Legislation introduced in the House and Senate on March 13, the American Housing and Economic Mobility Act, will exclude credit unions from complying with the Community Reinvestment Act.
Section 203 of the bill, which will be known as The "Community Reinvestment Reform Act of 2019," would strengthen obligations under the Community Reinvestment Act (CRA) to provide credit to low- and moderate-income communities by extending the law to cover more non-bank mortgage companies, promote investment in activities that help poor and moderate-income communities, and strengthen sanctions against institutions that fail to follow the rules.
Jim Nussle, President and CEO of the Credit Union National Association, wrote that the bill "properly recognizes the distinctions that exist between credit unions and banks when meeting community needs."
An earlier version of this bill introduced in the last Congress would have applied CRA to credit unions that did not have a ,ow-income designation.
Section 204 of the bill will allow a federal credit union regardless of common bond type to add underserved areas. Currently, only multiple common-bond credit unions can add underserved areas. The bill would also add reporting requirements for a federal credit union adding an underserved area and require the National Credit Union Administration to annually publish certain information.
The legislation was introduced in the Senate by Senators Elizabeth Warren (D-MA), Kirsten Gillibrand (D-N.Y.), and Edward Markey (D-MA). In the House of Representatives, the bill sponsors were Representatives Cedric Richmond (D-LA), Barbara Lee (D-CA), Gwen Moore (D-WI), Elijah Cummings (D-MD), Mark Pocan (D-WI), Ayanna Pressley (D-MA), Rashida Tlaib (D-MI), Susan Wild (D-PA), Eleanor Holmes Norton (D-D.C.), Steve Cohen (D-TN), Jamie Raskin (D-MD), Ro Khanna (D-CA), Joe Kennedy III (D-MA), and Suzanne Bonamici (D-OR).
Read the text of the bill.
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