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- PROVIDING FOR CONGRESSIONAL groups issued a statement noting: ‘‘The ground. The law requires banks to in- DISAPPROVAL OF RULE SUB- new OCC rules stick with an overly vest and lend responsibly in low- and MITTED BY OFFICE OF THE simplistic metrics system that creates moderate-income communities where COMPTROLLER OF THE CUR- a loophole for banks to exploit, allow- they are chartered. RENCY RELATING TO ‘‘COMMU- ing them to get a passing CRA rating Unfortunately, implementation of by making investments in commu- NITY REINVESTMENT ACT REGU- the Community Reinvestment Act has LATIONS’’ nities where they can reap the largest 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. ganizations led by the Leadership Con- House. Despite the warnings of a wide range 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 tain regulatory approval for OneWest the Trump administration to weaken ‘‘Community Reinvestment Act Regula- our civil rights laws and send a strong tions’’ (85 Fed. Reg. 34734; published June 5, Bank, a bank that he ran with Treas- 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. expense of smaller and more contin- which to revise and extend their re- Madam Speaker, I reserve the bal- uous financial transactions that truly marks on H.J. Res. 90 and to insert ex- ance of my time. benefit LMI communities. traneous material thereon. Mr. MCHENRY. Madam Speaker, I The SPEAKER pro tempore. Is there For example, the OCC final rule al- yield myself such time as I may con- objection to the request of the gentle- lows CRA credit to be given for activi- sume, and I rise in opposition to the woman from California? ties in LMI-qualified opportunity 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 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

VerDate Sep 11 2014 08:57 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00053 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.073 H26JNPT1 rfrederick on DSKBCBPHB2PROD with HOUSE 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 This list will eliminate regulatory as the other bank regulators, with of the CRA activities of individual ambiguity and provide certainty over issuing rules to carry out that purpose. 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. investments. That is how capitalism I think we can all agree that a lot I would also note that this final rule works. This change alone is likely to has changed in the past 25 years, in- is a culmination of a multiyear proc- increase community reinvestment cluding how banks can best serve their ess. It reflects more than a decade of across the board. communities. Much of this change has 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 Banks will be incentivized to invest In 1995, it was cutting edge when you submitted to Congress in 2017 and rec- where they take deposits instead of could call your bank and get your bal- ommendations released by the Treas- only around their branches. Let me ex- ance and the last couple of checks that ury Department in April of 2018 and plain. cleared your account. Calling up and Previously, a bank was only evalu- more than 75 hard comments submitted not having to talk with somebody and ated on its lending and investment in during the rulemaking process that up- a computer tell you the answer, that an area around its physical footprint, dated and changed and made better the was cutting edge. And at that time, but banking today is very different regulations that the administration only 24 percent of Americans had than it was a generation ago when this put forward. accessed the internet. regulation was written. Banking today, Republicans and Democrats agree the Since that time, we have witnessed a with the help of new technology and in- Community Reinvestment Act is ex- massive shift to online and mobile de- novation has changed substantially. tremely important, it is an important livery of banking services, and that is So, if an online bank chooses a head- law. And because it is important, the for good in many, many ways. This quarters in one State—let me give you regulations need to keep pace with how virus has really enhanced that trend an example: Utah. Americans bank today. 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- So, if you have that headquarters for ance of my time. 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- a healthy diet. mitted by the Office of the Comptroller 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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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 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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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- sition to H.J. Res. 90, but I rise in sup- meaningful way for 25 years. We have 8 form in the long run. years on that on this particular issue. Ms. WATERS. Madam Speaker, I port of the Community Reinvestment Act. And I rise in support of the goal of So in May of this year, the Office of yield 2 minutes to the gentleman from CRA, for a fair and more equitable the Comptroller of the Currency issued Washington (Mr. HECK), a senior mem- treatment of financial investment, par- a final rule that modernizes the Com- 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 Yet, in the middle of a pandemic that 1995. b 1645 Working for a publicly traded bank has made racial disparities all the As we work to ensure a strong eco- in Arkansas then, I was involved in the more pronounced, the OCC rushed out a nomic recovery for all Americans—all 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 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

VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00056 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.078 H26JNPT1 rfrederick on DSKBCBPHB2PROD with HOUSE 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. GARCI´A), 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. GARCI´A 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- 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

VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00057 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.081 H26JNPT1 rfrederick on DSKBCBPHB2PROD with HOUSE 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 date. RECORD multiple letters from dozens of 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, tions to continue to provide services THE COMPTROLLER OF THE CUR- our Nation has embarked on a true, for those most in need. The OCC’s final RENCY, broad-based push to defeat institu- rule will play an important role in this Washington, DC. tional racism. America is coming to re- recovery effort by encouraging more Attention: Comment Processing 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- ices in the communities hardest hid by posit Insurance Corporation (FDIC) and the civil rights. It is still very much with 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 the credit needs of communities where banks matters, and Black businesses matter. builds in nearly all of the constructive criticism the agency has received do business. Discrimination in lending still My hometown of south St. Peters- exists. burg, Florida, is blessed by a large and through the open comment process. In fact, this shows the agency is willing But the FDIC and OCC proposed changes vibrant Black community where, de- 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 banking received most of their deposits capital. Woodson African American Museum. It 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 ers of Chief’s Creole, the Brayboys, that branches are less vital than they community development loans that support 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 down in our States because our States income communities. they didn’t qualify, but because the big 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 they don’t have skin in the game, how other and be thoughtful in our ap- the economy. For example, independent 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 is a very straightforward up-and-down. mortgages in our nation. If anything, the That is why the Community Rein- 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. Mr. MCHENRY. Madam Speaker, I re- the urban communities in America. Sincerely, serve the balance of my time. Vote against this resolution and sup- Justin Wilson, Alexandria, VA; Satya Ms. WATERS. Madam Speaker, if Mr. Rhodes-Conway, Madison, WI; Alan L. Nagy, 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.

VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00058 Fmt 4636 Sfmt 0634 E:\CR\FM\K26JN7.083 H26JNPT1 rfrederick on DSKBCBPHB2PROD with HOUSE 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- Lauderdale Lakes, FL; Eric Johnson, Dallas, view Act resolution of disapproval that will owners, tenants and small businesses. The TX; Mark W. Mitchell, Tempe, AZ; Tom nullify a rulemaking by the Office of the OCC takes this damaging action during a Dailly, Schaumburg, IL; Andy Berke, Chat- Comptroller of the Currency (OCC) that, if pandemic that has had a disproportionate tanooga, TN; Pauline Russo Cutter, San allowed to stand, would drastically under- impact on the very communities meant to Leandro, CA; Steve Gawron, Muskegon, MI; mine one of our nation’s most important benefit from CRA. William Peduto, Pittsburgh, PA; Lioneld civil rights laws, the Community Reinvest- We urge all members of Congress to co- Jordan, Fayetteville, AR; Muriel Bowser, ment Act of 1977 (the CRA). 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 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

