WASHINGTON (2/1/08)—The Treasury Department’s Community Development Financial Institution (CDFI) Fund is asking for public comment on whether it should change its criteria for certifying organizations as CDFIs. Under current rules, CDFIs must meet seven criteria to be eligible for certification. That certification allows qualified entities to apply for funding through a variety of CDFI Fund programs, and potentially access benefits from other agencies and organizations. The CDFI comment request encourages evaluation of such things as:
* Should the primary mission criteria differ by organization type? If so, how? * Should the CDFI Fund consider the types of financial products offered by an entity as relevant to the primary mission criteria? Specifically, should the CDFI Fund review, as part of the certification process, evidence of the affordability of an entity’s Financial Products to the intended customers? * How else might the CDFI Fund ensure that CDFI certification is not given to entities that engage in what are commonly called “predatory lending practices” or include so-called “predatory lending terms” in their lending products? * Should the CDFI Fund require entities to provide products and services at a cost that is at least comparable to market rates or at some minimum level of affordability to their target markets in order to satisfy the primary mission criteria? If yes, how should market rates or minimum levels of affordability be determined?
For more detail of the CDFI request for public comment, use the resource link below.