NCUA Working to Add More than 200 Certified Credit Unions by the End of 2016
SEATTLE (June 27, 2016) – Credit unions certified as Community Development Financial Institutions can do more to serve members and their communities, and National Credit Union Administration Board Chairman Rick Metsger encouraged qualified credit unions to seek certification.
“Credit unions are uniquely positioned to advance the goals of the Community Development Financial Institutions Program,” Metsger said, “and I encourage every qualified credit union to make CDFI certification a priority in the next few months. Increasing the number of credit unions with this certification will allow significant dollars to be put to work helping people of modest means meet their financial needs. This is the core of the credit union mission.”
Metsger spoke at the Credit Union National Association’s annual America’s Credit Union Conference here today.
NCUA earlier this year signed a partnership agreement with the U.S. Treasury Department’s Community Development Financial Institutions Fund to streamline the certification application process for credit unions with the low-income designation. At the beginning of this year, there were 295 federally insured credit unions with CDFI certification, and Metsger said NCUA hopes to add more than 200 to that by the end of the year. There is no charge to apply for certification.
In this streamlined application process, NCUA will analyze a low-income credit union’s products and services and other indicators showing the likelihood it will qualify for certification. The credit union must submit data to NCUA on its loan originations and identify its target market. If the credit union is qualified, NCUA will provide an application form and the data necessary to complete it.
Certification gives credit unions more resources to expand products and services and make investments in their communities, Metsger said.
“Certified credit unions have access to grant funds that can help them assist the underserved, build financial capacity among members and bring new businesses into their communities,” he said. “I would add that the benefits of CDFI certification do not mean NCUA examiners will be visiting more often.”
NCUA’s Office of Small Credit Union Initiatives can help credit unions with questions about the certification process, Metsger said. The agency has an online video series (opens new window) that explains the certification process, and a recent webinar on certification will be available online in about three weeks.