Keep credit unions out of the CRA: Trade groups
In letters to the OCC, CUNA and NAFCU fight to keep CUs out of the CRA as bankers argue CUs should be subject to the law.
Credit unions do not belong in the Community Investment Act, credit union trade groups said in letters to the Office of the Comptroller of the Currency and the House Financial Services Committee.
“While not subject to (the reinvestment act) credit unions do have a specified mission of meeting the credit and savings needs of consumers, especially persons of modest means,” Mitria Wilson, CUNA’s senior director of advocacy and counsel, wrote in a letter to the OCC.
The OCC is soliciting comments on how to best update the reinvestment act. The regulator cannot add credit unions to the law; Congress would have to do that.
“As you are aware, the CRA was adopted as a punitive measure to punish bad actors – namely banks – for engaging in discriminatory and abhorrent practices such as redlining and disinvestment,” NAFCU President/CEO B. Dan Berger wrote in a letter to the leaders of the House Committee.
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