Last year the federal Office of Thrift Supervision weakened the responsibilities of many mid-sized banks under the Community Reinvestment Act by redefining them as small banks. Now OTS has redefined community development to benefit more middle-income people. The agency says banks should get credit for serving “distressed or underserved, nonmetropolitan middle-income geographies.” OTS received over 4,000 comments from consumer groups who said the new language could encourage banks to serve affluent neighborhoods in rural areas rather than low-income people. But the agency acted on positive feedback from about 200 thrifts. (NLIHC)