Support low-income people and communities in building wealth through responsible lending
WASHINGTON—As the Treasury Department announced increased reviews of certified Community Development Financial Institutions (CDFIs) to ensure compliance with applicable laws and CDFI requirements, America’s Credit Unions President/CEO Scott Simpson and Inclusiv President/CEO Cathie Mahon released the following statement:
“Credit unions have proven themselves to be trustworthy partners for people and communities through the CDFI Fund, and the commitment and impact credit unions have through this program are undeniable. CDFI credit unions have deployed hundreds of billions of dollars to support mortgage lending, consumer financing, and small business capital within their local communities, spurring economic growth across the country. We recognize the need for transparency and efficient oversight to protect taxpayers and support responsible lending standards for CDFIs. Indeed, highly regulated, not-for-profit credit unions are leaders in serving low-income people and communities safely and affordably. We urge officials to focus on solutions that target unregulated bad actors without compromising trusted stewards.”
Treasury’s announcement follows the bankruptcy of a certified CDFI subprime auto lender and used car dealer whose executives were charged with conspiracy, bank fraud, and operating a Continuing Financial Crimes Enterprise.
As of Jan. 13, credit unions make up 446 of the 1,383 certified CDFIs nationwide, the largest depository institution type. Every CDFI dollar granted to a credit union generates at least $8 in private investment, including new storefronts, renovated homes, and revitalized Main Streets. CDFI credit unions have active loans totaling $82 billion in community mortgage lending, $86 billion in local consumer financing, $30 billion in lending to local businesses, and $17 billion in affordable small-dollar loans and alternatives to payday loans.
America’s Credit Unions, Inclusiv, and state Leagues are relentless advocates for CDFI credit unions and will continue to emphasize the credit union difference to the White House and Treasury.
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About America’s Credit Unions:
America’s Credit Unions is the unified voice for not-for-profit credit unions, representing more than 95% of the industry’s assets and their more than 146 million members nationwide. America’s Credit Unions provides strong advocacy, resources and services to protect, empower, and advance credit unions and the people and communities they serve. For more information about America’s Credit Unions, visit AmericasCreditUnions.org.
About Inclusiv:
Founded in 1974, Inclusiv empowers its member credit unions to advance financial inclusion through advocacy, education, technology, and impact investment. Inclusiv is a certified CDFI intermediary instrumental in driving private and public investment in credit unions to build wealth for individuals, households, businesses, and communities formerly excluded from the financial mainstream.
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