WASHINGTON—NAFCU has joined with Inclusiv on a letter to the Department of Housing and Urban Development (HUD) that makes several requests.
The letter was sent in response to HUD’s draft 2022-2026 strategic plan, and recommends the department create goals specific to assisting financial institutions that specialize in serving low- and moderate-income borrowers with otherwise limited access to personal and business financing.
In addition, the associations requested that HUD offer tailored training and other resources to assist community development financial institutions (CDFIs) and minority depository institutions (MDIs) in becoming Federal Housing Administration (FHA) approved lenders.
Noting CDFIs offer responsible and affordable lending for first time homebuyers and provide flexible underwriting for community facilities, as well as commercial loans for businesses in low-income areas, the two associations stated in the letter that much of what CDFIs do is already in line with HUD's mission of creating "strong, sustainable, inclusive communities."
In addition, the associations urged HUD to support changes to the Federal Credit Union Act that would allow all credit unions to serve underserved areas.
Legislation is Cited
"Serving underserved populations, whether through affordable housing or financial services, is inherently aligned with both the HUD and credit union mission," wrote the associations. "Therefore, all credit unions that wish to add underserved areas to their field of membership should be permitted to do so."
Specifically, NAFCU and Inclusiv noted the Expanding Financial Access for Underserved Communities Act, introduced by Senate Banking Housing, Transportation, and Community Development Subcommittee Chairwoman Tina Smith (D-MN) and Ranking Member Mike Rounds (R-SD) last month.