WASHINGTON–Representatives from CUNA will be meeting with the director of the Treasury's Community Development Financial Institutions Fund, Jodie Harris, over the delays some credit unions continue to report in renewing their CDFI certifications.
Elizabeth Sullivan, senior director of advocacy and counsel, said credit unions continue to say they are having problems related to long response times, non-transparent requirements that “seem to have changed over the years,” and technical issues with their CDFI certifications.
The issue is one that has been occurring throughout 2022, with both CUNA and NAFCU raising the issue with Treasury in separate letters sent in January.
In April, Treasury Secretary Janet Yellen, during a hearing before House Financial Services Committee, was questioned by Rep. Al Lawson (D-FL) about the CDFI certification process, citing concerns that currently proposed changes to the CDFI Fund will make it harder for financial institutions, including credit unions, to become certified and gain access to additional capital that Congress has provided.
Lawson additionally requested Yellen and her staff investigate the current backlog for CDFI certifications and determine whether the delays required statutory relief or if there were other methods to address the issue.
Pledge from Treasury Secretary
Yellen pledged to look into both issues.
Sullivan said CUNA will be looking to build on its earlier letter to Treasury during the meeting on Thursday.
She noted the issue is especially pressing since Treasury announced it plans to stop taking CDFI Fund applications on Oct. 1 for six months in order to deal with the backlog issues.
“So. there is a time crunch here so they can maintain the designation and access awards and funds,” said Sullivan.