WASHINGTON—The Treasury’s Community Development Financial Institutions (CDFI) Fund’s Community Development Advisory Board (CDAB) met this week, with its CDFI Certification Subcommittee offering several recommendations to the application process echoing credit union concerns and recommendations, according to CUNA.
As CUToday.info has reported, CDFI Fund has paused applications while it finalized a new Certification Application.
CUNA noted the subcommittee highlighted many of the issues raised by both CU trade groups, including:
- The proposed ability to repay rules repay may impair CDFIs’ flexibility in serving their communities, and instead recommended the CDFI Fund allow for narrative explanations
- The development services definition is too narrow and excludes some activities that are critical and cost-effective
- The financial interest policy would prohibit credit union members from accessing loans and remove client representation from boards, and should be reassessed
- The certification requirements should not conflict with laws, such as the Equal Credit Opportunity Act, or prudential regulators’ policies and expectations
‘Meaningful and Reflective’
CDAB members supported the CDFI Fund’s efforts to ensure that the CDFI designation remains “meaningful and reflective” of the Fund’s mission, CUNA added.
“Several CDAB members also shared concerns that the proposed changes—as written—would have unintended consequences, such as negative impacts on Native and rural CDFIs, and that the lack of flexibility could create barriers to innovation to serve the underserved,” CUNA said.
It’s Called Fresh for a Reason. And We Offer Home Delivery. For Free!
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com