WASHINGTON—Continuing to press for answers around what is being done about the backlog of applications for CDFI funds at the Treasury Department, NAFCU has sent a letter requesting enhanced transparency and communication on pending applications for credit unions seeking CDFI certification.
“NAFCU and its member credit unions appreciate Treasury’s commitment to the CDFI Fund, which equips financial institutions with greater resources to offer Americans more affordable credit and financial services,” wrote Vice President of Regulatory Affairs Ann Kossachev. “However, NAFCU is concerned about the current CDFI application backlog and the lack of communication from the CDFI Fund or Treasury to applicants.”
In the letter, Kossachev requested the Treasury Department work to allocate more resources to address the application backlog and streamline the CDFI application process as soon as possible. In addition, she asked that the Treasury Department communicate openly with applicants regarding expected delays and expected approval times throughout the application process.
‘Becoming Disillusioned’
“[A] failure to be forthright with applicants can result, and is currently resulting, in applicants becoming disillusioned with the application process, and potential applicants becoming hesitant to enter a complicated and costly endeavor with an indefinite end date,” she wrote.
In addition, Kossachev asked Treasury and CDFI Fund to increase their support of CDFI mortgage lending programs, including for first time homebuyers, and work with the NCUA to expand resources for CDFIs.