Credit unions interesting in coordinating with NCUA in the agency’s streamlined Community Development Financial Institution (CDFI) certification applications process will be able to do so from June 4-22 and Sept. 10-28 this year. The agency discussed the process, and what credit unions can do with CDFI certification, during a webinar Wednesday.
Certified CDFIs are eligible to apply for awards through a variety of programs offered by the Treasury’s CDFI Fund. These awards enable CDFIs to finance a wide range of activities--including mortgage lending for first-time homebuyers, flexible underwriting for community facilities and commercial loans for businesses in low-income areas.
As of April 30, credit unions are 283 of 1,079 certified CDFIs nationwide.
To be certified, an organization must:
NCUA entered into a memorandum of agreement with the Treasury in January 2016 to offer a streamlined application process for eligible credit unions. During the June 4-22 and Sept. 10-28 windows, interested credit unions can submit a participation form and submit loan data to NCUA.
NCUA will then perform a series of tests on a credit union’s loan activities and determine if the credit union know if its qualifies for the streamlined application.
The webinar featured testimony from ELGA CU, Burton, Mich., which was one of the first credit unions to successfully get certified through the streamlined process.
ELGA serves a community with a 41% poverty rate and 9.7% unemployment, and 85% of its members are low to extremely-low income. Its CDFI certification allowed it to increase its used auto lending program, as well as create and implement new micro-small business loan products.
The webinar will be closed captioned and added to NCUA’s Credit Union Learning Management Service webpage in the coming weeks.