wlmmyers
07-11-1998, 10:26 AM
URGENT: ATTACK ON CRA EXPECTED THIS WEEK AS SENATE TAKES-UP CREDIT UNION
BILL; COMMUNITY GROUPS URGED TO ACT IMMEDIATELY
BACKGROUND: It is just not safe to go on vacation, at least not while
Congress remains in session. The Community Reinvestment Act (CRA) is
expected to come under attack as part of consideration by the full U.S.
Senate of the Credit Union Membership Access Act (HR 1151). The Senate
is expected to take-up HR 1151 as early as this Thursday (7/17).
HR 1151 clarifies federal regulations governing which small businesses
and consumers have the right to belong to credit unions. The bill also
imposes some modest CRA-type requirements on credit unions, which seems
to have provoked Congressional opponents of the reinvestment law. The
bill passed the Senate Banking Committee last May and is similar to a
bill the House passed overwhelmingly in April. It permits federal
credit unions to take in members from different groups as long as each
of those groups does not exceed 3,000 people. Thus, the bill is
intended to partially reverse a Supreme Court ruling handed down earlier
this year which barred employee-based credit unions from recruiting
members from more than a single firm. The credit union lobby is
strongly supporting HR 1151.
The attack on CRA is likely to come in the form of two floor amendments
that will be offered to the credit union bill by Sens. Shelby (R-AL) and
Gramm (R-TX). The Shelby amendment would exempt all banks with assets
under $250 million from CRA coverage (an estimated 85% of the 9024 banks
currently chartered). In an effort to pickup additional votes, Shelby
is apparently considering dropping the exemption threshold in his
amendment to all banks under $100 million in assets (64% of all banks).
Currently, all banks are covered by CRA regardless of their asset size.
The Gramm amendment would remove the provisions in HR 1151 intended to
ensure that credit unions serve members of modest means (including low
and moderate income households) within their field of membership.
ACTION NEEDED: Adoption of these amendments would represent a serious
blow to CRA. Should the Shelby amendment pass, the vast majority of
banks would be free to redline or otherwise shun older urban and credit
starved rural communities. The vote on these amendments is expected to
be very tight. The small bank lobby is actively supporting the two
amendments. Your active help is needed to counteract this threat.
Special efforts are needed by those groups located in small population
states where the small banks are especially strong.
We urge you to weigh-in quickly with your two senators in Washington.
You can reach them by calling the Capitol Hill switchboard at
202-224-3121.
MATERIAL AVAILABLE: You can access a fact sheet containing talking
points in opposition to the Shelby and Gramm amendments by dialing CCC's
fax-on-demand at 703/716-7349 and requesting document # 1151. Please
send us copies of your faxes, as well as any feedback you receive as a
result of your contacts.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein at CCC's Neighborhood
Revitalization Project, either by calling 202-342-0567 or faxing to
202-333-5462.
If you would like to be added to or removed from the policy alert
distribution list, please send a message to ranghellil@commchange.org
with complete contact information (name, organization, phone, fax,
email, address).
This post transferred from the cdb-l mailing list
BILL; COMMUNITY GROUPS URGED TO ACT IMMEDIATELY
BACKGROUND: It is just not safe to go on vacation, at least not while
Congress remains in session. The Community Reinvestment Act (CRA) is
expected to come under attack as part of consideration by the full U.S.
Senate of the Credit Union Membership Access Act (HR 1151). The Senate
is expected to take-up HR 1151 as early as this Thursday (7/17).
HR 1151 clarifies federal regulations governing which small businesses
and consumers have the right to belong to credit unions. The bill also
imposes some modest CRA-type requirements on credit unions, which seems
to have provoked Congressional opponents of the reinvestment law. The
bill passed the Senate Banking Committee last May and is similar to a
bill the House passed overwhelmingly in April. It permits federal
credit unions to take in members from different groups as long as each
of those groups does not exceed 3,000 people. Thus, the bill is
intended to partially reverse a Supreme Court ruling handed down earlier
this year which barred employee-based credit unions from recruiting
members from more than a single firm. The credit union lobby is
strongly supporting HR 1151.
The attack on CRA is likely to come in the form of two floor amendments
that will be offered to the credit union bill by Sens. Shelby (R-AL) and
Gramm (R-TX). The Shelby amendment would exempt all banks with assets
under $250 million from CRA coverage (an estimated 85% of the 9024 banks
currently chartered). In an effort to pickup additional votes, Shelby
is apparently considering dropping the exemption threshold in his
amendment to all banks under $100 million in assets (64% of all banks).
Currently, all banks are covered by CRA regardless of their asset size.
The Gramm amendment would remove the provisions in HR 1151 intended to
ensure that credit unions serve members of modest means (including low
and moderate income households) within their field of membership.
ACTION NEEDED: Adoption of these amendments would represent a serious
blow to CRA. Should the Shelby amendment pass, the vast majority of
banks would be free to redline or otherwise shun older urban and credit
starved rural communities. The vote on these amendments is expected to
be very tight. The small bank lobby is actively supporting the two
amendments. Your active help is needed to counteract this threat.
Special efforts are needed by those groups located in small population
states where the small banks are especially strong.
We urge you to weigh-in quickly with your two senators in Washington.
You can reach them by calling the Capitol Hill switchboard at
202-224-3121.
MATERIAL AVAILABLE: You can access a fact sheet containing talking
points in opposition to the Shelby and Gramm amendments by dialing CCC's
fax-on-demand at 703/716-7349 and requesting document # 1151. Please
send us copies of your faxes, as well as any feedback you receive as a
result of your contacts.
FOR FURTHER INFORMATION CONTACT: Allen Fishbein at CCC's Neighborhood
Revitalization Project, either by calling 202-342-0567 or faxing to
202-333-5462.
If you would like to be added to or removed from the policy alert
distribution list, please send a message to ranghellil@commchange.org
with complete contact information (name, organization, phone, fax,
email, address).
This post transferred from the cdb-l mailing list