Sen. Elizabeth Warren, D-Mass., on Tuesday threw a new twist into efforts to reform the Community Reinvestment Act.

Just as the federal bank regulators try to modernize their CRA policy through reforms authorized under the current law, Warren released a bill that would apply CRA requirements to a broader array of institutions — including credit unions — and make penalties tougher for any violations.

"Obligations under the Community Reinvestment Act ... to provide credit to lower-income and middle-class communities are too weak," according to a summary of the bill, which includes other housing and economic proposals. "The bill extends the law to cover more financial institutions, promotes investment in activities that help poor and middle-class communities, and strengthens sanctions against institutions that fail to follow the rules."