For over 25 years an almost unknown federal law, THE COMMUNITY REINVESTMENT ACT (CRA) has helped low-income communities receive bank loans, contributions, and services needed to restore their deprived and decaying neighborhoods. Unfortunately, this law is under attack by proposals from two of four federal bank regulators: The Federal Deposit Insurance Corporation (FDIC) and The Federal Office of Thrift Supervision (OTS).

Under the administration of President Jimmy Carter, Congress passed CRA in 1977 as a response to the practice of redlining by banks. Prior to this law, many banks redlined communities by refusing to extend credit or services in certain poor and predominantly minority urban neighborhoods.

By enforcing banks to serve low-income communities within their geographic market, CRA increased homeownership, small business development, and neighborhood revitalization in traditionally underserved communities. Since its inception, CRA has promted banks to provide more than $1 trillion into city and neighborhood reinvestment projects.

Now, the FDIC is proposing to weaken the enforcement of the law at almost 1000 banks and the OTS has already finalized a similar proposal for savings and loans institutions. Under the current law, banks with assets of more than $250 million undergo regulatory examination of their lending, investments, and services in low-income communities. At smaller banks, regulators limit their examination to lending practices only.

The new proposal would raise the asset size requirement for a complete regulatory examination from $250 million to $1 billion. This would make fewer banks fully accountable to the communities in which they reside.

The Detroit Alliance for Fair Banking urges you to let your voice be heard! As a supporter of the economic justice movement, we ask you to unite with us to stop the most recent move by the OTS to weaken the Community Reinvestment Act (CRA). You can submit a comment letter and invite others to do the same. We ask you to also engage your family and friends, concerned citizens, constituents, places of worship and community groups in blocking this latest attempt to turn back the hands of time in economic justice. Your quick action is needed.

If you have any question, you may contact President Deborah L. Jones at the Detroit Alliance for Fair Banking located at 76 Lothrop, Detroit, MI 48202 at (313) 871-9050