Congressional Record, House, June 26, 2020 — H.J. Res. 90 Community Reinvestment Act Regulations
Summary
Page H2571 of the House section of the Congressional Record for June 26, 2020. The page records that further consideration of H.R. 5332 is postponed, then Ms. Waters calls up H.J. Res. 90, a joint resolution providing for congressional disapproval of a rule submitted by the Office of the Comptroller of the Currency relating to "Community Reinvestment Act Regulations". Her remarks describe the Community Reinvestment Act as a law enacted in 1977, and a letter signed by David M. Dworkin as President and CEO supports the resolution. The page also carries a statement about a school district's move to distance learning for 37,000 students.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Congressional Record, House, June 26, 2020 — H.J. Res. 90 Community Reinvestment Act Regulations.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crec-crec-2020-06-26-crec-2020-06-26-pt1-pgh2571-1d87823807/
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June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2571
The bill was ordered to be engrossed are joined by 70 other Members who notice of proposed rulemaking in the
and read a third time, and was read the have cosponsored the resolution. future to help set specific benchmarks,
third time. The Community Reinvestment Act is thresholds, and minimums. It doesn’t
The SPEAKER pro tempore. Pursu- a civil rights act. It is a law enacted in speak highly of a rule when the office
ant to clause 1(c) of rule XIX, further 1977 to prevent the discriminatory says it is half baked.
consideration of H.R. 5332 is postponed. practice of redlining, in which banks A wide range of stakeholders have
f discriminate against prospective cus- criticized OCC’s efforts. For example, a
b 1615 tomers in nearby neighborhoods, often group of civil rights and consumer
based on their racial or ethnic back- groups issued a statement noting: ‘‘The
PROVIDING FOR CONGRESSIONAL
ground. The law requires banks to in- new OCC rules stick with an overly
DISAPPROVAL OF RULE SUB-
vest and lend responsibly in low- and simplistic metrics system that creates
MITTED BY OFFICE OF THE
moderate-income communities where a loophole for banks to exploit, allow-
COMPTROLLER OF THE CUR-
they are chartered. ing them to get a passing CRA rating
RENCY RELATING TO ‘‘COMMU- Unfortunately, implementation of
NITY REINVESTMENT ACT REGU- by making investments in commu-
the Community Reinvestment Act has nities where they can reap the largest
LATIONS’’ not been robust. Today, 98 percent of rewards, while leaving too many credit
Ms. WATERS. Madam Speaker, pur- the banks routinely pass their Commu- needs unmet for underserved con-
suant to House Resolution 1017, I call nity Reinvestment Act exams. How- sumers and neighbors.’’
up the joint resolution (H.J. Res. 90) ever, research has shown that more
During these difficult times, commu-
providing for congressional disapproval than 60 metro areas across the country
nities across the country have taken to
under chapter 8 of title 5, United are now experiencing modern-day red-
the streets to demand justice and to
States Code, of the rule submitted by lining today. These findings clearly
tell their elected officials that they
the Office of the Comptroller of the demonstrate the need to strengthen
can no longer ignore the needs of com-
Currency relating to ‘‘Community Re- the implementation of the law. Unfor-
munities of color. In a letter sup-
investment Act Regulations’’, and ask tunately, the OCC’s rule would do the
porting this resolution from various or-
for its immediate consideration in the opposite.
Despite the warnings of a wide range ganizations led by the Leadership Con-
House.
The Clerk read the title of the joint of stakeholders, former Comptroller ference on Civil and Human Rights and
resolution. Otting rushed to finalize this rule in National Community Reinvestment Co-
The SPEAKER pro tempore. Pursu- his final days on the job. So, without alition, they wrote: ‘‘In the weeks
ant to House Resolution 1017, the joint the support—without the support—of since the OCC finalized its rule, our Na-
resolution is considered read. the Federal Reserve or the Federal De- tion has been facing a long overdue
The text of the joint resolution is as posit Insurance Corporation, the other reckoning with our troubled legacy of
follows: banking regulators were responsible for racial and ethnic discrimination. . . .
H.J. RES. 90 enforcing the law. Now is certainly not the time to weak-
Resolved by the Senate and House of Rep- Mr. Otting appears to have been de- en the most important civil rights laws
resentatives of the United States of America in termined to undermine the Community we have at our disposal to correct
Congress assembled, That Congress dis- Reinvestment Act ever since the law those disparities.’’
approves the rule submitted by the Office of complicated his efforts to quickly ob- Congress must block any effort by
the Comptroller of the Currency relating to the Trump administration to weaken
‘‘Community Reinvestment Act Regula- tain regulatory approval for OneWest
Bank, a bank that he ran with Treas- our civil rights laws and send a strong
tions’’ (85 Fed. Reg. 34734; published June 5,
2020), and such rule shall have no force or ef- ury Secretary Mnuchin, to merge with message to Federal regulators that
fect. another bank in 2015. they should be doing all they can dur-
The SPEAKER pro tempore. The I am deeply concerned that the OCC’s ing this pandemic to help, not hurt,
joint resolution shall be debatable for 1 final rule will harm low-income and low- and moderate-income commu-
hour equally divided and controlled by minority communities that are dis- nities, and especially communities of
the chair and ranking minority mem- proportionately suffering during this color.
ber of the Committee on Financial crisis, effectively turning the Commu- By passing this resolution, Congress
Services. nity Reinvestment Act into the com- will block the OCC’s harmful rule so
The gentlewoman from California munity disinvestment act. that, once the pandemic passes, bank-
(Ms. WATERS) and the gentleman from If this resolution is not adopted, we ing regulators can renew efforts to col-
North Carolina (Mr. MCHENRY) each will have different rules for different laborate, modernize, and strengthen
will control 30 minutes. banks, leading to regulatory arbitrage the Community Reinvestment Act with
The Chair recognizes the gentle- and a race to the bottom of weaker a new joint rulemaking that truly ben-
woman from California. standards that will only hurt the peo- efits the community the law was in-
GENERAL LEAVE ple the law is intended to help. tended to help.
Ms. WATERS. Madam Speaker, I ask Notably, the OCC rule was adopted Madam Speaker, I urge my col-
unanimous consent that all Members with insufficient and incomplete data, leagues in the House to vote ‘‘yes’’ on
may have 5 legislative days within and it incentivizes large deals at the H.J. Res. 90.
which to revise and extend their re- expense of smaller and more contin-
Madam Speaker, I reserve the bal-
marks on H.J. Res. 90 and to insert ex- uous financial transactions that truly
ance of my time.
traneous material thereon. benefit LMI communities.
For example, the OCC final rule al- Mr. MCHENRY. Madam Speaker, I
The SPEAKER pro tempore. Is there
lows CRA credit to be given for activi- yield myself such time as I may con-
objection to the request of the gentle-
ties in LMI-qualified opportunity sume, and I rise in opposition to the
woman from California?
There was no objection. zones, but the rule does not ensure that resolution.
Ms. WATERS. Madam Speaker, I these activities promote community Madam Speaker, as I said, I rise in
yield myself such time as I may con- development that includes affordable opposition to this resolution. First, be-
sume. housing or small business economic de- fore I get into the contents of my dis-
Madam Speaker, I rise in support of velopment. This can lead to the unac- cussion here, I want to thank Chair-
H.J. Res. 90, a Congressional Review ceptable result of banks receiving CRA woman WATERS for her steadfast and
Act resolution of disapproval to nullify funding for building luxury housing in long-time leadership in supporting mi-
the Office of the Comptroller of the opportunity zones, providing no direct nority, rural, low- and middle-income
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Currency’s rule undermining the Com- benefit to LMI communities. communities, LMI communities. Her
munity Reinvestment Act. Additionally, the OCC concedes it service in the California Assembly and
I introduced this resolution with our does not have all the data it needs to Senate and Congress has been commen-
Consumer Protection and Financial In- properly implement its new CRA surate with that work and that focus.
stitutions Subcommittee chair, Rep- framework, with the rules stating that Committee Republicans share the
resentative MEEKS, and I am proud we the OCC will need to issue yet another chairwoman’s goal of strengthening
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H2572 CONGRESSIONAL RECORD — HOUSE June 26, 2020
these communities. For example, we sistent lack of capital in those commu- deserts that don’t have a branch or
know that community development fi- nities. The CRA is intended to help ad- don’t have many branches. And those
nancial institutions and minority de- dress those issues, and that is why it is underserved places under this rule are
pository institutions play critical roles a vital and important law and, properly distressed areas, economically dis-
in getting necessary funds to the structured, can deliver in a better way. tressed areas, Tribal lands, folks that
smallest of small businesses in these But, clearly, we know the status quo have been hit by natural disasters, re-
communities. is not working. It is not working for gardless of where they get deposits or
Committee Republicans support the the communities that we care des- if they get deposits from those areas. I
efforts of the Paycheck Protection Pro- perately about giving opportunity to, think there are some laudable changes.
gram to target small lenders as well as economic opportunity to, and that is Now communities without bank
small businesses in communities across really what this is driven towards with branches that were essentially invis-
America. this law. ible under the current framework will
Committee Republicans believe the Modernizing this regulatory frame- be able to receive CRA investment.
reforms made in the underlying final work is long overdue. Here are a few This is a huge improvement.
rule promulgated by the Office of the aspects of the rule that I believe rep- Finally, the rule introduces objective
Comptroller of the Currency will con- resent major improvements over the metrics and transparent evaluations. I
tinue to support minority, rural, and old regulations. think that is a really good thing for
LMI communities into the 21st cen- First, the rule provides for a public regulation. Instead of a highly subjec-
tury. list of activities that will count for tive exam and a 1,000-page evaluation,
Madam Speaker, the Community Re- CRA credit so the community can un- examiners will be able to deliver more
investment Act was enacted in 1977, derstand, the banks can understand, consistent, useful, and timely CRA
nearly 43 years ago. Its purpose was to and we, as elected officials who have evaluations; ‘‘timely’’ meaning more
ensure depository institutions like oversight of this program, we can un- frequent and more readily available.
banks and savings associations help derstand, too. And they will have that Clearer metrics and better reporting
meet the needs of their local commu- public list on what counts for CRA will enable banks, regulators, and the
nities. The law tasks the OCC, as well credit. public to have a better understanding
as the other bank regulators, with This list will eliminate regulatory
of the CRA activities of individual
issuing rules to carry out that purpose. ambiguity and provide certainty over
banks and of cross-sections of the in-
the types of investments that will lead
However, the last time the CRA regula- dustry. Consumers will be able to see
to a good evaluation. With more cer-
tions were meaningfully updated was that and understand the type of insti-
tainly, banks will naturally make more
in 1995. tution they are banking with as well.
