Activist Groups Demandthat Clinton Veto Legislation to Overhaul CRA

WASHINGTON - A dozen community groups have banded together to demand that President Clinton veto legislation that would revamp the Community Reinvestment Act.

In an Oct. 10 letter to Treasury Secretary Robert E. Rubin, the groups accuse House Banking Committee Chairman Jim Leach of sneaking provisions into the regulatory relief bill that would eviscerate the law.

"What they're proposing to do is kill the CRA," said Allen Fishbein, general counsel of the Center for Community Change.

Rep. Leach, R-Iowa, last week removed a number of the most controversial CRA-related provisions from his regulatory relief bill, because of lack of Senate support and the threat of a presidential veto.

These provisions, including one that would let banks with $100 million and $250 million of assets to self-certify compliance with the reinvestment act, are still included in the budget reconciliation-package. This the letter calls "attacking CRA through the back door."

"While Leach's package takes out the most visible pieces of what attacks CRA, the stuff that's still in there is devastating," said Lisa Donner, legislative representative for the Association of Community Organizations for Reform Now, better known as Acorn.

Clinton administration officials have made it clear that they oppose overhauling the reinvestment act. New implementation rules now being put in place should be given a chance to work, officials such as Comptroller of the Currency Eugene A. Ludwig have said.

The community groups are protesting provisions that would provide a safe harbor from protests for banks, eliminate regulators' authority to collect small-business and small-farm lending data, and reduce the number of banks required to report information on their home mortgages.

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