Expanding Financial Access for Underserved Communities Act
Bill: H.R.7003 | Sponsor: Rep. Waters, Maxine (D-CA)
Policy area: Finance and Financial Sector

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.

To amend the Federal Credit Union Act to permit credit unions to serve 
           certain underserved areas, and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Financial Access for 
Underserved Communities Act''.

SEC. 2. CREDIT UNION SERVICE TO UNDERSERVED AREAS.

    Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is 
amended--
            (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,'' before ``the credit 
                union''; and
            (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).''.

SEC. 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)) is amended--
            (1) in clause (iv), by striking ``or'' at the end;
            (2) in clause (v), by striking the period and inserting ``; 
        or''; and
            (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.''.

SEC. 4. UNDERSERVED AREA DEFINED.

    Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is 
amended--
            (1) in paragraph (8), by striking ``; and'' and inserting a 
        period;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(10) The term `underserved area' means a geographic area 
        consisting of one or more population census tracts or one or 
        more counties, that encompass or are located within--
                    ``(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) of the 
                Internal Revenue Code of 1986; or
                    ``(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.''.

SEC. 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).
                                                 Union Calendar No. 265

117th CONGRESS

  2d Session

                               H. R. 7003

                          [Report No. 117-351]

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