I think we can all agree that a lot investments. That is how capitalism
I would also note that this final rule
has changed in the past 25 years, in- works. This change alone is likely to
is a culmination of a multiyear proc-
cluding how banks can best serve their increase community reinvestment
ess. It reflects more than a decade of
communities. Much of this change has across the board.
dialogue about how to make the CRA
Second, the rule provides a better
been driven by technology and innova- work better, it builds on recommenda-
model for where the activity can count.
tion. tions that Federal banking agencies
In 1995, it was cutting edge when you Banks will be incentivized to invest
submitted to Congress in 2017 and rec-
could call your bank and get your bal- where they take deposits instead of
ommendations released by the Treas-
ance and the last couple of checks that only around their branches. Let me ex-
ury Department in April of 2018 and
cleared your account. Calling up and plain.
Previously, a bank was only evalu- more than 75 hard comments submitted
not having to talk with somebody and during the rulemaking process that up-
ated on its lending and investment in
a computer tell you the answer, that dated and changed and made better the
an area around its physical footprint,
was cutting edge. And at that time, regulations that the administration
but banking today is very different
only 24 percent of Americans had put forward.
than it was a generation ago when this
accessed the internet. Republicans and Democrats agree the
regulation was written. Banking today,
Since that time, we have witnessed a Community Reinvestment Act is ex-
with the help of new technology and in-
massive shift to online and mobile de- tremely important, it is an important
novation has changed substantially.
livery of banking services, and that is law. And because it is important, the
So, if an online bank chooses a head-
for good in many, many ways. This regulations need to keep pace with how
quarters in one State—let me give you
virus has really enhanced that trend Americans bank today.
an example: Utah.
just in the last few months. This means Utah has a lot of online banks and I believe this rule is a huge improve-
that where banks get their deposits they domicile in Salt Lake City, so ment over the status quo.
doesn’t necessarily match up with that is where the community giving is Madam Speaker, I urge my col-
where their branches are physically lo- around Salt Lake City, even if they leagues to vote against this resolution
cated. take most of their deposits from Chair- and support the underlying rule.
Second, the number of bank branches Madam Speaker, I reserve the bal-
woman WATERS’ district or my district.
has steadily declined since the finan- ance of my time.
So, if you have that headquarters for
cial crisis, but the CRA regulations Ms. WATERS. Madam Speaker, I
an online bank, it should not prevent
continue to place a very heavy empha- yield 3 minutes to the gentleman from
them from making investments in
sis on banks’ physical footprints rather New York (Mr. MEEKS), who is the
other States or localities that des-
than where they truly serve. chairman of the Subcommittee on Con-
perately need capital.
At the same time, CRA exams have Under the final rule, banks will get sumer Protection and Financial Insti-
gotten more complex and less trans- credit for investing in so-called bank- tutions and the coauthor of this bill.
parent. Banks can only guess which of ing deserts. This has been a priority of Mr. MEEKS. Madam Speaker, I rise
their community investments will re- mine for the last decade, to help those in support of H.J. Res. 90, and I am
ceive credit, because the exams are who are in communities where they proud to have joined Chairwoman
quite highly subjective. The written can’t get ready access. We know food WATERS in introducing it.
evaluations can be thousands of pages deserts in urban areas, and if you can’t This resolution provides for congres-
long, and yet the regulators and the get access to fresh food, you can’t have sional disapproval of the rule sub-
public have no clear data to help un- mitted by the Office of the Comptroller
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a healthy diet.
derstand where all the CRA money has of the Currency relating to the Com-
gone. b 1630 munity Reinvestment Act.
But there are, sadly, a few things That is a huge issue. It is a huge The Community Reinvestment Act
that have not changed in the last 25 issue in rural areas, it is a huge issue was enacted into law, as indicated, in
years—sadly—including socioeconomic in urban areas. 1977 as a direct response to the long,
conditions in the poorest communities, So we have banking deserts now, and painful legacy of structural discrimina-
economic opportunity, and the per- this rule prioritizes those banking tion, financial exclusion, redlining, and
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June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2573
economic suppression of racial minori- Colorado (Mr. TIPTON), a great member and against other banks. It also allows
ties in America, a legacy of prejudice from the Financial Services Committee banks to reach new constituencies with
and economic exclusion that we are who also is the vice chair of the West- their CRA dollars, most notably dis-
seeing all-too-clearly still echoes to ern Caucus. abled, Tribal, rural, and farm popu-
this day, which is why many of the in- Mr. TIPTON. Madam Speaker, I lations.
dividuals you see in the streets today thank the gentleman for yielding. By increasing regulatory certainty
want to correct this structural problem I rise in opposition to the resolution and reducing subjectivity, the OCC
that we have in our Nation. on the floor today. CRA modernization rule can equal
At its core, the Community Reinvest- We agree that the Community Rein- greater lending and investment in un-
ment Act is a civil rights bill. It was vestment Act is an important historic derserved communities.
the fourth in a series of banking bills piece of legislation; however, my Madam Speaker, I urge my col-
passed to address systemic discrimina- friends across the aisle have leagues to vote ‘‘no’’ on the measure.
tion in banking, including the Fair mischaracterized the OCC’s rule and Ms. WATERS. Madam Speaker, I
Housing Act of 1968, the Equal Credit the modernization of the CRA. yield 2 minutes to the gentleman from
Opportunity Act of 1974, and the Home First, the OCC’s rulemaking process Texas (Mr. GREEN), the chairman of the
Mortgage Disclosure Act of 1975. has been thorough, inclusive, and Subcommittee on Oversight and Inves-
These bills built on the findings of thoughtful. CRA regulations haven’t tigations.
the 1961 report from the U.S. Commis- been meaningfully updated since 1995, Mr. GREEN of Texas. Madam Speak-
sion on Civil Rights, and community- making this a much-needed effort to er, it is an honor to serve in the Con-
led civil action in Chicago to hold ensure that regulations match the gress of the United States of America
banks accountable for rampant dis- modern state of the banking industry. under Chairwoman WATERS’ leadership.
crimination in lending in Black and The OCC’s processes included input Madam Speaker, Ms. WATERS and I
Hispanic communities. from the Federal Reserve, the FDIC, both know that the CRA was not born
Any efforts at reforms and mod- the Federal Financial Institutions Ex- to create luxury homes in opportunity
ernization must remain true to this amination Council, and the Treasury zones. The CRA was not birthed to pro-
legacy, particularly given the over- Department. vide opportunities in what are being
whelming evidence of continued dis- The OCC has also provided ample op- called banking deserts that may not be
crimination in banking and access to portunities for regulated banks and LMI communities.
finance. consumer groups to weigh in. The CRA was born to correct the
We must make sure that when we What is more, 94 percent of the par- harm that the government had done in
look at the CRA, the CRA is creating ticipants in the OCC’s advance notice the 1930s.
an opportunity for minority businesses of proposed rulemaking agreed that the At that time, the government, by and
to thrive and strive and investing fur- current CRA rules lack objectivity, through the FHA, decided that it would
ther in its communities; that afford- transparency, and fairness. These are craft maps, and these maps had red
able housing is something that is the central themes to the OCC’s mod- lines on them. These red lines became
there, not something where we are in- ernization effort. communities that were undesirable,
vesting and driving people out so they Second, this update to the CRA is but more appropriately, they were
can’t have the benefits in the commu- needed now more than ever. One large deemed unsafe, and as a result, lending
nity. It must be relevant to the com- bank’s CEO recently noted that due to institutions would not lend in these
munity and keeping the people in the COVID–19, the bank has seen some- redlined areas.
community so that they can see a bet- where between a 17 and 35 percent in- The CRA was born to end the dis-
ter life. crease in online banking activity that crimination, the redlining, but this bill
Under Comptroller Otting’s leader- normally would have been conducted in takes a step back to the 1930s.
ship, the OCC’s work on CRA mod- the branch. Americans are turning to This bill will not undo the harm that
ernization has systematically failed to online banking resources now more was done; it will increase the harm. I
remain true to the law’s civil rights than ever. cannot support it.
roots. In fact, the very way in which The OCC’s rule takes steps to be able The CRA was created to help LMI,
the rule was finalized and published by to ensure that CRA dollars go into low- low-to-moderate income, communities
the OCC was symptomatic of the agen- to-moderate income communities have banking privileges that they were
cy’s failed approach from the start. It where banks draw their deposits, not denied under the law.
was rushed, unfinished, unsupported by only where they have bank branches. This bill doesn’t help us with the
data, and not done in coordination This change is forward-looking and LMIs. It is going to give those big guys
with the other prudential regulators. should mark significant new opportuni- an opportunity to acquire these funds.
And to cap it all off, Comptroller ties to be able to invest in underserved I stand against it.
