CUNA and state credit union association among those pleased with decision to further review proposed updates to CDFI Certification process.
Credit union advocates and key members of Congress are applauding the decision by CDFI Fund officials to take more time to consider changes to the application and certification process—even though it means the fund’s “blackout” period is being extended.
“As we indicated in our letter to Treasury, it is critical that the CDFI Fund provide adequate time to receive and consider comments on the proposed changes to avoid unintended consequences and ensure that its programs reflect the perspectives, and meet the needs of the low-income, underserved and rural communities the fund was created to serve,” Sens. Mark Warner, D-Va., and Mike Crapo, R-Id., said Wednesday.
Warner and Crapo are co-chairs of Community Development Finance Caucus.
Treasury Department officials announced Tuesday that they will take additional time to review possible changes to the CDFI certification and application processes. As a result, the fund will not meet the April 3 deadline for reopening those applications and will announce a new target date soon.
It was further indicated additional changes may be made before a final roadmap for the program is released.
Reaction From Credit Unions
Credit union trade groups were likewise pleased with the decision.
“We thank the CDFI Fund for hearing our concerns that the proposed changes would significantly undermine efforts of CDFIs to meet the needs of low-income and distressed communities,” said CUNA President/CEO Jim Nussle. “We are pleased they are open to making changes to the application in response to the significant feedback the fund received.”
Nussle did however indicate that the trade group remains concerned about the process being used to make the changes. The CDFI Fund did not go through the lengthy regulatory process in proposing updates to the program, but instead used a shortened approach permitted under the Paperwork Reduction Act.
The New York Credit Union Association also said they were happy with the fund’s decision to take additional time to examine possible issues with a new process.