CUNA sent a letter to House Financial Services Committee leadership Monday—as Congress returns to Washington, D.C.—to strongly address misleading and incorrect statements about credit unions the Independent Community Bankers of America (ICBA) distributed earlier this month. ICBA’s letter urged the committee to hold a hearing on NCUA, which was already scheduled to take place in May with Chairman Todd Harper testifying. In addition, NCUA testifies before the committee every year.

“While we support strong oversight by all financial regulators, including the NCUA, CUNA is disheartened that the banks continue to use misinformation against the efforts of non-for-profit member-owned credit unions to help consumers and communities,” the letter reads.

CUNA countered all banker claims and demands:

• Banks continue to fight against credit union field of membership modernizations while calling for requiring credit unions to participate in the national Community Reinvestment Act (CRA), despite abandoning the underserved communities credit unions seek to serve. Banks closed a net 10,561 branches between 2004 and 2022, while credit unions opened a net 1,745 branches.
• Credit unions’ service to low-and-moderate-income (LMI) borrowers is superior to other lenders, despite banks’ misguided claims that credit unions do not serve LMI borrowers and communities. Credit unions approve first mortgage loans to LMI and minority borrowers at much higher rates than other lenders, have lower denial rates, and are 1.7 times more likely to originate a subprime auto loan than banks.
• NCUA’s interest rate ceiling has a positive impact on consumers and raising it would help many average consumers.
• Credit unions are subject to strict requirements and rules for business and fair lending, and despite those limitations continue to meet member business needs, especially during times of financial crisis.
• Despite bank claims about banks selling to credit unions, the number is miniscule compares to bank-to-bank purchases (67 sales to credit unions vs. 2,453 sales to banks since 2012), and such sales are a win-win for all stakeholders, including new members, communities, and employees.