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The Community Development Financial Institutions Fund issued a revised CDFI certification application that addresses ICBA concerns with a previously released proposal.
Details: The revised application includes substantial modifications to its Basic Information, Legal Entity, Primary Mission, Financing Entity, Target Market, Development Services, and Accountability sections. All currently certified CDFIs must reapply for CDFI certification using the revised application between Aug. 1 and Dec. 20, 2024.
ICBA-Advocated Changes: Following persistent ICBA advocacy, the CDFI Fund excluded from the application ICBA-opposed provisions that would have rescinded CDFI certification for banks that originate balloon mortgages. ICBA has repeatedly met with members of Congress and Treasury Department officials to reiterate its opposition to these proposed changes, which led lawmakers to urge the CDFI Fund to consider stakeholder concerns.
ICBA Response: In a news release, ICBA said it appreciates that the final certification application incorporates industry-requested changes to the proposal. “However, we remain concerned with provisions that would restrict access to credit for certain populations, especially those in rural areas or in need of small-dollar products,” ICBA President and CEO Rebeca Romero Rainey said.
Delayed Launch: In the wake of ICBA’s opposition detailed in a comment letter and pressure from Congress, the CDFI Fund earlier this year delayed the launch of the changes. The CDFI Fund’s Community Development Advisory Board has also expressed concerns.
Outlook: ICBA will continue working with the CDFI Fund, Treasury, and Congress to ensure any revisions to the CDFI certification application are not detrimental to community banks and the communities they serve.