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| Placing CRA on Credit Unions would Reduce Access to Credit |
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In a letter sent Friday, America’s Credit Unions President/CEO Jim Nussle continued to push back on comments from Rep. Emanuel Cleaver, D-Mo., that the Community Reinvestment Act (CRA) should be expanded to credit unions. Cleaver made those remarks at last week’s House Financial Services Committee hearing with federal financial regulators, suggesting to NCUA Chairman Todd Harper CRA should apply to credit unions as well as banks.
America’s Credit Unions strongly opposes placing CRA requirements on credit unions, Nussle wrote to Cleaver following the hearing, because credit unions’ mission and structure mean they are already in the success of members and communities.
“As many in Congress have wisely noted, if all financial institutions acted like credit unions, there would be no need for the CRA. We firmly believe that placing CRA requirements on credit unions would create new costly regulatory burdens without public benefit—a solution in search of a problem,” Nussle wrote. “This could lead to such changes having the impact of actually reducing access to credit for those in vulnerable communities.”
Nussle added that credit unions agree more must be done to promote access to financial services and end discriminatory practices, but “banking representatives have traditionally opposed efforts for credit unions to expand in underserved areas and even have previously sued the NCUA to prevent more credit unions from adding underserved areas.”
Missouri credit union leaders previously met with Cleaver earlier this year during the August recess, and Nussle wrote to Cleaver following his comments at a previous hearing in support of expanding CRA to credit unions.
In the most recent letter, Nussle also corrected misinformation that Navy was found by the Department of Justice to be discriminating by redlining.
Copyright 2024. America's Credit Unions. (link) |
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