2020: Schweikert Effectively Voted Against Requiring Banks To Invest In Areas Where They Have Offices. In June 2020, Schweikert 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]