Recently reintroduced Senate legislation to codify community outreach policies for community credit unions is getting a mixed reception from credit union industry groups.
The Bill: The American Housing and Economic Mobility Act would require institutions seeking a community credit union designation to submit business plans to the National Credit Union Administration. It would also retain the credit union industry’s exemption from Community Reinvestment Act oversight.
Industry Response: The Credit Union National Association endorsed the bill—noting previous versions would have applied CRA to credit unions. The National Association of Federally-Insured Credit Unions opposes the bill, citing increased regulatory burdens.
ICBA Position: ICBA supports increased regulatory parity between community banks and credit unions—including applying CRA to the tax-exempt entities.
More: ICBA this week issued a customizable op-ed that community bankers can use to raise awareness of credit union acquisitions of community banks. It follows a similar American Banker op-ed by ICBA President and CEO Rebeca Romero Rainey.