CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Nussle: CDFI Fund issues threatening communities in need
Policy & Issues

Nussle: CDFI Fund issues threatening communities in need

September 16, 2022
CDFIFund

Confusion over Community Development Financial Institution (CDFI) certification for credit unions is costing communities in need valuable resources, CUNA President/CEO Jim Nussle wrote in Credit Union Times. CUNA has engaged with the CDFI Fund in recent months over CDFI credit unions receiving blanket cure notices and having their CDFI designation terminated without meaningful information or guidance.

“[M]any CDFI credit unions around the country find themselves having trouble applying to maintain their CDFI status, a disruption in funding that these communities simply can’t afford,” Nussle wrote.  Many have been told they need to “cure” certain “deficiencies,” without being told what those deficiencies are or how they can be cured.

“We first raised this issue with the CDFI Fund in July. It’s now September, and we’re weeks away from a six-month blackout in applications the CDFI Fund will institute from Oct. 1 until April 3,” he added. “After April 3, 2023, credit unions must comply with new application criteria, which have not yet been finalized.”

Nussle notes many credit unions are penalized due to demographics of their board, which demonstrates a “complete lack of understanding of the credit union structure,” due to credit unions’ democratically elected boards.

The CDFI Fund issued guidance Sept. 8, only 17 days before the cutoff deadline.

“Any pause in CDFI funding or termination of a CDFI designation will hurt communities working hard to recover from the pandemic and its economic effects,” Nussle wrote. “This would be a setback these communities can’t afford.

“The Fund must ensure that all CDFI credit unions that are able and willing to recertify are given the time and guidance to permit them to do so,” he added.

 

KEYWORDS CDFI
Credit Union Magazine: Summer 2023

Summer 2023

Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
Digital Edition •  Subscribe

Trending

  • Debt ceiling deal has credit union implications

  • Final week to nominate a 2023 Credit Union Rock Star

  • CUNA to host free webinar on FedNow service strategy June 13

Tweets by CUNA_News

Polls

Do you think ChatGPT will become useful for credit unions?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us