WASHINGTON—An initial analysis of the community development financial institution (CDFI) certification application has been published by CUNA.
The review was conducted by CUNA Senior Director of Advocacy and Counsel Elizabeth Sullivan, who said that while it’s early, the application changes appear to be ultimately positive.
“Credit union concerns about being unable to certify or inappropriately excluded appears to have been addressed,” Sullivan reported, adding the new application appears to address numerous issues credit unions had raised in the past, including:
- Broadening the definition of "development services" to better recognize the effectiveness of coaching, online training, youth programs, and other services offered by credit unions
- Altering the Financial Interest Policy to ensure that officers of credit union governing boards who hold loans in the credit union are not excluded from serving as a source of accountability
- A longer timeframe to review and execute the CDFI Certification Agreement
- Some guidance on what overdraft and insufficient funds fees the Fund considers irresponsible
- Defining mortgages in a limited way that preserves a lot of credit union flexibility
- Recognizing that staff and not just executives of mission-driven organizations that serve a target market are appropriate sources of accountability to CDFI credit unions
How to Reapply
As CUToday.info reported earlier, credit unions that are currently CDFI certified have until Dec. 20, 2024, to apply for recertification under the new application. Credit unions not currently certified can apply as soon as AMIS reopens CDFI Certification Application on Dec. 20, 2023.
The Fund will conduct a webinar today at 1:30 p.m. ET to discuss the live application.