WASHINGTON — The credit union lobby appears to have a supporter in Congressman Jos?(C) E. Serrano (D-N.Y.) and he is someone in a very good position for credit unions to have a friend.
Just 18 months after the Appropriations Committee chairman, now retired, said credit unions needed to document their work for the underserved in order to justify their tax-exemption, Serrano, chairman of the House Appropriations Financial Services Subcommittee, has introduced a bill to help federal credit unions expand their reach into the underserved markets. Affordable Financial Services Enhancement Act (H.R. 3113) is a concise, one-sentence bill that would do just that.
"Through this positive legislation, Chairman Serrano recognizes the valuable work of NCUA, the Community Development Financial Institutions Fund and NAFCU on behalf of the underserved," NAFCU President/CEO Fred Becker said.
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He continued, "This legislation underscores that credit unions are a powerful ally for underserved and low-income consumers. Credit unions have typically charged lower rates and fees and offered services designed to meet their members' unique needs, including financial education and Spanish-language materials."
"Chairman Serrano clearly has an abiding and well-known interest in getting more mainstream financial institutions, including credit unions, into lower-income communities," NCUA Chairman JoAnn Johnson said, noting that she testified before his subcommittee and plugged the idea.
CUNA Vice President of Communications and Media Outreach said of the Serrano bill, "We welcome it and will work with him."
NCUA backed down on its stance permitting all federal credit union charter types to adopt underserved areas after the American Bankers Association filed a lawsuit based on the strict statutory language of the Credit Union Membership Access Act (H.R. 1151). The agency argued that it was complying with the spirit of the law and legislative history but still changed its policy to allow only multiple common bond credit unions to adopt underserved areas.
The legislation is also a provision of the Credit Union Regulatory Improvements Act (H.R. 1537). Lobbyists have said the provision is helpful in garnering support for CURIA though Serrano is not on the list of official co-sponsors.
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