Otting abandoned his post within the communities. Madam Speaker, I support the chair
very same week of publishing this rule, Third, the OCC regularly and mean- of the committee and I stand for jus-
in the middle of a pandemic, economic ingfully engaged with critics in the tice for the LMI communities.
crisis, and a looming banking crisis, rulemaking process. The OCC met with Mr. MCHENRY. Madam Speaker, I
leaving everyone else to hold the bag. community, consumer, and academic yield 3 minutes to the gentleman from
The SPEAKER pro tempore. The groups to listen to their concerns Michigan (Mr. HUIZENGA), my friend
time of the gentleman has expired. about the proposal. and the ranking member of the Sub-
Ms. WATERS. Madam Speaker, I These meetings resulted in real committee on Investor Protection, En-
yield an additional 30 seconds to the changes to the OCC’s final rule, includ- trepreneurship, and Capital Markets.
gentleman. ing a raised exemption threshold for Mr. HUIZENGA. Madam Speaker, I
Mr. MEEKS. Madam Speaker, the community banks, changes to the rise today in opposition to H.J. Res. 90,
fact is, there is room to modernize CRA treatment of mortgage origination and which is an effort to overturn a long-
and to update it to the realities of sale on the secondary market for pur- overdue regulatory update of the Com-
modern-day banking. The Fed and com- poses of the CRA, and raising the bar munity Reinvestment Act.
munity advocacy groups have put for- for a passing grade in CRA examina- Frankly, it is ludicrous to compare
ward some thoughtful ideas on just tions. this modernization effort to bringing
how to do that. This rule creates greater account- us back to 1930s banking policy. I don’t
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Let us pass this bill, let us stop this ability between banks and the commu- understand how my colleagues on the
ill-fated rule that the OCC put out, and nities they invest in under the CRA. It other side can possibly equate that.
let us do some real CRA to help people adds transparency in what activity So we all agree the fundamental pur-
in these communities who have been counts towards CRA credit, creates pose of the Community Reinvestment
deprived for far too long. fairer and more timely examinations, Act is to combat unacceptable, dis-
Mr. MCHENRY. Madam Speaker, I and allows CRA performances to be criminatory redlining, and demand
yield 3 minutes to the gentleman from measured assessment over assessment that banks meet the credit needs of
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H2574 CONGRESSIONAL RECORD — HOUSE June 26, 2020
their communities. There is no dis- By using the Congressional Review the FDIC approved just this week this
agreement on that. My friend from Act to overturn this critical final rule, rule, the CRA, so that is, in fact, they
New York laid out that history very, my colleagues on the other side of the actually support this underlying rule.
very well. It is the reason why we sup- aisle will only delay progress and harm Madam Speaker, I yield 4 minutes to
port the CRA and modernizing it. the very communities that I know they the gentleman from Little Rock, Ar-
However, the regulations promul- want to protect. Those are the same kansas (Mr. HILL), my colleague and
gated to implement the CRA haven’t communities that I serve as well. friend, the ranking member of the Na-
been meaningfully updated since 1995. I urge all of my colleagues to vote tional Security, International Develop-
Now, earlier we were talking about against this partisan attempt to over- ment and Monetary Policy Sub-
credit reporting, and the chair cited turn much-needed reform and mod- committee.
the fact that we had not addressed this ernization of the Community Reinvest- Mr. HILL of Arkansas. Madam
in 17 years, as to why we needed to pass ment Act, and I am hopeful that we are Speaker, I thank the ranking member
the bill that was on the floor. Well, we going to be able to come together and for the time.
haven’t addressed the CRA in any work on true, meaningful, actual re- Madam Speaker, I rise today in oppo-
meaningful way for 25 years. We have 8 sition to H.J. Res. 90, but I rise in sup-
form in the long run.
years on that on this particular issue. Ms. WATERS. Madam Speaker, I port of the Community Reinvestment
So in May of this year, the Office of Act. And I rise in support of the goal of
yield 2 minutes to the gentleman from
the Comptroller of the Currency issued CRA, for a fair and more equitable
Washington (Mr. HECK), a senior mem-
a final rule that modernizes the Com- treatment of financial investment, par-
ber of the Financial Services Com-
munity Reinvestment Act regulations ticularly in low- and moderate-income
mittee. areas of our communities.
for the 21st century. Mr. HECK. Madam Speaker, I thank
The final rule provides clarity to This resolution overturns the up-
the chairwoman for introducing this dated Community Reinvestment Act
banks on what activities count for a important measure, of which I am a
Community Reinvestment Credit, up- regulation before it has even had a
proud cosponsor. chance to take effect.
dated the geographic definitions of a This resolution is especially timely Speaking purely from a procedural
bank’s community, as well as accounts as we reckon with the legacy of dis- standpoint, this resolution, in my view,
for the technological transformation of crimination in our country. In that Madam Speaker, is not necessary. We
banking services that we have seen. process, we must consider how housing could be spending time on the House
This will ensure that banks’ reinvest- policy has contributed to systemic in- floor today in a much more productive
ment will be in those communities that equality. way to advance the economy.
need it most. For decades in this country, we al- The Office of the Comptroller of the
The final rule establishes new per- lowed a Federal agency to legitimize Currency has gone through a rigorous
formance standards and metrics that racial discrimination by creating those Administrative Procedure Act process.
will allow OCC bank examiners to color-coded maps indicating where in- I think our constituents should know
measure performance objectively and vestments would be profitable, they have conducted outreach since
produce more consistent, useful, and ‘‘greenlined,’’ or where it would not be, 2017, 3 years, and have taken all that
timely Community Reinvestment Act ‘‘redlined.’’ into consideration, the Federal Reserve
evaluations to provide more clarity to We built institutional obstacles for data, Treasury recommendations, and
banks. Black families trying to purchase a have conducted both advanced notice
Now, I understand that some of my home, and that resulted in devastating, for proposed rulemaking and a notice
colleagues want to have this ‘‘let’s intergenerational financial disadvan- of proposed rulemaking, and received
move the target to my pet project’’ tages. 7,500 comments.
kind of a way of evaluating where a Redlining prevented access to the The final rule ended up incorporating
bank is going, but that is not what it is single most important wealth-building much of this serious and constructive
intended to do. tool an American has access to, that is, criticism received from all stake-
Lastly, this modernization intro- owning a home. The result? Black fam- holders, notably, our community
duces objective reporting measures ilies have a median net worth of groups.
that will allow comparison over time $17,000, compared to $171,000 for White Banks have been complying with the
and between banks, which has never families. In fact, homeownership by Community Reinvestment Act for
been possible in the history of the Black families is 44 percent, and by years. This is not a new rule, Madam
CRA. What is a good project in one White families, 74 percent. Speaker. This rule is simply being up-
neighborhood should be viewed as a We have a responsibility to do every- dated to reflect the current economic
good project in an adjacent neighbor- thing we can to correct this. After all, and banking conditions in our country.
hood, and that isn’t the case today. we created it. The last time that was updated was
1995.
b 1645 Yet, in the middle of a pandemic that
Working for a publicly traded bank
As we work to ensure a strong eco- has made racial disparities all the
in Arkansas then, I was involved in the
nomic recovery for all Americans—all more pronounced, the OCC rushed out a
training and the implementation at
Americans—it is critical that we en- final rule that undermined the legisla- that bank for those 1995 revisions.
courage financial institutions to con- tion that made redlining illegal, and Madam Speaker, as one of the few
tinue to provide services to those most they even did it without the support of Members of Congress who has actually
in need. the Federal Reserve or FDIC. gone through multiple CRA examina-
I have the poorest county in the The OCC’s vague definitions and tions, I can assure my colleagues that
State of Michigan. I have urban and overly simplistic metrics do not do jus- this rule could benefit from a thought-
suburban areas. These are issues that tice to what a crucial role homeowner- ful update.
affect all of America. ship and housing policy have played in The final rule clarifies what counts
The OCC’s rule will play an impor- racial inequality. for CRA credit. It updates what bank
tant role in this recovery effort by en- Their approach takes us backward. If activity counts for CRA credit. It eval-
couraging more capital, investment, you don’t want to go backward, vote uates the CRA performance of our fi-
and lending services in the commu- ‘‘yes’’ on this measure. If you believe nancial institutions in a much more
nities hardest hit by COVID–19. homeownership should be available to fair, open manner. It makes CRA re-
The SPEAKER pro tempore. The all Americans, regardless of skin color, porting more transparent and faster. It
rfrederick on DSKBCBPHB2PROD with HOUSE
time of the gentleman has expired. vote ‘‘yes’’ on this matter. If you op- reflects the fintech community of dig-
Mr. MCHENRY. Madam Speaker, I pose redlining, vote ‘‘yes’’ on this ital banking in our country today. And
yield the gentleman from Michigan an measure. If you want to stand for ra- it enhances CRA for rural areas and
additional 1 minute. cial justice, vote ‘‘yes’’ on this meas- Tribal areas in our country.
Mr. HUIZENGA. Madam Speaker, I ure. In short, the bank branch issue that
appreciate the ranking member doing Mr. MCHENRY. Madam Speaker, I the ranking member mentioned is seri-
that. Let me just wrap up. would just note for the RECORD that ous. We have had a shrinking number
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June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2575
of banks since the original rule was The Community Reinvestment Act is deny Black applicants at significantly
proposed in 1977, and the CRA rule was an important law that encourages in- higher rates than they do White appli-
connected to those bank branches. vestments in places like Racine, Keno- cants.
That is another reason for modernizing sha, and Janesville, and communities Now, the CRA is an antiracist, anti-
the rule. in need across this country. But the poverty policy that seeks to remedy
Since we created this bank branch rulings governing the CRA haven’t some of the damage done.
closure system by our economy con- been updated since 1995. Yet, while this administration and
tracting the number of banks, due to In the last 25 years, the banking in- the Republican Party paid lip service
regulation and the like, it is a double dustry has undergone significant to Black and Brown communities with
whammy, so let’s make sure that our changes. Small and medium-sized toothless policing legislation, behind
banks can get credit for doing a good banks have consolidated and closed. everyone’s back, the OCC made moves
job on accessing of all of our commu- Branches have disappeared from some to gut rules around the CRA and ad-
nities, particularly our minority, low- rural and low-income areas. Tech- vance the continued economic oppres-
to-moderate income, and rural areas nology has drastically affected the way sion of Black people in the United
served by those institutions. millions of Americans are conducting States. In fact, these rule changes ad-
Let’s fix this problem by having the their banking. vance gentrification and value luxury
certainty that we have an effective The CRA needs to be updated to fit housing over investment in Black lives.
