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Sen. Warren updates CRA bill to exclude credit unions
Thursday, March 14, 2019 6:25 AM

Sen. Elizabeth Warren (D-Mass.) yesterday introduced an updated version of the American Housing and Economic Mobility Act. Warren had initially planned to expand the Community Reinvestment Act (CRA) to include new requirements for credit unions. Instead, the bill codifies the existing National Credit Union Administration regulations that dictate how credit unions serve underserved communities.  

Credit unions were against the CRA being extended to include them. The issue was a priority talking point for Cornerstone Credit Union League members during this week's legislative visits in Washington, DC.

“This is great news for credit unions and consumers,” said Cornerstone President/CEO Caroline Willard. “We’re pleased Sen. Warren has recognized that credit unions have been fulfilling the parameters of the CRA through their principles and philosophies, their community outreach, and the standards of service they’ve provided members for a hundred years. We extend our sincere thanks.”

Congress has considered whether the CRA should apply to credit unions that have consistently maintained that the determination of such application is not only unnecessary but counterintuitive, given the member-owned structure of credit unions. 

CUNA maintains that credit unions are financial cooperatives that exist solely to provide pooled funds for member-owners and should be treated as the good actors they are. The trade association collaborated with league partners and Sen. Warren to show the many ways that credit unions have been fulfilling requirements to support underserved communities for well over two decades. 

“We're thankful to Senator Warren for recognizing the many ways that credit unions support underserved communities, and for providing a path to codifying the regulations that have guided our movement for over two decades,” said CUNA President/CEO Jim Nussle. “We look forward to collaborating with her and other allies of the credit union movement to solidify the good work that credit unions are doing to uplift communities that are too often ignored and underserved by banks and other financial institutions.”