By Matthew Russell Lee, Patreon Maxwell Book
SOUTH BRONX, March 11 – There is a trend of credit unions buying banks, throughout the United States. But credit unions are not subject to the Community Reinvestment Act, despite being insured by the public - and therefore the effect is to undermine the CRA.
Now in March 2023 Fair Finance Watch with Inner City Press on the FOIA has commented on one:
"Dear Director Gruenberg, Tom Dujenski, Regional Director, Susan Janson & Rick Packard, Dana English, Ms Patton and others in the FDIC: This is a request for a full copy of, and a timely first comment on, the Applications by Alabama ONE Credit Union to buy First Bank, Wadley, AL. This application is listed on the FDIC's website of application subject to CRA comment, with a comment period running through at least March 11, 2023. https://cra.fdic.gov/cram02?inApplNb=20230117&inApplType=MERGER This comment is timely. As an initial matter, this is a request that the FDIC immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been reviewing Alabama ONE Credit Union including its 2021 HMDA data and finds it troubling. In terms of HMDA data, in 2021 in Alabama, Alabama ONE Credit Union made 390 mortgage loans to whites with only 18 denials. Meanwhile to African Americans it made only SIXTY ONE loans, while denying fully 13 applications. A referral should be made to the DOJ for fair lending violations. Public evidentiary hearings are needed, particularly given the trend of less regulated credit union buying FDIC-insured banks."
And in the application to the FDIC, this: "As a credit union, Alabama ONE is not subject to the Community Reinvestment Act." The FDIC has told Fair Finance Watch it is studying the comment, which was sent to Director Gruenberg. Watch this site.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
Feedback: Editorial [at] innercitypress.com
