The National Federation of Community Development Credit Unions has reiterated its long standing policy of opposing the imposition of the community reinvestment act on credit unions.
The National Federation restated its opposition after HR 1479, the Community Reinvestment Modernization Act, was introduced into the House of Representatives. The bill would extend CRA to mortgage banks, financial holding companies, insurance companies, securities companies and so called "mainstream" credit unions.
The bill would exempt credit unions designated as "low income" and most, if not all, community development credit unions.
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"Even though the Federation's member credit unions would not be directly affected by the legislation, we do not support the extension of CRA to the rest of the credit union movement," the National Federation said.
"We believe that adding CRA to the compliance costs faced by credit unions may, in fact, have the unintended consequence of decreasing credit union investment in low-income communities. It may divert resources and focus to compliance instead of maintaining or expanding the voluntary investments that credit unions have made, and are increasingly making."
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