CRA Bid Looms For CUs

WASHINGTON - (06/13/05) -- The chances of Congress consideringa Community Reinvestment Act-like requirement for credit unionsincreased last week as the leading Democrat on the House FinancialServices Committee almost ensured a debate on the issue. "We willbe looking into the CRA issue for credit unions," said Rep. BarneyFrank, D-Mass., in a speech to the Massachusetts BankersAssociation, after noting that state chartered credit unionsalready comply with the Bay State's own CRA. Frank's comments camethe day after several other members of the Financial ServicesSubcommittee on Financial Institutions raised the issue of CRA forcredit unions during last week's hearing on regulatory relief. Rep.Al Green, D-Texas, wondered whether a recent study by the NationalCommunity Reinvestment Coalition finding that credit unions lagbehind banks in serving the underserved should not be seen as aneed for CRA for credit unions. Several other members of the panelasked the same question.