The Native CDFI Network (NCN) released the results of its comprehensive survey documenting the likely impacts the CDFI Fund’s proposed changes to the CDFI Certification Application and related regulations will have on Native CDFIs. More than 50 Native CDFI chief executives responded to the survey. Some key highlights:
- Response rate: 51 of the 88 certified and non-certified Native CDFIs responded to the survey.
- Requiring government-issued documentation of Native identity of CDFI clients: More than 80% of respondents oppose this proposed change.
- Prohibiting interest-only mortgage loans, HELOCs, Construction LOCs, mortgage loans with balloon payments, and mortgage loans with terms longer than 30 years: More than 70% of respondents are “gravely concerned” about this proposed change or believe it will prevent their CDFIs from achieving/retaining certification.
- Requiring all CDFIs, including those that have not received a Financial Assistance (FA) grant award, to provide comprehensive financial information in the Annual Certification Report:3% of respondents are “gravely concerned” about this proposed change.
- Overall impact of proposed changes:8% of respondents said their CDFIs “will have to substantially change how it serves its clients to ensure it is approved for Treasury certification,” and 33.3% said their CDFIs “may apply for Treasury certification but under our current operating structure it is likely our application will be rejected.”
- Serving fewer Native people:8% of respondents stated the proposed CDFI Certification changes will results in their Native CDFIs serving fewer Native people.
To view the comprehensive survey results, please click here.
To view NCN’s three comment letters on the proposed changes to CDFI Certification, click here.
“If we remain certified, we will serve fewer clients. If we cannot remain certified, we will lose substantial funding and serve even fewer clients.”
– Native CDFI leader