Frank to Propose CRA for Credit Unions

WASHINGTON — 9-14-2007- House Financial Services Committee Chairman Barney Frank told a credit union group Tuesday that he would like to extend Community Reinvestment Act requirements to credit unions and other financial companies.

"CRA has eroded … because so many nonbanks are now part of the lending business," the Massachusetts Democrat said. "The biggest problem is that, as what became with the mortgage market, a much smaller percentage of lending is done by traditional financial institutions than what used to be."

During a speech to the National Association of Federal Credit Unions, he said most credit unions already adequately invest in their communities and would just have to "demonstrate or document" it. "The principle that every financial institution has some responsibility to its community is where we start," he said. (CU Times)