WASHINGTON — House Financial Services Committee Chairman Barney Frank (D-Mass.) has had a good relationship with credit unions, but that will not shield them from consideration under an expansion of the Community Reinvestment Act.

While the chairman has promised a hearing in his committee on the Credit Union Regulatory Improvements Act (H.R. 1537) this fall (See sidebar, page 34), at NAFCU's Congressional Caucus last week he also alerted credit unions that he planned to hold a hearing in early 2008 to explore expanding CRA, which would cover a variety of financial services entities including credit unions. He acknowledged that the credit unions with more focused fields of membership are already doing what CRA requires, but "Some of the very large credit unions are going to have to show how you're doing that." Frank said what he had envisioned would not create "any new burdens for most credit unions."

Talking with press outside the Caucus room, Frank added, "Credit unions are not a major focus of this or even an important focus." However, he said CRA needs freshening up because currently enforcement only occurs "when there's a merger or sale and that's just not good enough."