CRA rule, that it is implemented prop- the banking system we have today and Well, to that move, we have four
erly, and that we can all see our con- to meet the needs of the communities words: Not on our watch. That is be-
stituencies benefited by that. in 2020. That is exactly what the OCC is cause, in this House, in the 116th
Let’s let the Comptroller of the Cur- trying to do with the new rule. House, under the leadership of Chair-
rency do their job. They are the bank- The new CRA rule provides financial woman WATERS, we will value Black
ing experts. They are the ones who institutions with greater clarity about lives.
have been managing this work. Con- which activities count for CRA credit Mr. MCHENRY. Madam Speaker, I re-
gress should not be undermining it. and where that activity needs to take serve the balance of my time.
Madam Speaker, I thank the chair- place. It also takes into account the re- Ms. WATERS. Madam Speaker, I
man for the time, and I urge my col- ality that many banking activities are yield 2 minutes to the gentleman from
leagues to vote ‘‘no’’ on the resolution conducted online by giving banks that Illinois (Mr. GARCÍA), a member of the
but support the work of the Commu- are largely digital credit for investing Financial Services Committee.
nity Reinvestment Act. in areas where they take deposits. b 1700
Ms. WATERS. Madam Speaker, I By implementing consistent, objec- Mr. GARCÍA of Illinois. Madam
yield 2 minutes to the gentlewoman tive metrics, the new CRA rule also Speaker, I thank Chairwoman WATERS
from Massachusetts (Ms. PRESSLEY), a makes it easier for examiners to meas- for this opportunity.
member of the Financial Services Com- ure the performance and to compare in- I rise in support of this resolution
mittee. stitutions. This resolution of dis- and join my colleagues in opposition to
Ms. PRESSLEY. Madam Speaker, I approval would block all that progress, the Trump administration’s new rule
rise today in support of this critical to the detriment of communities in that weakens implementation of the
resolution reversing a rule tainted by need. Community Reinvestment Act.
conflicts of interest and callous dis- I urge my colleagues to vote ‘‘no’’ on It is an outrage that the Trump ad-
regard for the communities most af- this resolution. ministration’s OCC issued this rule
fected. Ms. WATERS. Madam Speaker, I that guts a historic law in the midst of
As hundreds of thousands take to the yield 2 minutes to the gentlewoman an unprecedented pandemic.
streets, as the cries for a reckoning from New York (Ms. OCASIO-CORTEZ), To add insult to injury, former Chair-
with this Nation’s past and present who is also a member of the Financial man Otting resigned his post imme-
grow louder, this administration be- Services Committee. diately after issuing the rule so that he
lieves that the future is further deregu- Ms. OCASIO-CORTEZ. Madam will avoid cleaning up the fallout from
lation. Speaker, I thank Chairwoman WATERS this mess. It is up to Congress to clean
Today, we reject the administration’s for her continued leadership on the it up, and that is what we are seeking
position that it is banks that are de- Community Reinvestment Act. to do.
serving of our time and sympathy as Over the last several weeks, our Na- The Community Reinvestment Act
further relief funding is denied to mil- tion has been gripped by the uprisings was enacted more than 40 years ago
lions of struggling families. against anti-Black racism and sys- and has been one of our most powerful
There is no separating the history of temic racial injustice across the tools against redlining and the per-
banking from the history of racism in United States. But there is a difference petration of systemic racism and pov-
this country. Wall Street, our Nation’s between saying that we believe in the erty.
financial capital, is named after a inherent dignity, equality, and value of Like so much of our country’s his-
structure erected by enslaved people our Black brothers and sisters and ac- tory, the story of the CRA runs
and then served as a site where they tually committing to it. The Commu- through Chicago, where a local commu-
were bought and sold. nity Reinvestment Act is one such nity organizer in the Austin neighbor-
Today, we have predatory lenders set commitment. hood, Gale Cincotta, led the fight
up in Black communities, where sys- Our Nation has an unconscionable ra- against discriminatory housing injus-
tems of oppression ensure a steady cial wealth gap that is directly rooted tice and earned the nickname ‘‘Mother
stream of customers, communities that in the racist financial practice of red- of the CRA.’’ Through her work with
banks have decided are simply not lining, whereby Black communities her neighborhood association and Na-
worth their time or their business. had red lines drawn around them on a tional People’s Action, Cincotta fought
The Community Reinvestment Act map and were systematically denied against redlining and disinvestment
reflects, and is a direct response to this banking, housing, and economic oppor- from our communities using some of
history, and aims to reverse course. tunities. the innovative and confrontational tac-
I urge all of my colleagues to ac- As a result, generations of White tics that we recognize in today’s pro-
knowledge the decades of divestment communities were given a head start at test movements.
from our communities and to support homeownership, which was the founda- My district is a working-class immi-
rfrederick on DSKBCBPHB2PROD with HOUSE
this crucial civil rights legislation. tion of generational wealth, while grant district, and Gale Cincotta and
Mr. MCHENRY. Madam Speaker, I Black communities were denied. organizers like her across the country
yield 4 minutes to the gentleman from This fuels a runaway generational fought to pass the CRA so that commu-
Janesville, Wisconsin (Mr. STEIL). wealth gap that haunts the United nities like mine would not be left be-
Mr. STEIL. Madam Speaker, I rise States today. It is a practice that con- hind by financial institutions.
today in opposition to the resolution of tinues, with over 60 metro areas, in The OCC’s rule allows lenders to
disapproval. this very moment, having banks that count activities that have nothing to
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H2576 CONGRESSIONAL RECORD — HOUSE June 26, 2020
do with improving our neighborhoods So, in closing, the Community Rein- The SPEAKER pro tempore. The gen-
toward their requirements to serve vestment Act, we agree, is an impor- tlewoman from California has 81⁄2 min-
low- and moderate-income commu- tant law that is intended to support utes remaining.
nities, decrease transparency, and underserved communities across Amer- Ms. WATERS. Madam Speaker, be-
make it even harder to hold these in- ica. Maintaining the status quo also ig- fore I move into my closing, I would
stitutions accountable. That is why we nores the innovation and the needs of like to correct Mr. MCHENRY, who said
oppose it. our community. the FDIC approved the OCC CRA rule
Mr. MCHENRY. Madam Speaker, I The innovations taking place to fi- this week. That is not correct. My staff
am prepared to close. nancial services and to banking over just called the FDIC to confirm that
May I inquire if there are further the last 25 years need to be addressed, they did not approve the rule.
speakers on the majority side. but also the fact that we are not actu- Mr. MCHENRY. Will the gentle-
Ms. WATERS. Madam Speaker, I ally meeting the needs desperately woman yield?
have additional speakers. needed in communities around our dis- Ms. WATERS. I yield to the gen-
Mr. MCHENRY. Madam Speaker, I re- trict, both the urban and rural. tleman from North Carolina.
serve the balance of my time. The new regulations will increase in- Mr. MCHENRY. I misspoke. I said
Ms. WATERS. Madam Speaker, I vestment and capital in communities they supported the CRA.
yield 2 minutes to the gentleman from and provide more clarity and trans- Ms. WATERS. Madam Speaker, I
Florida (Mr. CRIST), who is a member parency to all parties involved in the yield myself the balance of my time.
of the Appropriations Committee. process. That is why it is a good up- Madam Speaker, I include in the
Mr. CRIST. Madam Speaker, I would RECORD multiple letters from dozens of
date.
like to take this opportunity to thank As we work to ensure a strong eco- consumers, community and civil rights
Chairwoman WATERS for promoting ac- nomic recovery for all Americans, it is groups in support of H.J. Res. 90.
cess to capital for minority borrowers. critical we encourage financial institu- CHIEF COUNSEL’S OFFICE, OFFICE OF
Since the murder of George Floyd, THE COMPTROLLER OF THE CUR-
tions to continue to provide services
our Nation has embarked on a true, RENCY,
for those most in need. The OCC’s final
broad-based push to defeat institu- Washington, DC.
rule will play an important role in this
tional racism. America is coming to re- Attention: Comment Processing
recovery effort by encouraging more
alize that racism did not end with We are writing to oppose the Federal De-
emancipation, and it did not end with capital, investment, and lending serv-
posit Insurance Corporation (FDIC) and the
civil rights. It is still very much with ices in the communities hardest hid by Office of Comptroller of the Currency’s (OCC)
us all today. COVID–19. That is good. proposed changes that would seriously weak-
So, as we commit ourselves to Black The OCC took a very thoughtful ap- en the Community Reinvestment Act (CRA)
Lives Matter, we need to also ensure proach, embracing input from other The U.S. Conference of Mayors has strong
Black communities matter, Black agencies and stakeholders over the policy supporting the CRA. The law was
homeownership matters, Black wealth course of several years. The final rule passed in 1977 to end redlining, and to meet
builds in nearly all of the constructive the credit needs of communities where banks
matters, and Black businesses matter. do business. Discrimination in lending still
My hometown of south St. Peters- criticism the agency has received
through the open comment process. In exists.
burg, Florida, is blessed by a large and But the FDIC and OCC proposed changes
vibrant Black community where, de- fact, this shows the agency is willing would make the banks less accountable to
spite their strength, pride, character, to compromise but not willing to settle their communities through complex and con-
and entrepreneurial spirit, we are still for the status quo. fusing performance measures on CRA exams
working to overcome institutional rac- The OCC’s modernization of the CRA while oversimplifying how bank’s perform-
ism. Underinvestment in the commu- regulation is a long overdue update ances to local needs are measured. Moreover,
nity, food deserts, and redlining exist. that will help our communities come public input into the process will be difficult
This past weekend, I witnessed the into the 21st century stronger and and limited. This will result in significantly
healthier. The last time these regula- fewer loans, investments and services to
unveiling of the Black Lives Matter communities most in need of more credit and
mural in front of the Dr. Carter G. tions were revised was in 1995, when
capital.
