Removing Barriers Blog

CUNA Writes to HFSC Prior to Hearing on Community Reinvestment Act
Posted April 10, 2019 by CUNA Advocacy

CUNA wrote to Chairman Meeks and Ranking Member Luetkemeyer prior to the House Financial Services Subcommittee hearing on “The Community Reinvestment Act: Assessing the Law’s Impact on Discrimination and Redlining.

As Congress ponders ways to improve the Community Reinvestment Act’s (CRA) impact on redlining and discrimination CUNA urged the Committee to consider ways to strengthen partnerships between banks and credit unions.
“Credit unions have a track record of fairly meeting the needs of all members-regardless of their race, gender, or socio-economic background,” the letter reads. “Thus, facilitating the partnerships between banks and credit unions can serve as an important mechanism for ensuring that the goals of the Community Reinvestment Act are reached.

The letter states that while credit unions are not, and should not, be subject to CRA requirements, they play a “critical role” in helping banks meet their obligations to traditionally underserved communities.
CUNA, leagues and credit unions recently demonstrated credit unions’ strong track record of meeting those needs in meetings with Senator Elizabeth Warren regarding the American Housing and Economic Mobility Act of 2019.
The version of the bill in previous Congress would have required credit union compliance with the CRA, but after numerous meetings, the version introduced in this Congress does not require credit union compliance with the CRA.

The months of engagement successfully demonstrated to Warren and other bill sponsors that credit unions already abide by rules ensuring they provide safe and affordable housing products to a variety of populations, and that placing credit unions under CRA would require them to shift resources away from these services.