"As you are aware, the CRA was adopted as a punitive measure to punish bad actors – namely banks – for engaging in discriminatory and abhorrent practices such as redlining and disinvestment," NAFCU President/CEO B. Dan Berger wrote in a letter to the leaders of the House Committee.

Berger said Congress should not add banks to the reinvestment act.

As policymakers struggle with how to update the reinvestment act, the debate once again has pitted credit unions against banks. Banking groups have argued that there is no reason why credit unions are not included in the reinvestment act. Credit unions have responded that by nature, they serve people of limited means.

Congress enacted the reinvestment act in 1977, as part of an effort to encourage banks to meet the credit needs of their communities, including low- and moderate-income communities. Federal banking regulators enforce the law by conducting examinations. In 1995, the law was tailored in an effort to account for different sizes and business models.

The Treasury Department earlier this year issued recommendations on how to update the law; that document did not recommend adding credit unions to the law. However, the Government Accountability Office has suggested that the law be expanded to include non-banks, including credit unions.

And Sen. Elizabeth Warren (D-Mass.) has introduced a housing bill that would do the same.

The American Bankers Association contended it is not fair that credit unions are exempt from the law, and the Independent Community Bankers of America agreed.

"Credit unions that perform 'bank-like' functions and offer comparable products and services are not subject to CRA," the ICBA said in a letter to the OCC. "This uneven playing field places community banks at a competitive disadvantage and inhibits their ability to serve their customers and their communities."

However, Wilson said since 2010, federal credit unions have expanded into underserved areas and given almost 30 million people living in underserved areas access to financial services.

Banks, on the other hand, have closed nearly 9,000 branches since 2010, Wilson said.

"Countless studies, reports and analysis have shown that those bank branch closures have disproportionately impacted traditionally underserved or low- and moderate-income communities," Wilson added.

In his letter to the House committee, Berger said credit unions were not included in the reinvestment act because they have not engaged "in the illegal and discriminatory activities that banks did."

"As many in Congress have wisely noted, if all financial institutions acted like credit unions, there would be no need for the CRA," Berger added.