Thursday, September 27, 2018

Senator Warren Introduces Bill to Extend CRA to CUs that Are Not Low-Income

Senator Elizabeth Warren (D - MA) introduced on September 26 legislation, American Housing and Economic Mobility Act, that would extend the Community Reinvestment Act (CRA) to more financial institutions, including credit unions that are not designated as low-income.

The bill will also promote investment in activities that help poor and middle-class communities and will strengthen sanctions on financial institutions that do not comply with the rules.

However, the bill would exclude 2,544 low-income designated credit unions from CRA requirements, including some of the largest credit unions in the country.

The bill further proposes billions of dollars of new investments into affordable housing trust funds.

To pay for the bill, Senator Warren proposes to return the estate tax thresholds to their levels at the end of the George W. Bush administration and to impose more progressive tax rates above those thresholds.

Credit union trade associations, as expected, oppose the extension of CRA to any credit unions.

Read the press release.

Read the bill's text.

Read a summary of the bill.


  1. OK fine. CRA for credit unions. Then we should get the same investment options as banks have to meet CRA targets/goals/compliance. Can't do that with one hand tied behind our backs. And, by the way, want access to CRA money that is available for banks thru the CDFI process.

    1. Great ideas. And, while we are at it, since you want parity, then let’s wave in that 21% federal tax!
      Let’s have real equality.
      All the way!

  2. What investment options do banks have that a CU doesn't? A federal CU can invest in anything they want as long as they pretend it's to fund employee benefits. I know of CU's that have equity portfolios, banks aren't allowed to trade stocks.

    Ultimately this is a non issue if NCUA is in charge of doing the CRA reviews. CU's don't even get compliance exams. Heck NCUA doesn't even do a real exam. Talk to your community banker they'll tell you how they get a month long exam of safety and soundness, and then another 3-4 weeks of a compliance exam. Then a CRA exam every few years



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.