VerDate Sep 11 2014 07:04 Jun 27, 2020 Jkt 099060 PO 00000 Frm 00059 Fmt 4636 Sfmt 0634 E:\CR\FM\A26JN7.033 H26JNPT1 rfrederick on DSKBCBPHB2PROD with HOUSE 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- resentative MEEKS for his leadership on ment period ended, and even though only a tests are demanding are addressed. 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- disproportionately suffering during due reckoning with our troubled legacy of LMI areas; it has also played a key role in 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 conversation is inexorably tied to the lasting rules must be strengthened. The CRA as ap- Act resolution, we are not only nul- plied has not done nearly enough to revi- economic, social, and legal legacy of red- talize previously redlined areas and has not lifying the OCC rule, but we are send- lining and other forms of racial discrimina- made a substantial dent in the lagging home- ing two clear messages: regulators 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 ment, education, health care, transpor- ing in LMI communities and communities of to the drawing board and work with color has declined dramatically since the tation, and other factors that, to this day, Great Recession. And existing disparities the Federal Reserve and FDIC to joint- have contributed to the longstanding dis- will be further perpetuated in the face of the ly issue a new rule that strengthens parities that are once again coming to light. COVID–19 global public health and economic the Community Reinvestment Act and Now is certainly not the time to weaken the crisis. most important civil rights laws we have at 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. weakens the CRA and will harm low- and sands, Americans have been marching Thank you for your consideration. moderate-communities and communities of in the streets for justice. They are Sincerely color. Rather than postpone rulemaking to standing up against racism and fight- Alianza Nacional de Campesinas, Ameri- focus on the devastating economic crisis cans for Financial Reform, Color of Change, ing for justice for all. Just yesterday, caused by the COVID–19 health pandemic, Consortium for Citizens with Disabilities this House passed historic legislation the OCC issued the rule a mere six weeks Housing Task Force, Consumer Action, to reform our Nation’s police forces after the closing of the comment period on Equality California, Impact Fund, The Lead- and the unfair treatment so many peo- its proposed rule despite broad requests for ership Conference on Civil and Human delay from community groups, civil rights ple of color have experienced at the Rights, Matthew Shepard Foundation, Na- and consumer organizations, and industry. hands of those meant to serve and pro- 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 nation in our criminal justice system, munity Reinvestment Coalition, National OCC decided to side with the minority of Community Stabilization Trust, The Na- we must also fight against discrimina- comments in support of the proposed rule. tion, disinvestment, and injustice in tional Council of Asian Pacific Americans The OCC’s rule will harm the communities (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 lining on a massive scale. We must HOUSE OF REPRESENTATIVES, 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- heard this theme that you support the troller of the Currency (OCC) final rule on 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- Mr. GREEN of Texas. Madam Speaker, I and practices that enabled the redlining of 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 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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COLORADO Inc.; Community Loan Fund of the Capital At the outset, it is critical to note that the Region, Inc.; Fair Finance Watch; Fidelis Urban Land Conservancy. Trump Administration is split on the CRA 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- Africa Diaspora Directorate. Helping Neighbors; NYS CDFI Coalition; cates have cautioned against. Federal Re- 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 Amani Christian Community Develop- invest and serve LMI communities: home ILLINOIS ment; Beltzhoover Consensus Group; Berks buyers and homeowners, small businesses, Accion Serving Illinois & Indiana; Chicago Latino Workforce Development Corporation community development projects that pri- Community Loan Fund; Chicago Rehab Net- (BLWDC); Bloomfield-Garfield Corporation; marily benefit and serve LMI people. It also work; Housing Action Illinois; NW Chester Community Improvement Project; expands the number of banks that will have HomeStart, Inc.; Woodstock Institute. 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- These harmful changes could not come at a Jive Coffee LLC; Mount Washington Commu- perity Indiana. worse time. The ongoing COVID–19 pandemic nity Development Corporation; Northside 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.; Philadelphia Association of Community De- color the hardest and brought gapping dis- 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. RHODE ISLAND served by the nation’s financial system or MARYLAND stimulating an economic recovery from HousingWorks RI. COVID–19 that is equitable. While the OCC African American Chamber of Commerce of Montgomery County, Maryland Consumer TEXAS claims its aim is to increase CRA activity, Our Casas Resident Council INC., Recon the lack of interagency agreement among Rights Coalition, Maryland Consumer Rights Coalition, Rebirth Inc., Residential Housing Foundation, Southern Dallas Progress Com- this Administration’s regulators should munity Development Corporation. serve as a dire warning about that claim. We Counseling Agency. UTAH do not yet know the full impact of COVID–19 MAINE Rocky Mountain Community Reinvest- on local mortgage markets, small business Coastal Enterprises, Inc. ment Corporation. resiliency, or how LMI households, neighbor- 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. troit, GenesisHOPE, Habitat for Humanity of blueprint for a crisis after the crisis. WISCONSIN Michigan, Southwest Economic Solutions. For all these reasons and more, we urge Citizen Action of Wisconsin; Disability MISSOURI you to cosponsor H.J. Res. 90 and support it 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 MONTANA Progress, Consumer Action, Local Initiatives 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- ALABAMA ital. tion of disapproval of the Community Rein- 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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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 been a core strength of CRA for 40 years—the idea how severely the pandemic will impact HOPE (Hope Enterprise Corporation/Hope encouragement of bank engagement and dia- our economy, the financial system and com- Credit Union/Hope Policy Institute) supposes logue with stakeholders in local commu- munities throughout the nation. Committing H.J Res. 90, providing for congressional dis- nities, including community-based organiza- resources to regulatory initiatives that do approval of the Office of the Comptroller of tions, community development corporations, not directly support our national response to the Currency’s (OCC) final rule overhauling and others, to understand and better serve the COVID–19 pandemic is a dangerous dis- the Community Reinvestment Act. historically underserved areas. For this rea- traction: On April 27, NHC joined 14 other HOPE is a Black-led, women-owned com- son and more, we support your committee’s major national organizations, including the munity development financial institution, Congressional Review Act resolution to over- National Association of REALTORS and the credit union, and policy institute in Jack- turn the rule change. National League of Cities, to urge regulators son, Mississippi. HOPE was established 25 Sincerely, to refrain from committing resources to reg- years ago to ensure that all people regardless FRANK WOODRUFF, ulatory initiatives that do not directly sup- of where they live, their gender, race or Executive Director, port our national response to the COVID–19 place of birth have the opportunity to sup- National Alliance of pandemic. port their families and realize the American Community Eco- Dream. HOPE has generated over $2.5 billion Notably, the Federal Deposit Insurance nomic Development in financing that has benefitted more than Corporation (FDIC) and the Federal Reserve 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 CRA—and economic opportunity for our rowers that are experiencing unanticipated be engrossed and read a third time, and cash flow difficulties; and address the earn- communities—further out of reach in three 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 that I demand the yeas and nays. from the CRA’s original intent of redressing 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 prioritize bank branches in low-income and 965, the yeas and nays are ordered. 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 South, where already much of the region is redlining and its legacy impact. Instead, the ther proceedings on this question will already in a banking desert and includes OCC has pursued an entirely new system be postponed. 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 sissippi and Louisiana, with over 15% of very issues that Congress attempted to solve HONORING THE LIFE OF MARNY unbanked residents, have the highest per- in 1977, and still struggles with today. XIONG 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 Xiong, the chairwoman of the Saint the fundamental value of CRA, which at its wealth gap and further inhibits economic op- best, levels the playing field between large, Paul Public Schools Board of Edu- portunity in already hard-pressed areas of cation, who passed away from COVID– highly profitable investments, and the hard- 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. for equality and racial justice. She un- get the clarity and flexibility they need to DEAR CHAIRWOMAN WATERS: Thank you for 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 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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