CREDIT UNIONS STRAYING FROM MISSION, ICBA SAYS
Even though credit unions were created by Congress to serve "people of small means," some credit unions are straying from this mandate, ICBA told the National Credit Union Administration (NCUA) this week. Because of this, ICBA contended, it would be a mistake to rescind the one regulation that would force certain credit unions to adhere more closely to their statutory mission.
ICBA wrote to Dennis Dollar, chairman of the National Credit Union Administration board, objecting to a proposal to rescind the rule, set to take effect on December 31, that would require certain federally-chartered credit unions to develop and implement plans to serve low- and moderate-income people living within their field of membership. This regulation, called the Community Action Plan (CAP), "may be the only way to insure that credit unions meet congressionally-mandated lending requirements," ICBA wrote.
ICBA's letter noted that banks and thrifts are subject to the Community Reinvestment Act (CRA), but credit unions are not. The CAP initiative, thus, "was a small step in the direction of imposing a similar, but much less burdensome, requirement on community based credit unions." The NCUA board was expected to take up this matter on December 13.