Woodson African American Museum. It banking received most of their deposits The CRA has been of enormous benefit to
is right near one of my favorite res- through branches, and as such, the old low- and -moderate income Americans. For
taurants on the south side, Chief’s Cre- regulations that are on the books still example, since 1996, CRA-covered banks
ole Cafe. rely heavily on branch locations. issued more than 27 million small business
While the art moved me beyond Quite frankly, what we have seen loans in low-and moderate-income tracts, to-
words, reality quickly set in. The own- over the last 100 days in America is taling $1.093 trillion, and $1.076 trillion in
that branches are less vital than they community development loans that support
ers of Chief’s Creole, the Brayboys,
were in previous generations, because affordable housing and economic develop-
were told by their bank that they ment projects benefitting low-and moderate-
couldn’t get a PPP loan, not because most of these branches have been shut
income communities.
they didn’t qualify, but because the big down in our States because our States While such results are very good, the pro-
banks are leaving behind the smallest are trying to do the right thing to ad- posed rule will make it all but impossible to
businesses, businesses overrepresented dress this health crisis. That is why we continue such impressive results. Moreover,
by Black, women, and veteran owners. are wearing masks, that is why we are much more can be achieved by regulations
If the banks aren’t making PPP social distancing, and that is why we that modernize the CRA to take into ac-
loans to Black-owned businesses when are trying to be responsible to one an- count changes in the banking industry and
other and be thoughtful in our ap- the economy. For example, independent
they don’t have skin in the game, how
proach to one another. mortgage companies not covered by CRA
can we trust them to do the right thing make more than 50 percent of the home
when it is their own money at risk? But, unfortunately, this bill before us
mortgages in our nation. If anything, the
That is why the Community Rein- is a very straightforward up-and-down.
CRA should be strengthened to reflect
vestment Act is so vitally important. I will say let’s not support the status changing demographics and changes in the
That is why we need it to work for the quo. Let’s support innovation and an financial industry, and not weaken the CRA
communities it was actually designed update to our regulation to meet the as the proposed rule would do. We strongly
to serve. needs of our communities and to meet encourage you to reconsider a proposed rule,
The OCC got it wrong. Vote ‘‘yes’’ to the needs that are so desperately need- and look to modernizing CRA that will truly
repeal the rule. ed both in the rural communities and benefit low and moderate income citizens.
Sincerely,
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Mr. MCHENRY. Madam Speaker, I re- the urban communities in America.
Justin Wilson, Alexandria, VA; Satya
serve the balance of my time. Vote against this resolution and sup-
Rhodes-Conway, Madison, WI; Alan L. Nagy,
Ms. WATERS. Madam Speaker, if Mr. port the underlying rule. Newark, CA; Alan Webber, Santa Fe, NM;
MCHENRY has no more speakers, I am Madam Speaker, I yield back the bal- Sam Weaver, Boulder, CO; Carlo DeMaria
prepared to close. ance of my time. Jr., Everett, MA; Robert Garcia, Long
Mr. MCHENRY. Madam Speaker, I Ms. WATERS. Madam Speaker, may Beach, CA; Steve Benjamin, Columbia, SC;
yield myself such time as I may con- I inquire as to how much time is re- Jerome A. Prince, Gary, IN; Brian C. Wahler,
sume. maining. Piscataway, NJ; Gregory J. Oravec, Port St.
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June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2577
Lucie, FL; Steve Adler, Austin, TX; Robert meets the needs of communities of color and (SAJE), Tenderloin Neighborhood Develop-
Donchez, Bethlehem, PA; Jack W. Bradley, low-income communities by ensuring that ment Co, The Fair Housing Council of San
Lorain, OH; David J. Berger, Lima, OH; banks and other corporations invest and con- Diego, The Public Interest Law Project, Ven-
Scott Conger, Jackson, TN; Joe Coviello, duct business in our communities in a just tura County Community Development Cor-
Cape Coral, FL; Denny Doyle, Beaverton, and equitable manner. poration, Western Center on Law & Poverty,
OR; Hillary Schieve, Reno, NV; Trey Mendez, The CRA is a critical piece of civil rights Women’s Economic Ventures, Working Solu-
Brownsville, TX; Patrick J. Furey, Torrance, legislation that has worked to fight historic tions, Maria Benjamin (Deputy Dir, San
CA; Marcia A. Leclerc, East Hartford, CT; and continuing redlining practices, and to Francisco Mayor’s Office of Housing and
Jesse Arreguin, Berkeley, CA; Jim Kenney, bring much needed lending and investment Community Development), Nick Cortez
Philadelphia, PA; Nan Whaley, Dayton, OH; into low-income communities of color. The (Chair, California Progressive Alliance),
Christopher L. Cabaldon, West Sacramento, CRA encourages banks to help meet local Mark Moulton (Vice Chair, EPA CAN DO).
CA; Martin J. Walsh, Boston, MA; Allan community credit needs by creating opportu-
Ekberg, Tukwila, WA; Jorge O. Elorza, Prov- nities for homeownership, small business THE LEADERSHIP CONFERENCE AND
idence, RI; Juan Carlos Bermudez, Doral, FL; ownership, job creation, financial capability, NATIONAL COMMUNITY REINVEST-
Frank C. Ortis, Pembroke Pines, FL; Bryan and affordable housing and community de- MENT COALITION,
K. Barnett, Rochester Hills, MI; Jacob Frey, velopment in neighborhoods that have been June 23, 2020.
Minneapolis, MN; Ron Nirenberg, San Anto- otherwise excluded from the financial main- Hon. NANCY PELOSI,
nio, TX; Joy Cooper, Hallandale Beach, FL; stream and the American dream. Speaker of the House, House of Representatives,
Lyda Krewson, St. Louis, MO; Steve The OCC’s harmful rule will reverse these Washington, DC.
Schewel, Durham, NC; John Giles, Mesa, AZ; gains by substantially lowering the bar and DEAR SPEAKER PELOSI: We, the undersigned
James B. Hovland, Edina, MN; Nathan enabling banks to get passing grades through organizations, write to express our strong
Blackwell, St. Cloud, FL; Hazelle Rogers, activities that are further and further re- support for H.J. Res. 90, a Congressional Re-
moved from low-income communities, home- view Act resolution of disapproval that will
Lauderdale Lakes, FL; Eric Johnson, Dallas,
owners, tenants and small businesses. The nullify a rulemaking by the Office of the
TX; Mark W. Mitchell, Tempe, AZ; Tom
OCC takes this damaging action during a Comptroller of the Currency (OCC) that, if
Dailly, Schaumburg, IL; Andy Berke, Chat-
pandemic that has had a disproportionate allowed to stand, would drastically under-
tanooga, TN; Pauline Russo Cutter, San
impact on the very communities meant to mine one of our nation’s most important
Leandro, CA; Steve Gawron, Muskegon, MI;
benefit from CRA. civil rights laws, the Community Reinvest-
William Peduto, Pittsburgh, PA; Lioneld
We urge all members of Congress to co- ment Act of 1977 (the CRA).
Jordan, Fayetteville, AR; Muriel Bowser,
sponsor and vote in favor of this important Enacted in 1977, the Community Reinvest-
Washington, DC; Regina Romero, Tucson,
resolution. Defending civil rights and pro- ment Act (CRA) has been vital in fighting
AZ; Geoff Kors, Palm Springs, CA;
tecting communities ravaged by redlining redlining, a practice that systematically—
Acquanetta Warren, Fontana, CA; Michael B.
and systemic racism has never been more and for decades, as a matter of federal pol-
Hancock, Denver, CO; Mike Duggan, Detroit,
important. icy—shut neighborhoods of color and lower-
MI; Leirion Gaylor Baird, Lincoln, NE; Thank you for your concern regarding income communities out from home loans
Keisha Lance Bottoms, Atlanta, GA; Greg these issues and your consideration of our and other essential financial services. The
Fischer, Louisville, KY; Victoria Woodards, views. CRA requires banks to undertake reasonable
Tacoma, WA; Tim Keller, Albuquerque, NM; Very Truly Yours, efforts to lend to and invest in all of the
Patrick L. Wojahn, College Park, MD; Louis KEVIN STEIN, neighborhoods in areas where they do busi-
‘Woody’ L. Brown, Largo, FL; Ted Wheeler, Deputy Director. ness. The law has helped to spur increased
Portland, OR; Erin J. Mendenhall, Salt Lake Abundant Housing LA, AnewAmerica Com- investments in formerly-redlined commu-
City, UT; Daniel J. Stermer, Weston, FL; munity Corporation, Asian Pacific Islander nities. It did not, however, prevent non-bank
John Cranley, Cincinnati, OH; Lori E. Light- Small Business Program, ASIAN, Inc., lenders (who are not subject to the CRA)
foot, Chicago, IL; Carolyn G. Goodman, Las CAARMA Consumer Advocates Against Re- from flooding communities of color with
Vegas, NV; Christina Muryn, Findlay, OH; verse Mortgage Abuse, Cabrillo Economic toxic subprime mortgages in the years before
James Allen Joines, Winston-Salem, NC; Development Corporation, California Capital the 2008 crisis; and research shows that ra-
Sam Liccardo, San Jose, CA; Jon Mitchell, Financial Development Corporation, Cali- cial disparities in lending—which cannot be
New Bedford, MA; Robert Restaino, Niagara fornia Coalition for Rural Housing, Cali- explained away by differences in credit
Falls, NY; Chris Koos, Normal, IL; Lily Mei, fornia Housing Partnership, California Rein- scores—persist to this day.
