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NCUA and NAFCU told Congress Thursday that credit unions do an exemplary job of serving the underserved but could do even more if single-common-bond and community-chartered credit unions were able to add underserved areas to their fields of membership.

Testifying before the House Subcommittee on Financial Institutions and Consumer Credit, NCUA Executive Director David Marquis said more credit unions "have the capacity to step up and help," but current law only allows multiple-common-bond credit unions to add underserved areas. "Allowing other types of credit unions to add underserved areas would promote improved access to basic financial services, loan products and wealth building opportunities," he said.

That message was also communicated to the subcommittee in a letter by NAFCU Vice President of Legislative Affairs Brad Thaler. In the letter, which was entered into the record during the hearing, Thaler pointed out that credit unions serving underserved areas have outperformed the average of all credit unions in consumer loan growth for 2010 and the first half of 2011.

As Congress examines how to promote greater access to consumer credit, Thaler wrote, lawmakers should consider actions that would "minimize the regulatory burdens and remove legislative roadblocks that can serve to hinder the ability of credit unions to meet the credit needs of our nation's consumers."

In his testimony, Marquis also urged lawmakers to allow credit unions to provide services in adjacent geographic areas that can be defined as economically distressed based on factors such as poverty and unemployment. He also recommended that Congress release funding for the agency's Community Development Revolving Loan Fund, which currently receives requests for twice as much money as it has available to lend.

Raising the current cap on credit unions' member business lending from 12.25 percent of assets to 27.5 percent, as outlined in H.R. 1418, was also cited by Marquis as a way to help promote greater access to credit, as well as a means to support economic growth and job creation.

Also testifying were senior officials from the FDIC and the Office of the Comptroller of the Currency, as well as banking lobbyists, academics and advocates.