Efforts to bring credit unions under a federal community reinvestment act could be strengthened if CU's commitment to help lower income communities falters, according to Cliff Rosenthal, CEO of the National Federation of Community Development Credit Unions.
"Right now what we have noticed is a general cutting back on budgets in this area," Rosenthal said, "even among some of our community development partner credit unions, there has been a marked shifting of focus."
Community development partner credit unions are "mainstream" credit unions with a strong demonstrated commitment to serving low-and moderate-income people and communities.
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Rosenthal characterized credit union's efforts to work with lower income communities as "playing defense" in the face of the current poor economy and hits credit unions have taken from the corporate stabilization program. The slowing effort could in turn impact the arguments credit unions face over a federal community reinvestment act as credit unions close branches in lower income areas or pull back on products and services aimed at lower income communities.
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