2020: Fitzpatrick Effectively Voted Against Requiring Banks To Invest
In Areas Where They Have Offices. In June 2020, Fitzpatrick voted
against a joint resolution that would, according to Congressional
Quarterly, "provide for congressional disapproval of a May 2020 Office
of the Comptroller of the Currency rule modifying criteria used to
evaluate bank compliance under the 1977 Community Reinvestment Act,
which established a framework to evaluate and incentivize activities by
banks to provide credit and make investments in low- and moderate-income
areas. Among other provisions, the rule would expand the list of
qualifying community reinvestment activities and modify criteria to
determine deposit-based assessment areas for banks that do not rely on
physical branches. The rule is currently scheduled to go into effect on
October 1, 2020. Under the provisions of the joint resolution, the rule
would have no force or effect." The vote was on passage. The House
passed the bill by a vote of 230-179. The bill died in the Senate.
[House Vote 129,
6/29/20; Congressional
Quarterly, 6/29/20;
Congressional Actions,
H.J.Res.90]
The Resolution Blocked A Recent Change To A Law Requiring That
Banks Invest In The Communities Where They Have Offices. According
to Congressional Quarterly, "The House passed a resolution Monday
that would block a change in community reinvestment rules for banks
as the administration said the president would veto the measure
[...] The measure would scrap a recent rule change to a 1977 law
that requires banks to invest in areas where they have offices
[...] The Office of the Comptroller of the Currency finalized the
changes to the 1977 law in may over the objections of community
groups." [Congressional Quarterly,
6/29/20]
The Change Would Allow Banks To Get Credit For Making Profitable
Investments That Fail To Help Low-Income Residents. According to
Congressional Quarterly, "The law requires banks to make investments
in the neighborhoods they are located in, and the rule changes are
supposed to make it easier for banks to prove they are doing so by
using simplified, quantitative tests over more qualitative
assessments. Critics say the changes will allow banks to get credit
for making profitable investments that do little to help low-income
communities and residents. Supporters counter that the current rules
can super gentrification and displacement by encouraging banks to
finance mortgages to wealthier homebuyers in low-income
communities." [Congressional Quarterly,
6/29/20]