| First Bank
Wanting To Sell to Credit Union Not
Subject to Community Reinvestment Act
Draws Protest
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.
***
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