CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » FOM modernization bill passes House Financial Services Committee
Policy & Issues

FOM modernization bill passes House Financial Services Committee

May 18, 2022
Cap1

The House Financial Services Committee advanced the CUNA-League-led Expanding Financial Access for Underserved Communities Act (H.R 7003) with a 27-22 vote. The bill represents the most significant proposed update to the Federal Credit Union Act since 1998.

“Thank you to all on the committee who supported this important legislation and credit unions’ efforts to promote financial well-being for all,” said CUNA President/CEO Jim Nussle. “This legislation provides a commonsense market-based solution to reach the nearly one in five households that are un- or underbanked across the country.”

"H.R. 7003 adds underserved communities to credit union fields of membership while also removing barriers to the member-business lending cap for these communities. This measure is really about creating opportunity and access for many who reside in America’s banking deserts. As we have learned during the COVID-19 pandemic, an overwhelming percentage of individuals and small businesses in underserved communities do not retain a local banking relationship, which is a major problem that H.R. 7003 seeks to resolve," said California and Nevada Credit Union League President/CEO Diana Dykstra. "I want to thank Chairwoman Waters for her continual support of credit unions and our charter. A special thank you to her team, who has spent hours and days working to bring this bill forward. We know they will aid our efforts to bring this bill to law."

Specifically, H.R. 7003 would:

  • Allow all federal credit unions to add underserved areas to their field of membership.
  • Exempt business loans made by credit unions in underserved areas from the credit union member business lending cap.
  • Expand the definition of an underserved area to include New Markets Tax Credit areas and any area that is more than ten miles from the nearest financial institution branch.

The committee also advanced the CUNA-supported CDFI Bond Guarantee Improvement Act of 2022 (H.R. 7733), which would modify and permanently authorize the CDFI Bond Guarantee Program and make it more accessible to smaller CDFI credit unions.

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., introduced H.R. 7003 shortly after the 2022 CUNA Governmental Affairs Conference.

More than 750 census tracts are financial deserts, and a net 7,800+ bank branches closed between January 2005 and March 2021, according to CUNA research. Credit unions opened more than 1,400 net credit union branches over the same time period.

CUNA submitted comments for the record supporting H.R. 7003 and other bills in the markup. CUNA, the American Association of Credit Union Leagues, and all state Leagues also submitted comments in support of H.R. 7003, and CUNA signed onto a letter from the National Cooperative Business Association. 

The African American Credit Union Coalition, Inclusiv, and the National Association of Latino Credit Unions and Professionals  also wrote in support of the bill. 

Credit Union Magazine: Summer 2022

Summer 2022

Credit Union Magazine’s Spring 2022 edition highlights inclusive lending, succession planning, fair lending and artificial intelligence, and the use of environmental, social, and governance (ESG) as a competitive differentiator.
Digital Edition •  Subscribe

Trending

  • CUNA board, CFPB Director Chopra talk credit union priorities

  • CFPB, NCUA rules on Spring 2022 Unified Agenda

  • Legislation would prevent further exploitation of ILC loophole

Tweets by CUNA_News

Polls

Do you think credit unions should offer cryptocurrency services?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us