Senator Elizabeth Warren (D-Mass.) today introduced an updated version of the American Housing and Economic Mobility Act. Sen. Warren initially planned to expand the Community Reinvestment Act (CRA) to include new requirements for credit unions. Instead the bill codifies the existing National Credit Union Administration (NCUA) regulations that dictate how credit unions serve underserved communities.
“This bill is a shining example of CUNA, league and credit union 360-degree advocacy in action.,” said CUNA President/CEO Jim Nussle. “When Senator Warren introduced a similar bill in 2018, it expanded CRA and place onerous and duplicative regulations on credit unions. In the 116th Congress, CUNA collaborated with our League partners and the Senator to show the many ways that credit unions have been fulfilling requirements to support underserved communities for well over two decades. Recognizing the power that credit unions bring these communities, Senator Warren pivoted to instead codify into law the regulations that have been dictating our actions for many years. We look forward to working with the Senator and other likeminded lawmakers to ensure that credit unions are able to continue serving these communities for the foreseeable future.”
Due to their not-for-profit, cooperative nature, credit unions have always served their members, no matter their background or income levels. Congress has considered whether the CRA should apply to credit unions, consistently maintained the determination that such application is not only unnecessary, but counter-intuitive given the member-owned nature of credit unions.
CUNA maintains that credit unions are financial cooperatives that exist solely to provide pooled funds for member-owners and should be treated as the good actors they are. The trade association collaborated with League partners and Sen. Warren to show the many ways that credit unions have been fulfilling requirements to support underserved communities for well over two decades.
Chief Advocacy Officer, Ryan Donovan penned an opinion editorial for The Hill in October 2018, noting that Sen. Warren’s initial proposal to place credit unions under the CRA would be a step backward in access to affordable mortgage credit. Since that time CUNA and League partners have been actively engaging with Sen. Warren’s office to effect the changes reflected in today’s bill. CUNA sent a letter of support for the 2019 American Housing and Economic Mobility Act.