During the past year, CUNA, NAFCU and credit union leaders pushed for a number of changes to the CDFI application process. According to CUNA and NAFCU, the final application reflects credit union requested changes, including:

Providing 30 days for credit unions to execute and return the CDFI Certification Agreement, rather than 10.
Allowing for lenders that offer balloon payment mortgages if it is responsibly designed. 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.
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.

"NAFCU appreciates the CDFI Fund finalizing its application for certification and incorporating several recommendations from CUNA and NAFCU. While credit unions can now finally access a certification application for the critical CDFI Fund to unleash financial resources to communities that face immense economic struggles, we still have significant concerns with several aspects of the application," said NAFCU President/CEO Dan Berger. "There are more than 530 credit unions and cooperatives that are CDFI certified, serving more than 20 million people. NAFCU looks forward to continuing to work with the CDFI Fund and is ready to jump in and help any member credit union to ensure underserved communities can thrive and have financial support available."

Instant Insights /

As CDFI Certification Is Finally Revised, Concerns Remain for CUs

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