WASHINGTON—After months of speculation and concerns by credit unions that it would contain language requiring compliance by credit unions with the Community Reinvestment Act (CRA), Sen. Elizabeth Warren (D-MA) has officially reintroduced the American Housing and Economic Mobility Act.
As reported earlier, the legislation does not include the CRA requirements that credit unions strongly oppose, following meetings with Warren’s office by the Cooperative Credit Union Association—which represents CUs in the senator’s home state of Massachusetts and three other states—and America’s Credit Unions.
Rep. Emanuel Cleaver (D-MO) is also introducing an identical House companion measure.
Senator Receive Thanks
“While America’s Credit Unions has concerns with the American Housing and Economic Mobility Act, we commend Senator Warren’s desire for housing reform in our country,” America’s Credit Unions President/CEO Jim Nussle said in a statement. “We thank her for keeping Community Reinvestment Act language out of this bill, and understanding how these additional regulatory and financial burdens would create difficulties for credit unions as well as the 140 million Americans they serve.
‘Incredible Coordination’
“Today’s news is a culmination of incredible coordination within the industry to successfully tell the story of credit unions fulfilling their fundamental duties of serving the underserved. As banks continue to chase profits, close their doors, and leave communities behind, credit unions will always hold themselves to a higher standard, and it’s clear that lawmakers understand and appreciate the credit union difference,” added Nussle. “This is a win for our industry, but the work continues until every American can live their best financial lives by choosing to trust credit unions.”