Credit union CRA requirement kept out of federal housing bill
Published by: Jared Weiser
August 7, 2024 | Regulatory
Restrictive and unnecessary regulations only detract Ohio credit unions from their primary goal: serving more than 3.2 million Ohioans. That’s why the League opposes applying Community Reinvestment Act (CRA) restrictions on credit unions. CRA was designed to ensure banks were adequately meeting the credit needs of their communities. Credit unions have a long track record of meeting the needs of traditionally underserved communities as part of their mission – without an overly burdensome and unnecessary federal requirement to do so. Last week, U.S. Senator Elizabeth Warren (D-MA) reintroduced her American Housing and Economic Mobility Act without any CRA regulations for credit unions, as was previously rumored. The underlying bill is focused on making homeownership more affordable in the United States and impacts a wide range of tangential industries and sectors to homeownership, including credit unions.
The League still has concerns about some of the regulatory frameworks in the legislation but is committed to working with federal lawmakers throughout the legislative process to promote access to financial services.
