NAFCU voices concerns regarding Treasury’s CDFI Fund application backlog

by NAFCU Newsroom

NAFCU Vice President of Regulatory Affairs Ann Kossachev wrote to the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) Wednesday requesting enhanced transparency and communication on pending applications for credit unions seeking CDFI certification.

“NAFCU and its member credit unions appreciate Treasury’s commitment to the CDFI Fund, which equips financial institutions with greater resources to offer Americans more affordable credit and financial services,” wrote Kossachev. “However, NAFCU is concerned about the current CDFI application backlog and the lack of communication from the CDFI Fund or Treasury to applicants.”

In the letter, Kossachev requested the Treasury Department work to allocate more resources to address the application backlog and streamline the CDFI application process as soon as possible. In addition, she asked that the Treasury Department communicates openly with applicants regarding expected delays and expected approval times throughout the application process.

“[A] failure to be forthright with applicants can result, and is currently resulting, in applicants becoming disillusioned with the application process, and potential applicants becoming hesitant to enter a complicated and costly endeavor with an indefinite end date.”

 

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