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File #: 181061    Version:
Type: Resolution Status: Passed
File created: 10/16/2018 In control: COMMON COUNCIL
On agenda: Final action: 11/5/2018
Effective date:    
Title: Substitute resolution supporting the Community Reinvestment Act.
Sponsors: ALD. HAMILTON, ALD. ZIELINSKI, ALD. BAUMAN, ALD. JOHNSON, ALD. BORKOWSKI, ALD. RAINEY, ALD. LEWIS, ALD. STAMPER, ALD. COGGS
Indexes: BANKING, CIVIL RIGHTS
Attachments: 1. October 15 2018 communication from the MMFHC
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
11/9/20181 MAYOR SIGNED   Action details Meeting details Not available
11/5/20181 COMMON COUNCIL ADOPTED

Minutes note: Following concil members asked to be added as co-sponsors: Rainey, Lewis, Stamper and Coggs There were no objections.
Pass14:0 Action details Meeting details Not available
10/29/20180 JUDICIARY & LEGISLATION COMMITTEE SUBSTITUTED

Minutes note: Appearing: Ald. Hamilton - sponsor Bethany Sanchez - Fair Housing All Committee members asked to be added as Co-sponsors for this resolution. There were no objections.
Pass5:0 Action details Meeting details Video Video
10/29/20181 JUDICIARY & LEGISLATION COMMITTEE RECOMMENDED FOR ADOPTIONPass5:0 Action details Meeting details Video Video
10/16/20180 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available

Number

181061

Version

SUBSTITUTE 1

Reference

 

Sponsor

ALD. HAMILTON, ZIELINSKI, BAUMAN, JOHNSON, BORKOWSKI, RAINEY, LEWIS, STAMPER, AND COGGS

Title

Substitute resolution supporting the Community Reinvestment Act.

Analysis

This resolution expresses the Common Council’s support for the Community Reinvestment Act and efforts to modernize the law without undermining its goal and intent.

 

Body

Whereas, The Community Reinvestment Act is a landmark civil rights law enacted on October 22, 1977, to end the practice of redlining by financial institutions where they would draw red lines on maps around neighborhoods where they did not want to offer financial services; and

 

Whereas, Before the enactment of the Community Reinvestment Act, redlining made it impossible for low- and moderate-income Americans, racial and ethnic minorities and their neighborhoods to access credit services, such as mortgages and business loans, regardless of their qualifications or creditworthiness; and

 

Whereas, The Community Reinvestment Act states that regulated financial institutions have continuing and affirmative obligations to help meet the credit needs of the local communities in which they are chartered; and

 

Whereas, The Community Reinvestment Act establishes a regulatory regime for monitoring the level of lending, investments, and services in low- and moderate-income neighborhoods traditionally underserved by lending institutions; and

 

Whereas, If a regulatory agency finds a financial institution not serving low- and moderate-income neighborhoods, it can delay or deny that institution’s request to merge with another lender, open a branch or expand any of its other services; and

 

Whereas, A financial institution’s Community Reinvestment Act grade can be downgraded if a federal agency uncovers evidence of illegal, abusive or discriminatory lending on its fair lending exams; and

 

Whereas, Since 1996, according to an analysis of bank lending data by the National Community Reinvestment Coalition, Community Reinvestment Act-covered banks issued more than 25 million small business loans in low- and moderate-income census tracts, totaling more than $1 trillion, and $980 billion in community development loans that support affordable housing and economic development projects benefitting low- and moderate-income communities; and

 

Whereas, Despite the substantial benefits of the Community Reinvestment Act to communities, the full potential of the Act has not been realized because it has not been updated to take into account changes in the banking industry and the economy; and

 

Whereas, Independent mortgage companies not covered by the Community Reinvestment Act now make up more than 50 percent of the home mortgage loans in America, and financial technology companies not covered by the Act operating via the internet are rapidly increasing their lending; and

 

Whereas, Notwithstanding the need to modernize the Community Reinvestment Act, the City of Milwaukee has concerns about ideas from some federal regulators that would substantially weaken the law; now, therefore, be it

 

Resolved, By the Common Council of the City of Milwaukee, that the Common Council expresses its support for efforts to modernize the Community Reinvestment Act, and opposes any attempts to undermine the law’s goal and intent; and

 

Further Resolved, That the City of Milwaukee opposes regulators’ efforts to water down the penalties under the Community Reinvestment Act; and

 

Further Resolved, That the City of Milwaukee supports a Community Reinvestment Act with a clearly-defined grading system that emphasizes lending, bank branches, fair lending performance, and responsible loan products for working-class families; and, be it

 

Further Resolved, That the City of Milwaukee supports efforts to hold banks accountable if they fail their Community Reinvestment Act exam, or seek to acquire banks to increase their Community Reinvestment Act grades, and urge agencies to recognize and encourage community benefit agreements and efforts that motivate banks to make more loans, investments, and services available to traditionally-underserved communities.

 

Requestor

 

Drafter

LRB 172285-1

Kari B. Gipson

10/18/2018