For Immediate Release
October 24, 2000 Contact:
Carol Lambert
External Affairs
Tel: (202) 220-2353
E-mail: clambert@nw.org

OTS DIRECTOR SEIDMAN SPEAKS TO COMMUNITY DEVELOPMENT GROUPS ABOUT THE FUTURE OF THE COMMUNITY REINVESTMENT ACT

Washington, DC -- Ellen Seidman, director of the Office of Thrift Supervision and chairman of Neighborhood Reinvestment Corporation's board of directors, today shared her perspective on the future of the Community Reinvestment Act (CRA) with community development experts from around the country. Speaking at the Neighborhood Reinvestment Corporation's Training Institute in Tampa, Fla., Director Seidman's theme was "CRA in the Balance: Enhancing its Effectiveness, Playing a Role in its Future."

Since its enactment 23 years ago, CRA has become one of the most powerful tools available for community revitalization efforts nationwide. CRA has helped direct billions of dollars into traditionally capital-deprived communities, and created home-ownership opportunities, which previously did not exist, for hundreds of thousands of families.

"The key to making CRA and its implementing regulations both effective and supported by financial institutions and communities, is that they be consistent with, and encouraging of, the development and implementation of each institution's comprehensive strategy for serving its community," Director Seidman said.

CRA has been a focal point of controversy, with detractors either claiming that it was unnecessary or that its enforcement lacked teeth. Today CRA is under increasing scrutiny on Capital Hill and among the federal financial service regulators. Director Seidman provided clarity on the challenges facing CRA, and discussed strategies that enable community development practitioners to collaborate with financial institutions and government agencies in creating sustainable community reinvestment.

The NeighborWorks network of more than 200 community-based organizations uses the CRA as a tool in its more than 1,400 urban, suburban and rural communities across the country. In 1999, the network generated more than $1 billion of direct investment nationwide. The NeighborWorks® Campaign for Home Ownership 2002, launched in January 1998, has created more than 21,000 new homeowners. By the end of 2000, the network will assist more than 30,000 families rent, own and maintain safe, affordable homes.

Neighborhood Reinvestment Corporation, founder of the NeighborWorks network, was created by Congress in 1978. The corporation strengthens NeighborWorks organizations through training, technical assistance and funding. Contact Carol Lambert for transcript of speech.

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