WASHINGTON—NAFCU has sent letter to the House calling for more federal support for community development financial institutions (CDFIs) and minority deposit institutions (MDI).
In the letter to the House Financial Services Committee, NAFCU’s vice president of legislative affairs, Brad Thaler, wrote, “As the Committee examines approaches to aid CDFIs and MDIs, we believe it is important to properly fund federal support for CDFIs and MDIs. This includes increased funding through the annual appropriations process for both the CDFI Fund and the NCUA’s Community Development Revolving Loan Fund (CDRLF).”
Thaler called on the committee to consider the following to assist CDFI and MDI credit unions:
- Improve and streamline the process for certification as a CDFI
- Allow all credit unions to serve underserved areas
- Implement longer loan maturity limits for consumers
- Allow government-sponsored enterprises (GSEs) to purchase non-conforming loans from CDFIs
- Urge the Federal Housing Administration (FHA) to introduce additional programs that provide insurance for CDFI loans and make it easier to have access to FHA-backed mortgage products
- Simplify the cost of compliance for de novo credit unions
- Support the NCUA in its efforts to permit credit unions to issue subordinated debt
“Taking the steps outline above would go a long way to helping meet the needs of CDFIs and allowing us to meet the challenges that arise,” concluded Thaler.
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