90 years (and counting) of credit union service

The Federal Credit Union Act was signed 90 years ago this week, a milestone that marks generations of service to members, families, and businesses. Congress granted credit unions powers and a mission to provide access to credit, and credit unions continue to fulfill this mission today.

A recent report from the Philadelphia Federal Reserve highlights how credit unions meet this mission in an important way when it comes to banking deserts. Census tracts without a financial institution branch rose 6% since 2019, while bank branch closures doubled at the same time.

Banks with $10 billion or more in assets created nearly two-thirds (62%) of new banking deserts through branch closures.

Credit unions were able to “cure” these deserts in 36% of all instances by opening a branch in a tract where there hadn’t been one before.?

This is just the latest data showing that credit unions continue to step in to serve those that for-profit banks leave behind, and we will continue to highlight these statistics to show the true power of the credit union difference.

America’s Credit Unions Deputy Chief Economist Curt Long examines the Philadelphia Fed data—along with another report on credit union service to those living paycheck to paycheck—in our latest Economic Update video.

Watch the video here.

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SCOTUS overturns Chevron doctrine

The U.S. Supreme Court Friday overturned the Chevron doctrine, which required courts to defer to administrative agencies’ interpretations of ambiguous acts of Congress. This decision has immense implications for credit unions, particularly in terms of rulemaking from agencies like the NCUA and CFPB. It means rules could be easier to overturn, but that the rulemaking process itself will move more slowly. Credit unions will ultimately see some good and some bad with the decision.

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Senate bill would fund CFPB through appropriations

We wrote in support of a bill from Sen. Bill Hagerty, R-Tenn., that would fund the CFPB through the appropriations process. Questions remain about the current constitutionality of the bureau’s current funding structure, and the broad extent of the CFPB’s power means consumers and financial institutions deserve stability. This bill would provide important legal certainty.

Read about the bill here.

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CFPB extends compliance dates of small business lending rule

The CFPB issued an interim final rule this week delaying compliance dates for its small business data lending rule under section 1071 of Dodd-Frank. This is the result of a district court staying the rule, and America’s Credit Unions, Cornerstone League, Rally Credit Union, and others filed a motion as part of ongoing litigation in favor of setting the rule aside. The interim final rule extends compliance dates by 290 days.

Read details on the delay here.

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Relentless advocacy to protect, advance, and empower credit unions:

• We wrote to Rep. Emanuel Cleaver, D-Mo., explaining why Community Reinvestment Act requirements for credit unions would result in costly burdens with no benefits.
• We wrote in opposition to the American Privacy Rights Act prior to its scheduled markup by the House Energy and Commerce Committees. The markup was ultimately cancelled.
• We offered several recommendations to improve clarity in NCUA’s records preservation requirements.
• Credit union-supported candidates saw success in Tuesday’s elections in Colorado, New York, Utah, and South Carolina.