Another Congressional Committee Looks at CU Underserved Service

WASHINGTON – The issue of credit union service to the underserved has spread to a third congressional committee, the House Appropriations Committee, where NCUA Chairman JoAnn Johnson is expected to testify this morning of the many initiatives offered by NCUA credit unions around the country aid low-income communities. Today’s hearing, where representatives from well-known CDCU Bethex FCU and the CDFI fund will also appear, is the first on the subject at the Appropriations Committee’s newly formed subcommittee on Financial Services, which must approve annual appropriations for NCUA’s Community Development Revolving Loan Fund and the CDFI program. Congress has put more than $20 million into the NCUA community development fund over the years. Johnson is expected to discuss some of the initiatives undertaken by NCUA through its development fund, and by credit unions in the areas of payday lending and homeownership, and to tell lawmakers credit unions could do more if certain field of membership restraints are lifted. Specifically she will cite the new bar on community charters adding underserved communities to their FOMs. Over the last few years the issue of credit union service to the underserved as has been reviewed by the House Ways and Means Committee, which authorized the federal tax exemption, and the House Financial Services Committee, which debates all other issues concerning credit unions and banks.