Bank Group Responds To Comments In CU Journal

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In response made to The Credit Union Journal, the Independent Community Bankers of America has sent a letter to HUD Secretary Alphonso Jackson protesting Jackson's comments that CUs are close to their communities, but banks are not.

"While I agree that some banks are 'just too big' to have a close relationship with their communities, the nearly 5,000 members of the Independent Community Bankers of America define themselves by their commitment to serving their customers and communities," said ICBA CEO Camden R. Fine. In his letter, Fine pointed to the strong support community banks have given to HUD's goal of increasing home ownership, particularly among minority groups.

"Community banks' commitment to home lending has greatly increased in recent years. They now depend heavily on the Federal Home Loan Banks, Fannie Mae, and Freddie Mac to obtain funding for local mortgage loans," Fine wrote. "Since HUD is so intimately involved in the regulation of these housing GSEs, I believe it is essential that you fully understand the role that community banks play in this area."

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