NAFCU: Increased funding alone won’t solve CDFI Fund problems

Additional money will not solve the problems with the CDFI program, NAFCU said in an issue brief, released late last week.

“NAFCU would like to stress that additional funding alone cannot and will not solve the structural issues with the certification and recertification process,” the trade group said, adding, “In order to improve the CDFI Fund and its certification process, Congress should begin with updating…the statute that governs the CDFI Fund and its program, to require Treasury and the CDFI Fund to develop and implement a simpler, more modern approach.”

NAFCU has released a series of issue briefs as officials from its member credit unions travel to Washington, D.C. for the group’s annual Congressional Caucus next week. The briefs were prepared so that the officials can raise issues if they meet with lawmakers, their staffs, or regulators.

Background on the Issue

In recent months, credit union trade groups have identified a series of problems with the CDFI program—ranging from the length of time it takes the Treasury Department to review applications to communication issues with department officials.

 

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