Statement of Administration Policy: H.R. 3474 - Regulatory Relief and Community Development Banking and Financial Institutions

(House)
(Gonzalez (D) Texas)

The administration strongly supports H.R. 3474. This legislation includes two initiatives important to the President's domestic legislative agenda — regulatory reform (Title 1) and community development financial institutions (Title II).

The Community Development Banking and Financial Institutions Fund is a critical part of the Administration's comprehensive plan to assist economically distressed communities and populations. The Fund will provide financial assistance to a wide range of community development financial institutions (CDFIs), which will bring credit, equity capital, basic banking services, and technical assistance to distressed communities and populations.

The Fund promotes the formation and expansion of self-sustaining private sector CDFIs through financial and technical assistance and leveraging private funds. In so doing, the Fund will empower distressed communities and populations.

In addition, the bill will reduce the regulatory burden on the Nation's insured depository institutions by eliminating unnecessary and costly requirements. This should help make credit more available to consumers and businesses at potentially lower costs.

The Administration has concerns regarding some provisions of the bill:,; including, in Title I, insider lending, alternative dispute resolution and agency ombudsmen, and in Title II, board size and composition, selection criteria, the relationship between assessment credits and the CDFI program, and changes in the Federal Home Loan Bank System. Taken as a whole, however, H.R. 3474 furthers the Administration's initiatives to make credit more readily available; the Administration's concerns can be resolved in conference.

The Administration remains strongly committed to community development and regulatory reform and urges the House to act on H.R. 3474 during the current session.