Through months of engagement between credit unions, leagues, Warren and her staff, and other members of Congress, CUNA demonstrated that credit unions already abide by rules that ensure they provide safe and affordable housing products to members of varying socio-economic statuses without being subject to the CRA. Recent CUNA research shows that more than half of all credit union mortgages made across America went to households earning middle incomes or less.
Subjecting credit unions to CRA requirements would require them to shift resources away from increasing access to responsible financial products in order to satisfy additional compliance demands. That result would frustrate, rather than benefit, the objectives of increasing access to credit and capital in underserved communities.
Instead, the current bill adopts an approach that codifies the existing community outreach, input and oversight polices already present in NCUA regulations. Credit unions have been abiding by those polices for more than 20 years.
CUNA wrote to Warren supporting the bill Wednesday, thanking Warren and her staff for their engagement on the bill and for “working with us to develop an approach that better serves the interests of communities.”