WASHINGTON — A bill that would take away some of the Community Reinvestment Act easements that banks gained during the Republican Congress is silent on credit unions.
According to CUNA Vice President of Legislative Affairs Dean Sagar, the Community Reinvestment Modernization Act (H.R. 1289) as introduced, would not impact credit unions. "There is…a 96-page bill that would extend CRA to everyone except, surprisingly in that bill it did not extend it to credit unions," he said. "It reverses a lot of the weakening of CRA the banks have achieved in recent years and would expand it to about everybody else."
But it may not stay that way. "It doesn't mention credit unions but my sense is that there is committee staff saying, if they pursue CRA, it would be on everyone with a capital E," Sagar, a former House Financial Services Committee staffer, said.
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The Community Reinvestment Modernization Act would repeal the reduced reporting requirements instituted in the last couple of years by the Comptroller of the Currency, the Federal Reserve, the FDIC, and the Office of Thrift Supervision. It subjects non-bank affiliates of bank holding companies that engage in lending or offering banking products or services to CRA; requires a reduction in rating for predatory and discriminatory lending, and states that securities companies, mortgage banks, and insurance companies have a continuing affirmative obligation to meet the financial services needs in their assessment areas, including those of low- and moderate-income neighborhoods and persons of modest means.
The bill has been referred to the Financial Services Committee.
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