Community Development Investment Enhancements Act of 2006

Madam Speaker, I yield myself 2 minutes.

The gentleman from North Carolina has more than adequately explained it. I do just want to comment on the procedure.

A version of this is included in the earlier bill we passed today providing regulatory relief. We have two versions. This is the way it should be. What we did earlier is what the Senate will accept. So it was important for us to show what it should be. The Senate will go apparently part of the way. There have been negotiations and conversations. There were things in there, like including thrifts, that the Senate was not willing to accept; but there will be another legislative session.

It seems to me the better part of wisdom and better part of public policy is to take what we can now, and that is what we have done. I think this will prove to be a good thing and that it will help us make the case for, in fact, doing everything that we wanted to do.

I just at this point, Madam Speaker, include into the Record letters in support of the original bill, but also obviously in favor of the other version that we did because that is all we could get through on the other side from the Office of Thrift Supervision and the Comptroller of the Currency.

Office of Thrift Supervision,

Department of the Treasury,

Washington, DC, September 25, 2006.

Hon. Barney Frank

Ranking Member, Committee on Financial Services, House of

Representatives, Washington, DC.

Dear Congressman Frank: I want to thank you for your work

on H.R. 6062, the ``Community Development Investment

Enhancements Act of 2006,'' and offer my support for your

bill. Originally included as Sections 202 and 112 of H.R.

3505, the ``Financial Services Regulatory Relief Act of

2005,'' which passed the full House of Representatives, this

legislation is especially important to supporting important

community development programs.

In particular, your bill increases the ability of federal

thrifts to make investments primarily designed to promote the

public welfare of low- and moderate-income communities and

families through the provision of housing, services, and

jobs. H.R. 6062 accomplishes this by raising the limits on

the ability of federal thrifts to invest in entities

primarily engaged in making these public welfare investments.

While we are encouraged that the original Regulatory Relief

Act, H.R. 3505, may be enacted in the next few weeks, we

strongly support passage of H.R. 6062 as a freestanding bill

if it is not included in the broader package. Just as it is

important to reduce burdens on financial institutions in

order to remove unnecessary regulatory obstacles that hinder

profitability, innovation, and competition in our financial

services industry, it is equally important to remove barriers

to the growth and stability of low- and moderate-income

communities.

Thank you for your leadership and continued interest is

this issue. We applaud your efforts and urge swift action on

H.R. 6062. If you have any questions, please do not hesitate

to contact me or Kevin Petrasic, Managing Director of

External Affairs, at 202-906-6452.

Respectfully yours,

John M. Reich,

Director.

Madam Speaker, I rise in support of H.R. 6062, ``the Community Development Enhancements Act of 2006.'' I want to thank Mr. Frank for sponsoring this bill, and our distinguished Chairman Mr. Oxley, who is an original sponsor of the bill. The bill will enhance the community development investments made by financial institutions.

The bill has two major provisions. One provision would increase the amount of investments that a financial institution can make for community development from 10 percent to 15 percent. This increase in the amount that banks can invest in such activities will enable the banks to invest more of its resources in investments that will directly benefit communities and low and moderate income persons.

Another provision directs portions of the investments made by the financial institutions to

promote the public welfare. Citing the actual legislation, the financial institutions ``may make investments designed primarily to promote the public welfare, including the welfare of low and moderate income communities and families through housing, services and jobs.''

The changes mandated by this bill send a clear message to financial institutions that the needs of low and moderate income communities and families are important. More often than not, these groups are overlooked or their needs underestimated. In addition, the bill enables our financial institutions to look at investments on an investment by investment basis rather than in the aggregate.

Madam Speaker, I urge my colleagues to support H.R. 6062, because it will strengthen investment in low and moderate income communities across this Nation. Financial institutions must continue to play a role in strengthening and stabilizing our communities and this bill will facilitate both.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 6062) to enhance community development investments by financial institutions, and for other purposes.

Madam Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, today the House will consider H.R. 6062, the Community Development Investment Enhancements Act of 2006.

I first want to commend Chairman Oxley and Ranking Member Frank for their leadership on the Financial Services Committee for introducing this legislation.

It is comprised of two major provisions from H.R. 3505, the Financial Services Regulatory Relief Act of 2005, which the House passed last March by a vote of 415-2. H.R. 3505 provides comprehensive regulatory relief to the financial services industry and its regulators. Those two sections were not included in the Senate-passed regulatory relief bill,

Madam Speaker, I urge my colleagues to support this important piece of legislation, and I yield back the balance of my time.