Editor's Note: This story has been updated since its initial reporting to reflect input from the Defense Credit Union Council.
MARLBOROUGH, Mass.–Language that would have forced credit unions to comply with some provisions of the Community Reinvestment Act (CRA) will not be included in legislation that is expected to be introduced in the Senate today.
As CUToday.info reported earlier, Sen. Elizabeth Warren (D-MA) has indicated she planned to introduce the American Housing and Mobility Act of 2024 aimed at making housing more affordable and ending housing discrimination, with provisions that would also add a host of new Community Reinvestment Act-like requirements for certain federal credit unions, including around mergers.
But the Cooperative Credit Union Association (CCUA) is reporting that it has been working with Warren’s office and the CRA language will not be included.
“While the draft bill had included significant aspects of the Community Reinvestment Act (CRA), we worked extensively with Senator Warren’s team and America’s Credit Unions to provide technical expertise and education on the implications of CRA’s potential impact on credit unions,” CCUA President and CEO Ron McLean said in an email to members of the association, which includes CUs in Massachusetts, Rhode Island, New Hampshire and Delaware. “I am happy to inform you that the bill does not include the CRA application to credit unions. This achievement underscores the powerful advocacy influence of both CCUA and our national partner, America’s Credit Unions. I am especially proud of CCUA’s advocacy team and the pivotal role they played.”
DCUC Registers Concerns
While the CRA language has reportedly been removed, Jason Stverak, chief advocacy officer with the Defense Credit Union Council, said the organization remains concerns over any additional reporting requirements that could be included in a Warren bill.
What credit unions don’t need, he said, is more time demands to fill out reports that go to Washington and no one ever reads.
There is also the issue of why Washington would need much of the information in the first place, Stverak said, especially when there isn’t any explanation of how the information contributes to safety and soundness.