On Tuesday, September 25, U.S. Senator Elizabeth Warren (D-MA) introduced legislation that would require credit unions be examined for compliance with the Community Reinvestment Act (CRA). Congress exempted credit unions from the CRA when that regulation was enacted, determining it would be unnecessary and counter-intuitive for it to apply to member-owned financial cooperatives.

CUNA has already expressed strong opposition to this legislation, which CUNA believes was backed by Wall Street bankers as part of their ongoing efforts to undermine credit unions.  CUNA President/CEO Jim Nussle commented that:

“Credit unions have not and do not engage in the discriminatory lending activity that prompted Congress 40 years ago to enact the Community Reinvestment Act.  Therefore, it makes no sense to subject them to the type of punitive requirements that banks with a history of redlining must follow.  Credit unions are not-for-profit, member-owned financial institutions who deliver $15 billion in benefit to consumers every year.  Make no mistake: this bill would jeopardize this benefit and the ability for credit unions to serve their members.  It will make it more difficult for low and moderate-income borrowers to access credit from credit unions.”

The MECUL Governmental Affairs team will keep our credit unions apprised as this bill moves through the legislative process and notify our members about any advocacy steps we should take to help stop this harmful legislation in its tracks.