Planned Legislation Would Extend CRA to Non-Banks

Rep. Eddie Bernice Johnson, D-Texas, plans to introduce legislation to modernize the Community Reinvestment Act, a measure that reportedly would, among other things, extend CRA requirements to large, mainstream credit unions as well as independent mortgage companies, securities firms, insurance companies and all affiliates of holding companies. The bill has already been denounced by Fred Becker, president of the National Association of Federal Credit Unions, as unnecessary. "Credit unions...have a solid history of serving those of lesser income and minority applicants," Mr. Becker said in a statement. But David Berenbaum, executive vice president of the National Community Reinvestment Coalition, said such a "very significant expansion" of CRA to non-banks is long overdue. "We need to reach all of today's players," he said at the Consumer Bankers Association's annual Community Reinvestment Act Conference in Washington. According to Mr. Berenbaum, the bill by the Dallas legislator, a former chair of the Congressional Black Caucus, will require non-banks to meet tests similar to those institutions already covered by the 32-year-old law, but would "account for differences in their products and capacities." Rep. Johnson is scheduled to hold a press conference Friday in conjunction with NCRC's annual legislative conference.