Fremont, CA; Bridget Donnell Newton, vestment Coalition, California Resources It is clear that the CRA needs to be mod-
Rockville, MD; Jeffrey Z. Slavin, Somerset, and Training, CAMEO—California Associa- ernized and strengthened in order to fulfill
MD; Bernard ‘Jack’ C. Young, Baltimore, tion for Micro Enterprise Opportunity, its original purpose. But in January, the
MD; Kenneth D. Miyagishima, Las Cruces, CCEDA, CDC Small Business Finance, Center OCC and the Federal Deposit Insurance Cor-
NM; Carol Dutra-Vernaci, Union City, CA; for Responsible Lending, CHOC, City Heights poration (FDIC) published a Notice of Pro-
Mary Casillas Salas, Chula Vista, CA; Lucy Community Development Corp, City of Liv- posed Rulemaking (NPRM) that would in-
K. Vinis, Eugene, OR; Thomas ‘Tom’ C. ingston, Coachella Valley Housing Coalition, stead significantly weaken the CRA. The
Henry, Fort Wayne, IN; Debra March, Hen- Coalition for Economic Survival (CES), Com- agencies proposed new overly simplistic
derson, NV; Andrew J. Ginther, Columbus, munity Housing Development Corporation, metrics system that would make it far easier
OH; Kevin McKeown, Santa Monica, CA; Community Economics, Consumers for Auto for banks to pass their CRA exams by mak-
Anne McEnerny-Ogle, Vancouver, WA; Mi- Reliability and Safety, East Bay Asian Local ing large investments in communities where
chael Vandersteen, Sheboygan, WI; David Development Corporation, East Bay Housing they can reap the largest rewards, rather
Anderson, Kalamazoo, MI; Melvin Carter, St. Organizations (EBHO), Fair Housing Advo- than carefully-targeted, smaller investments
Paul, MN; Ashira Mohammed, Pembroke cates of Northern California, Faith and Com- in underserved consumers and neighbor-
Park, FL; Amy Bublak, Turlock, CA; Daniel munity Empowerment (formerly KCCD), hoods.
Rivera; Lawrence, MA; William ‘Bill’ Family Financial Well-Being Collaborative— Even before the NPRM was published, a
Edwards, South Fulton, GA; Richard C. Ventura County CA, Fresno CDFI dba Access wide range of stakeholders weighed in with
David, Binghamton, NY; Katrina Foley, Plus Capital, Home Preservation and Preven- both the OCC and FDIC to raise concerns and
Costa Mesa, CA; Shari Cantor, West Hart- tion Inc DBA HPP Cares, Housing Rights to ask for more data justifying the changes.
ford, CT; Rex Hardin, Pompano Beach, FL; Center, LA Forward, Law Foundation of Sil- Those concerns were not addressed, and the
Tracy Johnson, Lockington, OH. icon Valley, Los Angeles LDC, Main Street data was never released. By the time the
Launch, Merritt Community Capital Cor- NPRM was published, the United States and
CALIFORNIA REINVESTMENT COALITION, poration, Mission Asset Fund (MAF), Mis- the world were just beginning to learn about
June 23, 2020. sion Economic Development Agency the growing threat posed by a dangerous new
CRC AND CA GROUPS SUPPORT H.J. RES. 90 (MEDA), Multicultural Real Estate Alliance respiratory virus. In the coming weeks, it be-
DEAR SPEAKER PELOSI, The California Re- for Urban Change, MyPath, Neighborhood came clear that the virus had not been con-
investment Coalition (CRC) and our member Housing Services of Los Angeles County, tained, and it spread rapidly to multiple
organizations and allies write in strong sup- NeighborWorks Orange County, Non-Profit countries including the United States. As
port of H.J. Res. 90, the Congressional Re- Housing Association of Northern California stakeholders and the public began devoting
view Act Resolution to reverse the harmful (NPH), Opportunity Fund, Oxnard Housing more and more resources and attention to
rule recently finalized by the Office of the Authority, Pahali Community Land Trust, the health, social, and economic fallout of
rfrederick on DSKBCBPHB2PROD with HOUSE
Comptroller of the Currency (OCC) which Public Counsel, Public Good Law Center, the growing pandemic, and many urged the
would gut the Community Reinvestment Act Public Law Center, Reinvent South Stock- OCC and FDIC to temporarily suspend rule-
(CRA). Please find following a letter from ton Coalition, Renaissance Entrepreneurship making not related to COVID–19, the agen-
over sixty (60) California based and Cali- Center, Sacramento Housing Alliance, Sac- cies continued plowing ahead, only agreeing
fornia servicing organizations in support of ramento Housing and Redevelopment Agen- to a one-month extension for comments.
the Resolution. cy, Self-Help Federal Credit Union, Spanish In the days before the deadline for com-
The California Reinvestment Coalition Speaking Unity Council of Alameda County, ments on the rule, it had become clear that
builds an inclusive and fair economy that Inc., Strategic Actions for a Just Economy COVID–19 was proving fatal to communities
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H2578 CONGRESSIONAL RECORD — HOUSE June 26, 2020
of color—the very communities the CRA was States, but it granted whites the ability to nity Reinvestment Act. Thank you for your
intended to help—at a rate several times build wealth through homeownership while consideration.
higher than the population at large; the U.S. denying equal opportunities for families of Sincerely,
Surgeon General warned the public to pre- color to build similar home equity over the CENTER FOR RESPONSIBLE LENDING.
pare for ‘‘our 9/11 moment,’’ and models pre- same period. The inequities that result from Ms. WATERS. Madam Speaker, I
dicted 100,000 or more deaths in the United these discriminatory programs are part of would like to close by thanking Rep-
States alone. Only 41 days after the com- the injustices that today’s people led pro-
tests are demanding are addressed.
resentative MEEKS for his leadership on
ment period ended, and even though only a
minority of commenters voiced support for The CRA imposes continuing and affirma- this issue. I appreciate the support we
the new framework, the OCC rushed through tive obligations on banks to help meet the have received from our colleagues in
a final rule that left it largely intact. The credit needs of the local communities in this effort.
FDIC, to its credit, declined to finalize its which they are chartered and continues to be Make no mistake, unchecked, the
version of the rule at this time. an important tool for fostering access to OCC’s final rule will harm low- income
In the weeks since the OCC finalized its credit for these communities today. The law
has urged banks to more actively lend in
and minority communities that are
rule, our nation has been facing a long-over-
LMI areas; it has also played a key role in disproportionately suffering during
due reckoning with our troubled legacy of
racial and ethnic discrimination. While ensuring bank participation in community this COVID–19 crisis, and it will turn
much of the conversation has rightly been revitalization efforts across the country. the Community Reinvestment Act into
focused on police brutality and the impact of Despite the importance of CRA and the the community disinvestment act.
over-policing in communities of color, this community investment it has spurred, CRA In passing this Congressional Review
rules must be strengthened. The CRA as ap-
conversation is inexorably tied to the lasting
plied has not done nearly enough to revi-
Act resolution, we are not only nul-
economic, social, and legal legacy of red- lifying the OCC rule, but we are send-
talize previously redlined areas and has not
lining and other forms of racial discrimina- ing two clear messages: regulators
made a substantial dent in the lagging home-
tion.
We will not succeed in addressing issues ownership rate for people of color. The white should be focused on protecting the
surrounding law enforcement in commu- homeownership rate is 73.7% while the rate economy from the pandemic and not on
nities of color without also addressing dec- is 44% and 48.9% for Black and Latino bor- removing safeguards, and that after
ades of underinvestment in housing, employ- rowers respectively. Additionally, bank lend- the pandemic, the OCC should go back
ing in LMI communities and communities of
ment, education, health care, transpor- to the drawing board and work with
color has declined dramatically since the
tation, and other factors that, to this day, the Federal Reserve and FDIC to joint-
Great Recession. And existing disparities
have contributed to the longstanding dis- ly issue a new rule that strengthens
will be further perpetuated in the face of the
parities that are once again coming to light. the Community Reinvestment Act and
COVID–19 global public health and economic
Now is certainly not the time to weaken the
most important civil rights laws we have at
crisis. helps low-and moderate-income com-
Unfortunately, the OCC decided to act uni- munities, including communities of
our disposal to correct those disparities. laterally—without the Federal Reserve and
As such, we urge Congress to support H.J. color.
Federal Deposit Insurance Corporation—to
Res. 90, to overturn the OCC’s regulatory at-
issue a structurally flawed final rule that
For over a month now, by the thou-
tack on the Community Reinvestment Act. sands, Americans have been marching
weakens the CRA and will harm low- and
Thank you for your consideration. in the streets for justice. They are
moderate-communities and communities of
Sincerely color. Rather than postpone rulemaking to standing up against racism and fight-
Alianza Nacional de Campesinas, Ameri-
focus on the devastating economic crisis ing for justice for all. Just yesterday,
cans for Financial Reform, Color of Change,
caused by the COVID–19 health pandemic, this House passed historic legislation
Consortium for Citizens with Disabilities
the OCC issued the rule a mere six weeks to reform our Nation’s police forces
Housing Task Force, Consumer Action,
after the closing of the comment period on
Equality California, Impact Fund, The Lead-
its proposed rule despite broad requests for
and the unfair treatment so many peo-
ership Conference on Civil and Human ple of color have experienced at the
delay from community groups, civil rights
Rights, Matthew Shepard Foundation, Na- hands of those meant to serve and pro-
and consumer organizations, and industry.
tional Association for Latino Community The OCC acknowledged in the preamble to tect.
Asset Builders (NALCAB), National Associa- the final rule that most of the comments dis- As we unite to fight against discrimi-
tion of Consumer Advocates, National Com- agreed with the proposal’s approach. Yet, the
munity Reinvestment Coalition, National nation in our criminal justice system,
OCC decided to side with the minority of we must also fight against discrimina-
Community Stabilization Trust, The Na- comments in support of the proposed rule.
tional Council of Asian Pacific Americans The OCC’s rule will harm the communities
tion, disinvestment, and injustice in
(NCAPA), National LGBTQ Task Force Ac- most adversely affected by the current crisis, our financial system and economic in-
tion Fund, National Urban League, Pros- including many families that were hardest justice in our communities. The OCC’s
perity Now, Woodstock Institute. hit by the Great Recession and have yet to rule would encourage disinvestment in
recover. communities of color and lead to red-
JUNE 23, 2020. The final rule imposes an overly simplistic
HOUSE OF REPRESENTATIVES,
lining on a massive scale. We must
evaluation measure that fails to ensure that stand up against this blatant effort to
U.S. Capitol, local banking needs are met, and sanctions
Washington, DC. bank redlining. The rule overvalues the dol- economically disenfranchise hundreds
DEAR REPRESENTATIVE: The Center for Re- lar amount of CRA activities in comparison of low-income and minority commu-
sponsible Lending writes to express our to the quality of such activities and allows nities nationwide.
strong support for H.J. Res. 90, a Congres- banks to earn more credit for easier and So I want to say to my Members on
sional Review Act resolution of disapproval larger investments in communities from the opposite side of the aisle: I have
that will invalidate the Office of the Comp- which they can get the highest return. In-
troller of the Currency (OCC) final rule on
heard this theme that you support the
deed, the rule permits banks to ignore 20% of Community Reinvestment Act but you
the Community Reinvestment Act. their assessment areas and still pass, result-
The Community Reinvestment Act of 1977 ing in unchecked neighborhood disinvest-
don’t support my bill.
