Republicans in the
Subcommittee and the full Committee are lining up as a block in support of
the Bereuter bill. The best hope for CRA is for the vote to split along
party lines, with all of the Democrats opposing it. This would pave the
way for the Senate Democrats to take a hard line (see below), and for the
President to veto the bill, if necessary. House Democrats are talking
about vigorously opposing H.R. 1362, although there is worry that some may
stray and join the Republicans to support the bill.
Key Democrats on the Subcommittee and full Committee that need to be shored
up in opposition to the anti-CRA provisions in H.R. 1362 include: Orton
(D-UT), Kanjorski (D-PA), LaFalce (D-NY), Bentsen (D-TX), and Barrett
(D-WI). However, local groups should not assume their members oppose these
provisions unless they have heard directly from them on this issue.
Action Needed in the House: Time is extremely short, so immediate action is
needed:
1) If you are represented by a member of the Subcommittee or the full
Committee, call and write to urge their vigorous opposition to the anti-CRA
provisions in H.R. 1362, and if the anti-CRA provisions are not removed,
their opposition to the entire bill.
2) If you are not represented by a member of the Committee, contact your
own member and ask them to weigh with the Committee. Also, weigh in with
the Committee yourself.
Please send all copies of your correspondence to Rep. Roukema, the
Subcommittee Chair, Rep. Vento (D-MN) (the ranking Subcommittee Democrat),
Rep. Leach, the full Committee Chair, and to Rep. Gonzalez (D-TX), the full
Committee ranking Democrat. ONE THING MORE: KINDLY SEND US A COPY AS
WELL.
Senate Banking Committee Likely to Vote on CRA in June
The Senate Banking Committee is moving toward action on the Shelby-Mack
regulatory relief bill, S. 650. The bill's 3 types of anti-CRA provisions
are virtually identical to those in the Bereuter bill (described above).
The one exception is that S. 650 does not distinguish between banks under
$100 million in assets and those under $250 million. It provides an
outright exemption from CRA for all banks under $250 million in assets.
The Committee held hearings on the bill last month. Republican and
Democratic staff members in the Senate have since begun discussions on the
various provisions of the bill. This is the first step towards an actual
vote in the Committee. If CRA is going to survive this vote, every single
Democrat will have to vote against these provisions, as well as one or two
Republicans. At the moment, things are not looking good. Too many
Democrats have yet to actively weigh in on the bill. This is what we know
about where the Committee members stand:
Sarbanes (D-MD) - the ranking Democrat on the Committee, has been very
strong in his support of CRA. He was present all through the hearings last
month, asking very pointed and helpful questions and clearly opposing the
anti-CRA provisions in the bill.
Moseley-Braun (D-IL) - the only other Democrat on the Committee to firmly
state her opposition to the anti-CRA provisions of S. 650, is threatening a
filibuster on the Senate floor if necessary.
Bryan (D-NV) - the only Dem to co-sponsor the bill, he made some general
pro-CRA comments at the hearings, and said early on that he may seek
removal or modification of the anti-CRA sections of the bill, but he has
not taken any steps in that direction.
Kerry (D-MA) - has made no public statements for CRA or against the bill,
did not show at the hearings at all, has no staff person following the
bill, and has avoided meeting with groups in Mass. to discuss the bill
(although he has apparently met with bankers).
Boxer (D-CA) - like Kerry, did not attend the hearings, and has not come
out publicly in support of CRA or against the bill.
Murray (D-WA) - was not at the hearings, has not spoken out publicly except
to make the most general statements in support of CRA. Her staff person
claims only to have heard from bankers who support S. 650, and not to have
heard from anyone in Washington State who has had any problems getting
access to credit.
Dodd (D-CT) - has been completely silent and completely absent on this
issue.
Among the Republicans:
Bond (R-MO) - has actually said that he may vote against the anti-CRA
sections in the bill, but seems supportive of the streamlining provisions.
D'Amato (R-NY) - as Committee Chairman, his position will be critical. He
has said he supports the anti-CRA provisions in the bill, but has kept a
pretty low profile. He has been ducking groups in New York, who have
sought a meeting on this issue.
Action Needed in the Senate: It is critical for groups to get as many
calls and letters as possible in to the members of the Banking Committee,
opposing the three parts of S. 650 outlined above. Calls and letters
should come not only from community groups, but also from mayors, city
council members, other elected officials, small business groups, real
estate professionals, church and labor organizations -- anyone you can
think of who has a vested interest in seeing CRA survive. Copies of any
letters should be sent to Sen. Sarbanes, Sen. D'Amato, and us at CCC.
Materials Available: We have a sample letter available that groups can use
as a model for either the House or the Senate. Call Sheree Stansbury at
(202)342-0567 and she will fax it to you.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein or Debby Goldberg:
202-342-0567 (HandsNet: HN0281 or Internet: HN0281@handsnet.org).
BUDGET UPDATE
Background: The House and Senate have begun to discuss differences between
the budget resolutions passed by the two chambers. A key focus has been
the different tax cut provisions in the two bills. Negotiations between
the conferees are expected to last through this week, and possibly last
significantly longer. Once the House and Senate have passed a conference
report on the budget resolution (probably in the third week of June),
Committees with jurisdiction over mandatory programs will be required to
report back legislation that achieves savings required by the resolution
(probably by mid- to late July). Those bills are then bundled together by
the Budget Committees into reconciliation bills and sent to the House and
Senate floors. Action on the budget reconciliation bill is expected to
last well into September.
Key Housing Issues: There are a variety of significant differences between
the House and Senate resolutions with respect to housing programs (see
Policy Alert #20). While the recommendations in the budget resolution are
not binding on the Appropriations Committee, they are very influential.
Action Needed: Advocates represented by a member of the House or Senate
Budget Committee should ask their representative to support the Senate bill
with respect to housing programs.
FOR FURTHER INFORMATION CONTACT: Deepak Bhargava at (202) 342-0567
(HandsNet: HN5013 or Internet: HN5013@handsnet.org).
APPROPRIATIONS UPDATE
Background:. The House Appropriations Committee will formally adopt its
602B' allocation today, which divides money among its 13 subcommittees.
The Labor-HHS and VA-HUD Subcommittee are expected to take especially deep
cuts. Budget authority for the VA-HUD Subcommittee would decrease by 8.717
billion in FY96. Rep. Jerry Lewis (R), Chair of the VA-HUD Subcommittee,
has warned that this would require very deep cuts to HUD programs. His
Subcommittee has scheduled a mark up for June 22nd. The Senate
HUD/VA/Independent Agencies Subcommittee is set to act after the July 4th
Congressional recess.
Action Needed: It is critical that advocates weigh in with members of the
House and Senate Appropriations Committees, particularly members of the
Subcommittees, in the next couple of weeks. Key points to stress include:
(1) opposition to deep cuts to HUD's budget; (2) the importance of
continued funding to preserve the existing stock of affordable housing for
low- and very low-income families, including maintaining funding for public
housing, LIHPRA, and project-based Section 8.
FOR FURTHER INFORMATION CONTACT: Deepak Bhargava at (202) 342-0567.
Sent: June 12, 1995 3:04 pm PDT Item: R009TQC
This post transferred from the cdb-l mailing list