Expanding Financial Access for Underserved Communities Act

To amend the Federal Credit Union Act to permit credit unions to serve certain underserved areas, and for other purposes. 1. Short title This Act may be cited as the Expanding Financial Access for Underserved Communities Act 2. Credit union service to underserved areas Section 109 of the Federal Credit Union Act ( 12 U.S.C. 1759 (1) in subsection (c)(2)— (A) by striking the field of membership category of which is described in subsection (b)(2), (B) by amending subparagraph (A) to read as follows: (A) the Board determines that the local community, neighborhood, or rural district is an underserved area; and ; and (C) in subparagraph (B), by inserting not later than 2 years after having such underserved area added to the credit union’s charter, the credit union (2) by adding at the end the following: (h) Change of field of membership to include underserved areas (1) In general If an existing Federal credit union applies to the Board to alter or expand the field of membership of the credit union to serve an underserved area, the credit union shall submit a business and marketing plan with such application that explains the credit union’s ability and intent to serve the population of the underserved area through the change in field of membership. (2) Report by credit union Not later than 2 years after the date on which a Federal credit union’s application described under paragraph (1) is approved, the credit union, as part of the ordinary course of the examination cycle and supervision process, shall submit a report to the Administration that includes— (A) an estimate of the number of members of the credit union who are members by reason of the application; (B) a description of the types of financial services utilized by members of the credit union who are members by reason of the application; and (C) an update of the credit union’s implementation of the business and marketing plan described under paragraph (1). . 3. Member business lending in underserved areas Section 107A(c)(1)(B) of the Federal Credit Union Act ( 12 U.S.C. 1757a(c)(1)(B) (1) in clause (iv), by striking or (2) in clause (v), by striking the period and inserting ; or (3) by adding at the end the following: (vi) that is made to a member or associated borrower that lives in or operates in an underserved area. . 4. Underserved area defined Section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 (1) in paragraph (8), by striking ; and (2) in paragraph (9), by striking the period at the end and inserting ; and (3) by adding at the end the following: (10) The term underserved area (A) an investment area, as defined under section 103(16) of the Community Development Banking and Financial Institutions Act of 1994; (B) groups of contiguous census tracts in which at least 85 percent individually qualify as low-income communities, as defined under section 45D(e) (C) an area that is more than ten miles, as measured from each point along the area’s perimeter, from the nearest branch of a depository institution (as defined under section 3 of the Federal Deposit Insurance Act) or credit union. . 5. Reports by the National Credit Union Administration (a) Initial report Not later than 3 years after the date of enactment of this Act, but no sooner than 2 years after the date of enactment of this Act, the National Credit Union Administration shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the implementation of the amendments made by this Act. (b) Update The National Credit Union Administration shall issue an updated report on the implementation of the amendments made by this Act to the committees described under subsection (a) on the date that is 5 years after the date on which the Administration issues the initial report under subsection (a). June 7, 2022 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Expanding Financial Access for Underserved Communities Act This bill eases credit union membership requirements to allow more access for persons in underserved areas. A credit union must, however, submit a business and marketing plan to the National Credit Union Administration explaining the credit union's ability and intent to serve such population. The bill also excludes loans made to members in underserved areas from certain credit union limits on member business loans.