(CRA) was one in a series of landmark civil ment and redlining. The rule also disincen- I would say to the Members: You
rights legislation and is a critical tool to tives investment in LMI neighborhoods and can’t have it both ways.
help our nation work toward overcoming the communities of color. It incentivizes activi- Madam Speaker, I ask for an ‘‘aye’’
legacy of redlining. Today’s racial wealth ties and investments that do not ‘‘pri- vote on H.J. Res. 90, and I yield back
gap and lending disparities are in large part marily’’ benefit LMI communities, such as the balance of my time.
the result of decades of government policies large-scale infrastructure projects. Esti-
and practices that enabled the redlining of Mr. GREEN of Texas. Madam Speaker, I
mating such projects’ impact on LMI neigh-
communities of color for most of the 20th borhoods is difficult and thus will likely di-
submit the following letters to be included in
century. In the post-Depression era, federal vest funds away from smaller scale, yet the debate on H.J. Res. 90. The following let-
policies that created housing opportunities impactful community development activi- ters express support for H.J. Res. 90.
for returning veterans and their families ex- ties. Furthermore, the rule reduces the im- NATIONAL COMMUNITY
rfrederick on DSKBCBPHB2PROD with HOUSE
plicitly excluded people of color from the portance of retail lending and retail services, REINVESTMENT COALITION,
benefits of government-supported housing resulting in less lending and investments in June 23, 2020.
programs. Among these programs were pub- communities that are already credit starved. HOUSE OF REPRESENTATIVES,
lic housing, the Home Owners’ Loan Corpora- The rule is opposite to the CRA’s statutory U.S. Capitol,
tion (HOLC), and mortgage insurance mission and will cause deep harm to commu- Washington, DC.
through the Federal Housing Administration nities. DEAR REPRESENTATIVE: On behalf of the
(FHA). Not only did this redlining segregate We urge support for H.J. Res. 90 to reverse undersigned organizations, we are writing to
residential neighborhoods across the United the OCC’s regulatory attack on the Commu- urge you to cosponsor and support H.J. Res.
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June 26, 2020 CONGRESSIONAL RECORD — HOUSE H2579
90, a disapproval resolution that would over- fornia Resources and Training; CDC Small ness Outreach Center Network; Center for
turn a poorly constructed rule change on the Business Finance; EAH Housing; Grounded NYC Neighborhoods; Chhaya Community De-
Community Reinvestment Act (CRA) hastily Solutions Network; High Impact Financial velopment Corporation; Community Capital
finalized in May, days before Comptroller Analysis, LLC; Peoples’ Self-Help Housing; New York; Community Development Ven-
Otting’s resignation from the agency, and The Greenlining Institute; VEDC. ture Capital Alliance; CNY Fair Housing,
published this month. COLORADO Inc.; Community Loan Fund of the Capital
At the outset, it is critical to note that the Region, Inc.; Fair Finance Watch; Fidelis
Trump Administration is split on the CRA Urban Land Conservancy.
Federal Credit Union; Fifth Avenue Com-
final rule. With a lack of interagency coordi- CONNECTICUT mittee; Genesee Co-op FCU; Greater Jamaica
nation among the nation’s bank regulators, Neighborhood Housing Services of Water- Development Corporation; Habitat for Hu-
different banks will be held to different rein- bury. manity New York City; Habitat NYC Com-
vestment standards depending on their regu- DISTRICT OF COLUMBIA munity Fund; La Fuerza CDC; Neighbors
lator—an outcome that both banks and advo- Helping Neighbors; NYS CDFI Coalition;
cates have cautioned against. Federal Re- Africa Diaspora Directorate.
Oswego County Federal Credit Union;
serve Chairman Jerome Powell testified just DELAWARE PathStone Enterprise Center, Inc.; Renais-
last week that he expects the agency to Delaware Community Reinvestment Ac- sance Economic Development Corp.; The
move forward with CRA updates intended to tion Council, Inc.; Edgemoor Revitalization Knowledge House; Three Jewels Outreach
garner ‘‘broad support among the commu- Cooperative, Inc.; The Ministry of Caring Center; University Neighborhood Housing
nity of intended beneficiaries’’ something he Inc. Program.
considers to be ‘‘one non-negotiable condi-
FLORIDA OHIO
tion for it.’’ The OCC’s final rule achieved no
such support or consensus. The vast majority Affordable Homeownership Foundation, Cleveland Neighborhood Progress; Colum-
of public comments—about 90 percent—op- Inc.; Community Reinvestment Alliance of bus Compact dba Columbus Empowerment
posed the CRA evaluation measure and pre- South Florida; Goldenrule Housing & Com- Corp.; County Corp.; Homes on the Hill, CDC;
sumptive ratings framework that remains at munity Development Corp Inc; Metro North Ohio CDC Association; The Fair Housing
the heart of the final rule, but the OCC Community Development Corp.; Solita’s Center for Rights & Research; Working In
adopted it anyway. House. Neighborhoods.
The OCC’s final rule makes a series of HAWAII OREGON
changes to the CRA regulatory framework Hawai‘i Alliance for Community-Based Housing Oregon.
that reduce incentives for banks to lend to Economic Development. PENNSYLVANIA
low-and-moderate income (LMI) families and
ILLINOIS Amani Christian Community Develop-
invest and serve LMI communities: home
Accion Serving Illinois & Indiana; Chicago ment; Beltzhoover Consensus Group; Berks
buyers and homeowners, small businesses,
Community Loan Fund; Chicago Rehab Net- Latino Workforce Development Corporation
community development projects that pri-
work; Housing Action Illinois; NW (BLWDC); Bloomfield-Garfield Corporation;
marily benefit and serve LMI people. It also
HomeStart, Inc.; Woodstock Institute. Chester Community Improvement Project;
expands the number of banks that will have
Fair Housing Rights Center in Southeastern
no review of how they open and close bank INDIANA Pennsylvania; Good Bricks Ventures LLC;
branches and provide key bank services in Continuum of Care Network NWI, Inc.; Hilltop Alliance; Housing Committee; Jave
LMI and underserved neighborhoods.
HomesteadCS; Legacy Foundation; Pros- Jive Coffee LLC; Mount Washington Commu-
These harmful changes could not come at a
perity Indiana. nity Development Corporation; Northside
worse time. The ongoing COVID–19 pandemic
and widespread social unrest that is gripping KENTUCKY Leadership Conference; PHDA Pittsburgh
the nation has hit LMI and communities of River City Housing. Housing Development Association, Inc.;
color the hardest and brought gapping dis- Philadelphia Association of Community De-
LOUISIANA
parities to the forefront. The changes to the velopment Corporations; Pittsburgh Commu-
CRA being pushed through by the OCC would Multi-Cultural Development Center. nity Reinvestment Group; Rising Tide Part-
do little to address the pressing national pri- MASSACHUSETTS ners; Southwest CDC; The Enterprise Center;
orities of reducing the racial wealth gap, of Greater Boston Legal Services, Massachu- Tube City Renaissance; Wilkinsburg Commu-
better serving those traditionally under- setts Affordable Housing Alliance. nity Development Corporation.
served by the nation’s financial system or MARYLAND
RHODE ISLAND
stimulating an economic recovery from HousingWorks RI.
COVID–19 that is equitable. While the OCC African American Chamber of Commerce
TEXAS
claims its aim is to increase CRA activity, of Montgomery County, Maryland Consumer
Rights Coalition, Maryland Consumer Rights Our Casas Resident Council INC., Recon
the lack of interagency agreement among Foundation, Southern Dallas Progress Com-
this Administration’s regulators should Coalition, Rebirth Inc., Residential Housing
Counseling Agency. munity Development Corporation.
serve as a dire warning about that claim. We
MAINE UTAH
do not yet know the full impact of COVID–19
on local mortgage markets, small business Rocky Mountain Community Reinvest-
Coastal Enterprises, Inc.
resiliency, or how LMI households, neighbor- ment Corporation.
MICHIGAN
hoods, local jobs, and key sectors will re- WASHINGTON
cover. Weakening CRA at this moment is a Fair Housing Center of Metropolitan De- Low Income Housing Institute.
blueprint for a crisis after the crisis. troit, GenesisHOPE, Habitat for Humanity of
WISCONSIN
For all these reasons and more, we urge Michigan, Southwest Economic Solutions.
Citizen Action of Wisconsin; Disability
you to cosponsor H.J. Res. 90 and support it MISSOURI
Justice; Metropolitan Milwaukee Fair Hous-
when it is considered on the House floor. Metropolitan St. Louis Equal Housing and ing Council; Movin’ Out, Inc.; United Com-
Sincerely, Opportunity Council. munity Center; Urban Economic Develop-
NATIONAL GROUPS MISSISSIPPI ment Association of Wisconsin (UEDA);
National Community Reinvestment Coali- Hope Enterprise Corporation, Montgomery Washington Park Housing Comm; YWCA
tion (NCRC): AFL–CIO, Americans for Finan- Citizens United for Prosperity (MCUP). Southeast Wisconsin; Revitalize Milwaukee.
cial Reform, Center for Community
Progress, Consumer Action, Local Initiatives MONTANA
NATIONAL HOUSING CONFERENCE,
Support Corporation (LISC), NACEDA, Na- Montana Fair Housing, Inc. Washington, DC, June 22, 2020.
tional Association for Latino Community NORTH CAROLINA Hon. NANCY PELOSI,
Asset Builders (NALCAB), National Housing Reinvestment Partners. Speaker, House of Representatives,
Resource Center, National Housing Trust, Washington, DC.
