Credit unions no longer would be able to use a Low-Income Designation as acceptable documentary evidence of a primary mission of community development, under a proposal to be unveiled shortly by the Treasury’s Department CDFI Fund.
Officials released a preview of the new CDFI application and certification process they plan to propose in the coming weeks. The proposed new process will be open for comment for 30 days after it is published in the Federal Register, following which the Treasury Department will then issue a final plan to be implemented in April 2023.
“This review and update is designed to ensure CDFI Certification practices reflect and represent the evolving nature of CDFIs; safeguard government resources; and continue to accurately verify an organization’s commitment to a community development mission,” CDFI Fund officials said.
They added that the changes would set high standards for mission, responsible products and services, accountability, conduct and performance.
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