[Congressional Record Volume 140, Number 13 (Thursday, February 10, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 10, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      FLEET BANK'S INCITY PROGRAM

  Mr. PELL. Mr. President, I wish to note an event which occurred 
earlier today here in the Capitol; namely, the unveiling of a 
comprehensive and precedent setting new lending program by Fleet Bank, 
an institution which is headquartered in my home State of Rhode Island. 
This program, called Fleet INCITY, will provide over $8 billion in 
loans and credit assistance to low- to moderate-income homeowners and 
small businesses located in distressed inner cities of the northeast.
  This extraordinary commitment of money and resources to these 
underserved communities will mean that those who are too often left 
out, chiefly minorities and the economically disadvantaged, will be 
able to secure the credit and opportunity necessary to establish an 
independent and viable existence for themselves. It means that Fleet 
Bank is committing itself to the futures of revitalizing the inner 
cities of communities in Providence and Pawtucket. It means that 
homeowners in Central Falls, Woonsocket, Westerly, and Newport that had 
been locked out of the home mortgage market will not have access to it. 
And with this community development and individual self-improvement 
will come the economic growth and rising self-esteem which is sorely 
needed as we try to find the answer to reversing the trend of decay and 
despair in our inner cities.
  Mr. President, I am pleased that Fleet Bank is taking the initiative 
in this matter and alerting the private sector banking community of its 
responsibilities as well as its opportunities in the area of minority 
and low-income lending. I hope that this program will become a model 
for other banks and that there will be a blossoming of new private 
initiatives addressing this area. Indeed, the more that can be done at 
the private level, the less that we will have to do in the public 
sector. Again, I commend Fleet Bank, and in particular its chairman and 
chief executive officer Terry Murray, for undertaking this effort and 
expect that when fully implemented, its success will equal its promise.
  Mr. President, I wish to submit for the Record the remarks of Fleet 
Bank chairman and CEO Terry Murray given at this morning's announcement 
of this program and also a chart detailing the components of the INCITY 
program.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

         Remarks by Terrence Murray on the Fleet INCITY Program


                      ii. announcement of program

       I am extremely pleased and genuinely excited to be here 
     this morning. For more than a year, many of us at Fleet have 
     closely examined the important banking industry issues of 
     community investment and small business lending. As a result, 
     we have determined that it was appropriate to develop the 
     program I have the pleasure of announcing today.
       It is an unprecedented commitment; it is broad in scope; 
     and we believe its potential impact is enormous.
       We are calling the program Fleet INCITY. It's a company-
     wide commitment, created by Fleet, to make it easier for low- 
     and moderate-income people, and for minority- and women-owned 
     small businesses, to access Fleet's products and services, 
     especially loans.
       I am looking forward to meeting later today with Treasury 
     Secretary Lloyd Bentsen to brief him personally on Fleet 
     INCITY. As well as discuss a number of other banking issues.
       Over the next three years. Fleet will commit more than $8 
     billion to affordable housing and other initiatives, 
     including $800 million in wholly new projects. The program is 
     designed to:
       Improve access to credit for those segments of the 
     community that traditionally have had the hardest time 
     getting credit.
       Be the most comprehensive community lending commitment ever 
     made by a U.S. bank.
       Amount to more than $2.6 billion a year over three years.
       Why are we making such a major commitment?
       Fleet intends to be nothing less than a force for positive 
     change in our society. We believe such programs as Fleet 
     INCITY have obvious benefits for the economy as a whole.
       We believe Fleet INCITY responds to the challenges that the 
     Clinton administration has posed to America's banks to find 
     ways to better meet the credit needs of Americans at every 
     income level.
       We believe Fleet INCITY, by making credit available to 
     families who have had the toughest time getting credit, will 
     do more for those families than anything else we could offer 
     them.
       Finally, we believe that a program such as Fleet INCITY is 
     good business. America is becoming more culturally diverse. 
     Such programs as this--programs that reach out and embrace 
     that diversity--are as essential to our future as to the 
     future of this country.
       We recognize that this program will not solve all problems 
     faced by the disadvantaged overnight. However, we do believe 
     it will be a force for positive change throughout our 
     markets.
       Unfortunately, many borrowers today who have the ability to 
     repay their loans can't qualify for even simple mortgages 
     because the guidelines are too rigid. Our program is designed 
     to cut through some of this red tape.
       We believe Fleet INCITY also captures the true spirit of 
     the Community Reinvestment Act--to ensure credit access for 
     all qualified borrowers.