National NeighborWorks Association, Na- NEW JERSEY DEAR SPEAKER PELOSI: I am writing on be-
tional Urban League, Prosperity Now, The NCRC Housing Rehab Fund, LLC; New Jer- half of the National Housing Conference
Leadership Conference on Civil and Human sey Association on Correction; New Jersey (NHC) to express our strong support for H.J.
Rights, UnidosUS. Citizen Action; New Jersey Community Cap- Res. 90, the Congressional Review Act resolu-
ital. tion of disapproval of the Community Rein-
rfrederick on DSKBCBPHB2PROD with HOUSE
ALABAMA
Titusville Development Corporation. NEW MEXICO vestment Act (CRA) final rule.
The Office of the Comptroller of the Cur-
ARIZONA Southwest Neighborhood Housing Services.
rency (OCC) has issued its final CRA rule
Arizona Housing Coalition, Local First Ar- NEW YORK just six weeks after the end of the comment
izona, Local First Arizona Foundation. Association for Neighborhood and Housing period on the Notice of Proposed Rule-
CALIFORNIA Development (ANHD); Banana Kelly Commu- making (NPR) and amid the worst health
California Coalition for Rural Housing; nity Improvement Association; Beaulac As- and economic crisis of our lifetimes. Imple-
California Reinvestment Coalition; Cali- sociates LLC; BOC Capital Corp. CDFI; Busi- mentation of this rule poses a material
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H2580 CONGRESSIONAL RECORD — HOUSE June 26, 2020
threat to our recovery from the COVID–19 re- HOPE, The final rule is deeply problematic and fun-
cession and undercuts the purpose and intent June 23, 2020. damentally flawed.
of CRA, harming underserved communities Hon. NANCY PELOSI, To paraphrase FDIC Board Member Martin
throughout the nation. Speaker of the House, Gruenberg’s statement on December 12, 2019,
As NHC stated in its formal comment let- House of Representatives. in opposition to the proposed rule, the pro-
ter on the CRA NPR on April 8, we have no SUPPORT FOR H.J. RES. 90 posed rule severely undermines what has
idea how severely the pandemic will impact been a core strength of CRA for 40 years—the
HOPE (Hope Enterprise Corporation/Hope
our economy, the financial system and com- encouragement of bank engagement and dia-
Credit Union/Hope Policy Institute) supposes
munities throughout the nation. Committing logue with stakeholders in local commu-
H.J Res. 90, providing for congressional dis-
resources to regulatory initiatives that do nities, including community-based organiza-
approval of the Office of the Comptroller of
not directly support our national response to tions, community development corporations,
the Currency’s (OCC) final rule overhauling
the COVID–19 pandemic is a dangerous dis- and others, to understand and better serve
the Community Reinvestment Act.
traction: On April 27, NHC joined 14 other historically underserved areas. For this rea-
HOPE is a Black-led, women-owned com-
major national organizations, including the son and more, we support your committee’s
munity development financial institution,
National Association of REALTORS and the Congressional Review Act resolution to over-
credit union, and policy institute in Jack-
National League of Cities, to urge regulators turn the rule change.
son, Mississippi. HOPE was established 25
to refrain from committing resources to reg- Sincerely,
years ago to ensure that all people regardless
ulatory initiatives that do not directly sup- FRANK WOODRUFF,
of where they live, their gender, race or
port our national response to the COVID–19 Executive Director,
place of birth have the opportunity to sup-
pandemic. National Alliance of
port their families and realize the American
Community Eco-
Notably, the Federal Deposit Insurance Dream. HOPE has generated over $2.5 billion
nomic Development
Corporation (FDIC) and the Federal Reserve in financing that has benefitted more than
Associations.
Board refused to join the OCC on this ill- 1.5 million people throughout Alabama, Ar-
timed decision. As FDIC Chairman Jelena kansas, Louisiana, Mississippi and Ten- The SPEAKER pro tempore. All time
McWilliams noted in her March 19, 2020 let- nessee. for debate has expired.
ter to the Financial Accounting Standards The Community Reinvestment Act (CRA) Pursuant to House Resolution 1017,
Board, financial institutions ‘‘will face has been a critical tool for HOPE to leverage the previous question is ordered.
unique difficulties over the coming weeks the resources it needs to serve low-income The question is on the engrossment
and months to adequately staff customer- communities, rural communities, and com- and third reading of the joint resolu-
facing functions; ensure that deposit, loan, munities of color in the Deep South. Unfor- tion.
and IT systems operate normally; help bor- tunately, the OCC’s final rule moves the The joint resolution was ordered to
rowers that are experiencing unanticipated CRA—and economic opportunity for our
communities—further out of reach in three
be engrossed and read a third time, and
cash flow difficulties; and address the earn-
ings and capital implications of near zero ways: was read the third time.
percent interest rates and a potential surge Incenting larger, easier activities, poten- The SPEAKER pro tempore. The
in borrowers who are unable to meet con- tially reducing the smaller, more intensive question is on the passage of the joint
tractual payment terms.’’ We could not investments that Deep South communities resolution.
agree more. so often need, The question was taken; and the
CRA modernization is a once-in-a-genera- Deprioritizing meaningful CRA activities Speaker pro tempore announced that
tion opportunity. There is much to improve, in the country’s most distressed commu- the ayes appeared to have it.
as the law and most recent regulations were nities, and Ms. WATERS. Madam Speaker, on
written before the proliferation of interstate Diverting investments to activities far
from the CRA’s original intent of redressing
that I demand the yeas and nays.
banking, internet banking and the revital- The SPEAKER pro tempore. Pursu-
ization of America’s cities; the latter being redlining.
As just one example, the OCC’s failure to ant to section 3 of House Resolution
the opposite trend of one of the two major 965, the yeas and nays are ordered.
prioritize bank branches in low-income and
reasons for CRA’s adoption—urban disinvest-
rural areas will be acutely felt in the Deep Pursuant to clause 8 of rule XX, fur-
ment—as well as the stubborn persistence of
redlining and its legacy impact. Instead, the
South, where already much of the region is ther proceedings on this question will
already in a banking desert and includes be postponed.
OCC has pursued an entirely new system
areas with the highest percentage of persons
that will gut CRA’s effectiveness for years f
who are unbanked in the United States. Mis-
and undercut broader efforts to address the
very issues that Congress attempted to solve
sissippi and Louisiana, with over 15% of HONORING THE LIFE OF MARNY
unbanked residents, have the highest per- XIONG
in 1977, and still struggles with today.
centage among all states. The rate of
The OCC’s rule has received nearly uni- unbanked Black households is even higher,
(Ms. MCCOLLUM asked and was
versal condemnation. Using its ratio-driven at 28% both states. As made plain during given permission to address the House
approach, banks will be powerfully incented COVID–19, these disparities in access to for 1 minute and to revise and extend
to make only the largest investments in banking relationships lay the foundation for her remarks.)
communities that need it the least, and may broader disparities in access to capital for Ms. MCCOLLUM. Madam Speaker, I
also fuel the displacement of those people small businesses and individuals. rise today to honor the life of Marny
who need it the most. This rule eliminates Ultimately, the OCC’s final rule widens the
the fundamental value of CRA, which at its
Xiong, the chairwoman of the Saint
wealth gap and further inhibits economic op- Paul Public Schools Board of Edu-
best, levels the playing field between large, portunity in already hard-pressed areas of
highly profitable investments, and the hard- cation, who passed away from COVID–
the country, particularly here in the Deep
er and smaller but still profitable deals that South. 19 on June 7 at the age of 31. We mourn
often have disproportionately positive im- the loss of this young woman, a rising
pact on communities; and are by their na- NATIONAL ALLIANCE OF COMMUNITY star whose legacy was an inspiration to
ture, harder to get an allocation of capital ECONOMIC DEVELOPMENT ASSOCIA- us all.
from a bank that we want to be governed by TIONS, Marny was a trailblazing activist and
a culture that focuses on a risk-weighted re- June 23, 2020. a proud member of Saint Paul’s Hmong
turn. REPRESENTATIVE MAXINE WATERS, community. She was a dedicated advo-
CRA modernization is long overdue and Chairwoman, House Financial Services Com- cate for young people, and she stood up
needs to be done so banks and communities mittee, Washington, DC.
get the clarity and flexibility they need to DEAR CHAIRWOMAN WATERS: Thank you for
for equality and racial justice. She un-
ensure it has the maximum positive impact. leading and actively supporting H.J. Res. 90, derstood the disparities that students
But no modernization effort is worth gutting a disapproval resolution to overturn the of color face in our State, and she
the central purpose of CRA—constructive re- Community Reinvestment Act rule change worked to make sure that every child
investment in the communities that need it finalized by the Office of the Comptroller of had an opportunity to succeed.
most. Consequently, the National Housing the Currency (OCC) in May 2020. The Na- As chairwoman of the board, her
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Conference strongly supports H.J. Res. 90 tional Alliance of Community Economic De- leadership was critical to successfully
and hope that once this unprecedented na- velopment Associations (NACEDA) and our resolving the district’s first ever teach-
tional crisis is behind us, we can all work to- members find the OCC’s final rule deeply
ers’ strike. When confronted with the
gether to fully realize the purpose and intent problematic for low and moderate-income
of CRA. communities for the reasons outlined in our COVID–19 pandemic, Marny helped to
Sincerely, public comment letter dated April, 8, 2020. steer the district’s unprecedented tran-
DAVID M. DWORKIN, The final rule addresses very few of the sition to distance learning for 37,000
President and CEO. concerns we expressed in our April letter. students.
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