Pub. 6 2016-2017 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S September • October 2016 15 Colorado’s Credi t Unions Breach of Privilege What could income tax of $64 million pay for during the a budget year? Colorado has crumbling infrastructure and funds are continually needed for education and healthcare. This tax revenue could go a long way in funding costly roadway repair. * $64 million is the estimated tax big credit unions would pay in Colorado if taxed. Colorado’s credit unions are not focused on low-income borrowers . 92% of credit unions made not a single mortgage loan to Colorado low income individuals. % LOW INCOME % MODERATE INCOME % MIDDLE INCOME % UPPER INCOME 3.3% 17% 41.9% 37.3% CREDIT UNIONS’MORTGAGE LOAN BORROWER INCOME DISTRIBUTION IN COLORADO Large multi-branch, full-service Colorado credit unions are indistinguishable from commercial banks either by the products they provide, or by whom they serve. While some credit unions remain committed to the traditional model of serving a specific class of members (customers), Colorado’s largest credit unions are no longer focusing on employees of a particular business, industry sector, or income level. They neglect to do so despite being statutorily bound to meet the credit and savings needs of individuals of modest means. Serving these separate groups, versus the general public, is why they are tax exempt. But they essentially are available to anybody in the state. Coloradans are being shortchanged. $64M* 92% MONEY LEFT ON THE TABLE MODEST MEANS? With almost no oversight on the millions in tax exemptions that credit unions receive, many publically funded programs are getting shortchanged - like education. Credit unions play by their own rules – and their credit union regulators too often act as their advocates. None of Colorado’s credit unions comply with the Community Reinvestment Act. Repeal their tax exemption and permit conversions from credit union to bank without credit union regulators’ exit approval. View our full report at www.coloradobankers.org . Who provides funding for homes? Not credit unions. Banks are almost 40% more likely to originate home purchase loans to minority borrowers than credit unions according to most recent available data. ACT NOW! 40% BIG MONEY LITTLE REGULATION A HOME FOR EVERYONE? Colorado Bankers Association P 303.825.1575 info@coloradobankers.org   continued from page 7