                              iv. summary

       We believe that all banks need to think seriously about 
     community investment and develop programs similar to Fleet 
     INCITY. We see our program as a model for our industry. We 
     believe it responds appropriately to the wishes of the 
     Clinton administration, that it is good business, and that it 
     will provide valuable benefits to society.
                                  ____


               [Attachment to Fleet INCITY News Release]

                        Fleet INCITY Components


  I. Fleet Recommitment to Affordable Housing and New Commitments to 
    Products and Services for Low-Moderate Income Customers ($7.685 
                                Billion)

       Fleet will more aggressively market its products--
     mortgages, consumer loans and other products--and will make 
     available more flexible underwriting requirements to meet the 
     needs of low- and moderate-income families and individuals. 
     Over three years, the government-sponsored affordable housing 
     component, which includes FHA mortgages and other government-
     sponsored affordable housing initiatives, is projected to 
     total more than $7 billion, consistent with Fleet's current 
     volume ($2.9 billion in 1993).
       The Fleet Affordable Housing Program and Fleet/UNAC 
     Mortgage Program will total $315 million and $140 million, 
     respectively, over three years, while the Fleet Consumer Loan 
     component is expected to reach $225 million over the same 
     period.
       Fleet's residential mortgages (Fleet Affordable Housing 
     Program) will be offered with guidelines that provide greater 
     home ownership opportunities to low-moderate income borrowers 
     who are not eligible for traditional mortgage products or 
     those offered by federal, state or local government agencies. 
     The guidelines are modeled after the Federal National 
     Mortgage Association's highly successful Community Homebuyers 
     Program, with additional flexibility based on recommendations 
     solicited from state housing agencies and community groups.
       The Fleet Consumer Loan component is an outreach effort 
     intended to meet the credit needs of consumers in New England 
     and New York, and it includes a ``closer look'' program on 
     home equity and instalment loans.
       Consumers who are interested in any of Fleet's products may 
     access them by visiting or calling any Fleet banking office, 
     or by calling 1-800-CALL-FLEET (1-800-225-5353).
       The Fleet/UNAC Mortgage Program will total up to $140 
     million over three to five years. Mortgages originated under 
     this program will be to low-moderate income borrowers, as 
     well as borrowers locating in low-moderate income 
     communities. Loans will be secured by first mortgages on 
     owner-occupied one- to four-family residences, condominiums 
     or co-ops. Loans will be made for home purchases, as well as 
     purchases that include rehabilitation, or to refinance or 
     consolidate existing debt on qualified real estate.
       UNAC will administer the program from its Boston office and 
     satellite offices in the several metropolitan areas included 
     in the program. UNAC also will provide such client services 
     as community outreach to churches, unions and other 
     community-based organizations; homebuyer workshops; 
     prequalification of borrowers; housing search assistance; 
     counseling throughout the mortgage process; rehab and closing 
     assistance; post-ownership assistance, and several other 
     services.
       Consumers who would like to access the Fleet/UNAC Mortgage 
     Program may do so by contacting UNAC in Boston at 1-800-967-
     4275.


ii. Economic Revitalization, small and minority-owned business lending 
                             ($315 Million)

