WASHINGTON — The Community Reinvestment Modernization Act (H.R.1289) does not mention credit unions in its current form, but aCUNA lobbyist said it might not stay that way.

“There is…a 96-page bill that would extend CRA to everyoneexcept, surprisingly in that bill it did not extend it to creditunions,” CUNA Vice President of Legislative Affairs Dean Sagarsaid. “It reverses a lot of the weakening of CRA the banks haveachieved in recent years and would expand it to about everybodyelse.”

But it may not stay that way. “It doesn't mention credit unionsbut my sense is that there is committee staff saying, if theypursue CRA, it would be on everyone with a capital E,” Sagar, aformer House Financial Services Committee staffer, said.

The bill would repeal the reduced reporting requirementsinstituted by the bank regulators; subject non-bank affiliates ofbank holding companies that engage in lending or offering bankingproducts or services; require a reduction in rating for predatoryand discriminatory lending; and state that securities companies,mortgage banks, and insurance companies have a continuingaffirmative obligation to meet the financial services needs intheir assessment areas, including those of modest means.