Capital Briefs: Community Group Hits GreenPoint on CRA

WASHINGTON - A Bronx-based community group has turned its Community Reinvestment Act spotlight on GreenPoint Financial Corp., threatening to derail the $7 billion-asset institution's acquisition of 60 branches from Home Savings of America.

Inner City Press/Community on the Move charged that the Flushing, N.Y.- based thrift lends only in the affluent, white sections of the Bronx, ignoring the low-income minority areas. It also said GreenPoint excludes the Bronx from its CRA delineation.

Finally, the group said the bank destabilizes communities by making questionable multiple-housing loans that frequently fail.

GreenPoint officials said the complaint was groundless, noting examiners from both New York State and the Federal Deposit Insurance Corp. gave the thrift "outstanding" ratings at its most recent CRA exams.

"We don't think the protest has any merit," GreenPoint senior vice president Richard Humphrey said. "Overall, we have an extremely strong record of community lending."

Mr. Humphrey said the bank scored either first or second in New York for lending to minorities, in minority communities, and in low-income and moderate-income areas.

Inner City Press has used CRA protests during the past year to secure commitments from six banks to lend a total of $80 million in the Bronx. Banks also have agreed to open two branches, two loan production offices, and two ATM machines in the borough.

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