77th Annual Meeting

PRESERVING AND EXPANDING THE COMMUNITY REINVESTMENT ACT

WHEREAS, the Community Reinvestment Act (CRA) has been one of the most important laws for building wealth and revitalizing neighborhoods requiring banks to meet the credit needs of all communities consistent with safety and soundness; and

WHEREAS,CRA encourages banks to respond to a variety of needs in low- and moderate-income communities, which includes the financing of affordable rental housing, sustainable homeownership, small business creation, and economic development projects; and

WHEREAS, since 1996, banks have made community development loans totaling more than $407 billion, small business loans of more than $581 billion in low- and moderate-income neighborhoods from 1996 through 2007; and

WHEREAS, CRA mitigates foreclosures by providing points to banks for foreclosure prevention efforts including counseling and loan modification, and when necessary penalizing banks for making loans that are unfair and deceptive; and

WHEREAS, CRA modernization legislation would bolster the accountability of banks to all communities by requiring CRA exams in the great majority of geographical areas banks serve; and

WHEREAS, an expanded CRA would address racial disparities in lending by requiring CRA exams to explicitly consider lending and services to minorities in addition to low- and moderate-income communities; and

WHEREAS, a strengthened CRA would require federal regulatory agencies to hold more public hearings and meetings when banks merge; and

WHEREAS, a modernized CRA would enhance small business and Home Mortgage Disclosure Act(HMDA)data; and

WHEREAS, an expanded CRA would apply CRA to a variety of non-bank institutions including mortgage companies, insurance companies, and investment banks,

NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors calls on Congress to pass an expanded Community Reinvestment Act (CRA) that would leverage substantial sums of additional credit and capital for America's working families and communities.