by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX / SDNY COURT, Sept 12 – The Community Reinvestment Act directs bank regulators to consider banks' records of lending in poor neighborhoods when they apply to expand with mergers or, right in the statute, branches ("deposit facilities").
But now the Federal Deposit Insurance Corporation is quietly moving to eliminate public notice of, and public comment on, banks' branch applications. While Inner City Press has Freedom of Information Act requests pending, Fair Finance Watch on August 30 commented to the FDIC, on the proposed change - and on sample current branch applications pending.
On August 21, in part to forestall the Federal Reserve using the same twisted logic of "few comments so let's eliminate public notice," Fair Finance Watch filed a branch comment with the Federal Reserve Bank of St. Louis on the pending application by Arkansas-based First Security Bank to open a branch at 4001 Rodney Parham Road in Little Rock, noting that First Security Bank in Arkansas in 2024 it made 1030 mortgage loans to whites and denied only 120 applications, 1 to 9. For African Americans, only 17 loans and fully 10 denials: approximately 1 to 1.7.
On September 11 First Security Bank vaguely responded, pointing to a 2023 CRA Performance Evaluation 1) that did not consider the 2024 HMDA data. 2) that PE states, inter alia, Distribution on loans in non-MSA Arkansas is "Poor" (id. at 10); on the Investment Test in Jonesboro, Hot Springs and Fort Smith is "Below" (id. at 13); in the same Jonesboro and Hot Springs communities, accessibility of delivery systems are "Below." Community Development Services in Jonesboro, also "Below." Fair Finance Watch reiterates its request for hearings, and denial. See also, Inner City Press' op-ed in the American Banker here
There will be more.
This proposal to eliminate public notice and comment on branch applications must be withdrawn - or sued.
Watch this site.
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