Status
In recent years, there have been talks to extend these regulations to credit unions.
Our Position
DCUC is opposed to any CRA legislation that would impose the same regulatory compliance burdens on defense credit unions as commercial banks.
Background
The Community Reinvestment Act (CRA) was originally imposed on commercial banks in 1977 due to widespread discriminatory lending practices against minority and lower income communities. For decades, commercial banks engaged in “redlining” loans which was a formal, systematic, and blatant process that blocked credit extension in these communities across the country.
Credit unions were originally exempted from the CRA due to their strong ethos of People Helping People. As member-owned financial institutions focused on their fields of membership, credit unions are community-tied by nature. To this day, unlike commercial banks, there has been little evidence of widespread exclusionary practices within the credit union industry. As such, they should remain exempt from additional compliance burdens.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.
In recent years, there have been talks to extend these regulations to credit unions.
Our Position
DCUC is opposed to any CRA legislation that would impose the same regulatory compliance burdens on defense credit unions as commercial banks.
Background
The Community Reinvestment Act (CRA) was originally imposed on commercial banks in 1977 due to widespread discriminatory lending practices against minority and lower income communities. For decades, commercial banks engaged in “redlining” loans which was a formal, systematic, and blatant process that blocked credit extension in these communities across the country.
Credit unions were originally exempted from the CRA due to their strong ethos of People Helping People. As member-owned financial institutions focused on their fields of membership, credit unions are community-tied by nature. To this day, unlike commercial banks, there has been little evidence of widespread exclusionary practices within the credit union industry. As such, they should remain exempt from additional compliance burdens.
Resources
Handouts of DCUC's current advocacy priorities are available for download. These handouts include information on each advocacy priority and talking points you can use when contacting your state representatives and senators.