Community Development Financial Institution-certified credit unions are key to achieving the mission of the CDFI movement, CUNA wrote to the Senate Banking, Housing, and Urban Affairs Committee Tuesday. The committee conducted a hearing on how CDFIs promote housing and economic opportunities.
“[CDFI credit unions] work every day to expand economic opportunity for people and communities who have been excluded from the mainstream financial system,” the letter reads. “The 518 credit unions and cooperativas that are currently CDFI certified serve more than 19 million people through more than 3,100 branches, and CDFI credit unions lent more than $280 billion in their communities last year.
“They effectively leverage CDFI resources, lending $12 in their communities for every dollar in award funding. CDFI-certified credit unions account for 61.6% of all loan products, including residential mortgages, offered by CDFIs,” it adds.
CUNA also highlighted issues with CDFI-certified credit unions seeking to recertify, and the wait for Treasury to issue updated application requirements.
continue reading »