       Fleet is filing an application with the Federal Reserve 
     Board to establish, and will fund, a new, $15-million Fleet 
     Community Development Corp. (CDC) to address the needs of 
     small businesses and economic development projects, both 
     urban and rural, with equity investments and low-moderate 
     income loans. It represents one of the largest initial 
     capital investments ever made to a CDC by a bank holding 
     company. A wholly owned, nationally operated subsidiary of 
     Fleet Financial Group, it will operate primarily in the six 
     states in which Fleet has banking operations (New York, 
     Connecticut, Massachusetts, Rhode Island, Maine and New 
     Hampshire). The process of applying for and establishing 
     the Fleet CDC is expected to take from three to six 
     months.
       Among other activities, the new Fleet CDC will provide 
     support to small business enterprises by offering financial 
     assistance in the form of low-interest loans, interest-free 
     loans and equity investments to those businesses that often 
     encounter the most difficulty in securing credit from banking 
     institutions by traditional means. After it is approved and 
     established, announcements in local media will inform 
     prospective applicants how to apply to the Fleet CDC for 
     grants and loans, and that further information will be 
     available from local community development officers at 
     Fleet's banks.
       An additional $545,000, over three years, will be earmarked 
     for a new small business initiative through which Fleet will 
     create and operate the Fleet Community Development Advisory 
     Board. The board will serve as a collaborative ``brain 
     trust'' effort between Fleet bankers and community leaders to 
     address significant community development issues, such as 
     exploring and developing creative methods to make credit and 
     other financial services available and more readily 
     accessible. Prominent national and regional leaders with 
     expertise in small business and economic development 
     currently are being considered for advisory board membership. 
     Fleet expects to announce the composition of the advisory 
     board on or about May 1, 1994.
       In addition, Fleet will continue to enhance its current 
     $210 million Community Loan Program by an additional $90 
     million over the next three years to further develop its 
     small business microloan program. The microloan program will 
     make loans for $10,000 to $500,000 to small businesses, 
     concentrating on minority- and women-owned businesses, and to 
     businesses located in low-moderate income areas.
       Fleet's existing Community Loan Program is designed to help 
     stabilize and revitalize low- to moderate-income and/or 
     distressed communities. It offers Fleet's broad range of 
     business loans: loans to nonprofits involved in community 
     development activities; agricultural loans; government 
     guaranteed and government participation loan; loans to 
     community nonprofit health car organizations, religious 
     organizations and nonprofit educational institutions; and 
     loans to finance projects designed primarily to promote 
     community welfare, such as economic rehabilitation and 
     development of low-income areas by providing housing, 
     services and jobs for residents.
       Small business owners interested in obtaining information 
     about or applying for Fleet community loans or the Fleet 
     microloan program, may do so by visiting or calling their 
     local Fleet small business or community bank lender, or by 
     calling 1-800-CALL-FLEET (1-800-225-5353).


                       iii. community initiatives

       Fleet will continue to support programs dedicated to the 
     long-term growth and stability of the communities it serves, 
     including education and diversity initiatives.
       Fleet also will continue to support and expand its consumer 
     credit education efforts, with emphasis on home ownership and 
     personal finance. Furthermore, Fleet will continue to focus 
     charitable giving, through an existing program known as the 
     Fleet Economic Initiative, to assist nonprofit organizations 
     throughout the Northeast with long-term community 
     development. This effort, which is funded through the Fleet 
     Charitable Trust, will give major consideration to nationally 
     known nonprofit community development organizations.
       In addition to charitable giving and its diversity program 
     (described earlier), Fleet will expand corporatewide its 
     existing college scholarship program for financially eligible 
     minority students, Fleet scholars, which also is funded by 
     the Fleet Charitable Trust. Operating successfully at Fleet's 
     Rhode Island bank since 1971, Fleet Scholars has awarded more 
     than $50,000 in college scholarship funding to minority 
     students. The program also provides the students with summer 
     internships at the bank.
       Guidance counselors at the high school level who are 
     interested in further information about the Fleet Scholars 
     program may obtain it by contacting the charitable giving 
     coordinator at the local Fleet subsidiary.

                          ____________________