Community Reinvestment Coalition: Subject Credit Unions to CRA Tests

If underserved areas of the U.S. are going to be revitalized, non-banks—including credit unions—should be subject to the Community Reinvestment Act, the National Community Reinvestment Coalition said Thursday. “If one segment of the lending industry complies with CRA while the other segments do not, this ultimately will make lending to underserved communities more difficult,” Josh Silver, a senior policy advisor at the NCRC, said in a policy statement. “The non-CRA covered institutions can skim the most profitable parts of the market and focus their lending on the most affluent borrowers.” The NCRC policy statement is the latest salvo in the

Inclusiv: Big Banks Failing Small Businesses During Pandemic; CDFIs Are Filling Void

The coronavirus economic crisis demonstrated the failure of large banks to reach small and minority-owned businesses, Cathie Mahon, president/CEO of Inclusiv told the Community Development Financial Advisory Board Thursday.

Community Development Financial Institutions stepped up to fill that void as much as they could, Mahon, whose trade group represents community development credit unions, told the board. She added, however, that Minority Depository Institutions and CDFIs were hampered in that effort because they need the capital, technical support, and platforms to keep up with the evolving financial services world.