THE
COMMUNITY REINVESTMENT ACT – MAKING AMERICA STRONGER
Mr.
Speaker: Today, the Leadership Conference on Civil Rights sent a clear
and loud message to Congress – stop the attack on the Community Reinvestment
Act (CRA). Enough is enough.
I
wholeheartedly agree.
The
Leadership Conference on Civil Rights is an impressive coalition of more
than 180 national organizations, representing people of color, women, children,
labor unions, persons with disabilities, older Americans, major religious
groups, gays and lesbians and civil liberties and human rights groups.
In a collective voice, the Leadership Conference on Civil Rights, once
more, made it known to those who stubbornly want to believe otherwise,
that the Community Reinvestment Act is a success.
Since
its enactment in 1977, financial institutions have made more than $1 trillion
in loans in low-income communities. More than ninety percent of these
loans came in the past seven years. As a result, neighborhoods have
prospered, communities have flourished, small businesses have succeeded
and the quality of life for many has improved.
Today's
Washington Post wrote, "…Since 1977 federally insured banks have been subject
to the Community Reinvestment Act, requiring them to seek business opportunities
in poor areas as well as middle-class and wealthy neighborhoods. The law,
a response originally to clear evidence of bias in lending, has worked
well. It doesn't force banks to make unprofitable loans, but it encourages
them to look beyond traditional customers, and it's had a beneficial effect
on home ownership and small-business lending."
Many
banks share this view. John B. McCoy, President and CEO of one of
the largest and profitable banks in the nation, Bank One, testified before
the House Banking Committee on February 10 that his bank is "working effectively
and successfully with CRA."
However,
there are those in Congress who are attempting to undermine the success
of the Community Reinvestment Act, either by refusing to expand it or calling
for its outright end.
I
hope that my colleagues were listening today. The Community Reinvestment
Act is a wise investment with a sure return. I applaud the efforts
the Leadership Conference on Civil Rights and join in their crusade to
protect and expand the Community Reinvestment Act.
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