ARLINGTON, Va.—The Community Development Financial Institution Fund has been asked by NAFCU to ease reporting requirements for CDFI CUs.
In a comment letter to the Fund, NAFCU Senior Regulatory Affairs Counsel Michael Emancipator stated, "As the Fund reviews its application and reporting requirements, NAFCU urges it to closely consider the difference between regulated and unregulated entities, and the already thorough reporting requirements with which credit unions comply.
"Credit unions are subject to numerous consumer protection provisions in the Federal Credit Union Act, including a usury ceiling, a prohibition on prepayment penalties, and a limit on the amount of loans that can be originated to small business members,” continued Emancipator. “Credit unions are required to cure any deficiencies that might be found. Even when the examiner is not on-site, federally insured credit unions are required to submit Call Report data to NCUA every quarter. As NCUA is in the process of updating the content of the call report, and modernizing the data input mechanisms, NAFCU recommends that the Fund collaborate with NCUA and seek out ways it could leverage data already provided in the Call Report."
Emancipator also noted that CDFI-certified credit unions account for more than half of the assets held by all CDFIs.