Sen. Elizabeth Warren (D-Mass.) introduced a CUNA-supported bill Friday, the American Housing and Economic Mobility Act of 2021. The bill would not require credit unions to comply with the Community Reinvestment Act (CRA), but codifies existing community outreach, input, and oversight polices already present in NCUA regulations.
“We thank Sen. Warren for introducing this bill that explicitly excludes credit unions from CRA requirements and recognizing the services credit unions perform to historically underserved communities,” said CUNA President/CEO Jim Nussle. “Credit unions fully embrace their mission to serving individuals of modest means, and this legislation would allow credit unions to more readily meet the needs of these communities.”
CUNA, Leagues, and credit unions met with Warren for months leading up to the bill’s introduction in the last Congress, demonstrating that credit unions are better positioned to serve underserved communities without being subject to requirements of the CRA.
Subjecting credit unions to CRA requirements would require them to shift resources away from increasing access to responsible financial products to satisfying additional compliance demands. CUNA and Leagues believe this would frustrate, rather than benefit, the objectives of increasing access to credit and capital in underserved communities.