There have been "great improvements" for credit unions taking advantage of the Community Development Financial Institutions (CDFI) Fund, says Director Donna Gambrell, addressing the 2013 Annual Conference of the National Federation of Community Development Credit Unions.
Fifteen credit unions received $13.7 million in financial assistance and $678,000 in technical assistance from the fund in 2012.
Plus, the fund is seen as a valuable tool by the Obama Administration, which called for a $3 million budget increase to $224.9 million, Gambrell reports. While that budget still needs approval, it is a positive development.
“That is unheard of in these times,” Gambrell says. “Some of my colleagues have called me, asking ‘how did you get a budget increase in this environment?’ I think a lot of it has to do with our ability to tell a good story, not only about the work you all are doing but about the impact that it is having on communities.”
The CDFI Fund allows credit unions in underserved communities to lend more money to those in need, Gambrell says. She points to recent research revealing that for every dollar awarded from the fund, credit unions lend an additional 45 cents after the first year, $1.10 after two years, and $1.60 after three years.
Since its creation, the CDFI Fund has awarded more than $1.7 billion to community development organizations and financial institutions.
Since CUNA’s compliance staff compiled a list of changes in mortgage interest reporting under the IRS’s Form 1098, several questions have arisen. CUNA’s compliance staff has been able to connect with a coalition of consumer mortgage lenders to provide answers.
After months of advocacy by CUNA, the CFPB Thursday wrote to CUNA announcing it will initiate a rulemaking this summer to address issues with the bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures rule.
The Financial Accounting Standards Board voted Wednesday to proceed with its current expected credit loss proposal, which defers the original effective date for one year for entities such as credit unions--a change sought by CUNA in its comments to FASB.