[Congressional Record Volume 145, Number 82 (Thursday, June 10, 1999)]
[Extensions of Remarks]
[Page E1209]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       COMMUNITY REINVESTMENT ACT

                                 ______
                                 

                        HON. PATRICK J. KENNEDY

                            of rhode island

                    in the house of representatives

                        Thursday, June 10, 1999

  Mr. KENNEDY of Rhode Island. Mr. Speaker, I'd like to address an 
issue of great importance to me and to many members of the community I 
represent. Fair and equal access to capital and credit should be a 
fundamental right, yet for too long it has been a privilege based on 
race or economic class. The dream of owning your own home or business 
slips away when financial institutions discriminate against 
hardworking, creditworthy Americans.
  Fortunately, blatant discrimination in the lending industry is in 
decline, home ownership and small business opportunities are on the 
rise and we can attribute much of this progress to the Community 
Reinvestment Act (CRA). CRA rates federal banking agencies on how they 
meet the credit and capital needs of all the communities in which they 
are chartered and from which they take deposits. Community 
organizations, elected and religious leaders, and ordinary citizens 
have a right to offer their opinions regarding the CRA performance of 
lenders during CRA exams or mergers of CRA. Additionally, CRA has 
leveraged a tremendous amount of reinvestment for our nation's inner 
cities and rural areas. For example, in 1997, low- and moderate-income 
borrowers received 28 percent of the nation's mortgage loans--up 
dramatically from 18 percent in 1990. According to the National 
Community Reinvestment Coalition, banks have made over $1 trillion in 
commitments to CRA-related loans and investments since the law was 
passed in 1977. In Rhode Island, CRA has revitalized cities throughout 
the state. From Constitution Hill in Woonsocket to the West End of 
Providence to Newport, community based housing and economic development 
activities are taking place because of CRA.
  As we here in the Congress consider financial modernization and H.R. 
10, I will strenuously oppose any effort to weaken CRA. In addition, we 
must strengthen our nation's reinvestment and fair lending laws through 
reopening requirements on policyholders. We should ensure that CRA will 
leverage new business opportunities by helping insurance companies, 
community organizations, and local public agencies identify missed 
market opportunities in traditionally underserved neighborhoods.
  I urge my colleagues to stand firm in support of CRA during the 
debate on H.R. 10. Supporting the measurable progress we have made in 
expanding economic opportunities for all segments of our society is the 
right thing to do.

                                            Rhode Island Community


                                     Reinvestment Association,

                                     Providence, RI, May 24, 1999.
     Hon. Robert Weygand,
     House of Representatives,
     Washington, DC.

     Hon. Patrick Kennedy,
     House of Representatives,
     Washington, DC.
       Dear Congressman Weygand and Congressman Kennedy: The RI 
     Community Reinvestment Association (RICRA) is a thirteen-
     year-old organization working to encourage the public and 
     private reinvestment in the housing and community economic 
     development of low and moderate neighborhoods in the state. 
     RICRA provides foreclosure prevention advocacy for individual 
     homeowners.
       The future of CRA is at risk. Given the importance of the 
     Fleet proposed acquisition of BankBoston with 50 bank 
     branches to be sold. One example, the City of Pawtucket has 
     on the table all Fleet and BankBoston branches to be sold. 
     CRA is revitalizing our cities in Rhode Island. From 
     Constitution Hill in Woonsocket to the West End of Providence 
     to Newport and South County, community-based housing and 
     economic development activities are taking place because of 
     CRA. CRA must be preserved. Financial Modernization should 
     benefit all segments of our communities and individual 
     households. Financial Modernization should not be just for 
     depositors with daily balances in the six-figures income. 
     Financial Modernization must include community reinvestment.
       RICRA is requesting that as our Congressional Delegation in 
     the House of Representatives that you join the procession for 
     a one-minute statement on CRA. We've enclosed the text for 
     your consideration. If you agree to do a one-minute speech, 
     please work with Rep. LaFalce's staff (Tricia Haisten 202-
     225-4247).
       Thanking you in advance for your consideration of working 
     to save CRA.
           Sincerely,
                                                    Ray Neirinckx,
                                                      Coordinator.

     

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