FOM modernization markup continues until Wednesday | 2022-05-17
The House Financial Services Committee will continue its tagging of several bills supported by credit unions, including expanding financial access for underserved communities, on Wednesday. The markup entered Tuesday night before breaking for a round of House votes.
The National Cooperative Business Association, of which CUNA is a member, sent a letter of support to HR 7003 on Tuesday.
“The Expanding Financial Access for Underserved Communities Act would address the epidemic of unbanked and underbanked people in the United States by making it easier for consumers to access areas where financial providers financial services do not have enough financial service providers,” the letter said. “As representatives of the co-op movement, we strongly support this legislation, which would make three changes to the Federal Credit Union Act to enable and encourage credit unions to serve underserved and abandoned communities and promote inclusion. financial support for all at no cost to the taxpayer. ”
The changes to the Federal Credit Union Act are as follows:
- Allow all federal credit unions to add underserved areas to their membership scope.
- Exempt business loans made by credit unions in underserved areas from the credit union member business loan limit.
- Expand the definition of an underserved area to include new market tax credit areas and any area more than ten miles from the nearest financial institution branch.
Several other partners in the credit union system have also written to the committee in support of HR 7003.
The African American Credit Union Coalition said the bill would be “essential to addressing the epidemic of unbanked and underbanked Americans by leveraging the success of the credit union model to foster financial well-being and providing access to capital to communities that need it most”.
Inclusiv wrote that the bill “breaks down the barriers” that prevent credit unions from being part of the solution to serving marginalized communities, and the bill is a “significant step forward in building a more inclusive economy”.
The National Association of Credit Unions and Latino Professionals wrote “It’s critical that underserved and traditionally marginalized communities have access to a trusted local financial partner who protects them from payday lenders, meets unforeseen financial needs and offers asset-building opportunities to buy a home, secure reliable transportation, pay for higher education, and start or expand a business.