WASHINGTON — The House Financial Services Committee has scheduled a hearing, The Community Reinvestment Act: Thirty Years of Accomplishments, but Challenges Remain, for Feb. 13.
The hearing will examine the impact of CRA on the provision of loans, investments and services to under-served communities, the Committee said. In addition to exploring CRA's success, the hearing will examine challenges that prevent the law from being more effective.
In advance of the hearing, CUNA CEO Dan Mica released a statement seeking to reassure CUs about the reappearance of the controversial topic.
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"This hearing is being held to mark the 30th anniversary of the passage of the Community Reinvestment Act, and based on our conversations with the Hill is not likely legislative in nature. Chairman Barney Frank (D-Mass.), as early as last summer, has made it clear he intends a review of CRA and that it would be unfair to exclude any financial institutions. However, he has also said that if every financial institution were similar to a credit union, CRA would be unnecessary."
At a recent press conference on the committee's agenda, Frank stated that the results of the Home Mortgage Disclosure Act showed significant disparity between lending to Caucasians and minorities, which he called "unacceptable." The chairman said of the current mortgage crisis, "This subprime thing was exacerbated by the racial disparity."
Frank said last year that he intended to hold hearings on CRA and the one slated for Feb. 13 is the first in a series expected by credit union lobbyists. CUNA Vice President of Legislative Affairs Ryan Donovan said this hearing was commemorative in nature and he has been assured credit unions are not a target of it.
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