Credit unions are not included in a Treasury report released Tuesday on recommendations to reform the Community Reinvestment Act (CRA). The CRA applies to financial institutions insured by the Federal Deposit Insurance Corp.
The CRA is designed to increase access to banking services to low- and moderate-income communities. The Treasury said in a 2017 report to President Donald Trump that it would comprehensively assess how the CRA could be improved.
CUNA staff met with the Treasury in January, explaining credit unions’ mission and structure, and how Congress explicitly excluded credit unions from the CRA because of credit unions’ not-for-profit, cooperative structure, field of membership restrictions and lack of history of discriminatory lending processes.
The only mention of the term “credit union” in the report is a statement noting the CRA does not apply to credit unions.