WASHINGTON – Community development advocates yesterday joined bankers in calling on Congress to expand the Community Reinvestment Act to credit unions and other entities not currently covered.
John Taylor, president of the National Community Reinvestment Coalition, told the House Financial Services Committee studies conducted by his group found that credit unions lag behind banks and thrifts in serving low- and moderate-income families and minorities. The credit union industry has grown enough “that it should never lag, but should be far ahead of banks and thrifts in providing credit to low-income and minority groups–particularly because of the tax benefits (exemption),” said Taylor.
Taylor also suggested the law requiring banks and thrifts to provide concrete services to low-income and inner city communities be extended to include securities companies, mortgage companies, insurers and investment banks.
Later, Cynthia Blankenship, chairman of Bank of the West who was representing the Independent Community Bankers Association, also urged the committee to extend CRA to credit unions. “We strongly recommend Congress require credit unions to comply with CRA, just like banks and thrifts,” she said.
Rep. Barney Frank, the chairman of the Financial Services Committee, said he expects Congress to propose amendments to the 30-year-old CRA which would expand its scope and better monitor compliance by institutions.
Both NAFCU and CUNA yesterday said they will continue to fight any efforts by Congress to extend CRA to credit unions.
