NCUA Phasing Out ‘Streamlined’ Process For Becoming CDFI

ALEXANDRIA, Va.–NCUA said its “streamlined” application process is being phased out for credit unions eligible to become certified as a community development financial institution (CDFI).

Instead, the agency said CDFI applications will be consolidated under one process under the Treasury Department’s Community Development Financial Institutions Fund.

“The NCUA encourages eligible credit unions to explore CDFI certification, which makes them eligible for CDFI Fund training and competitive award programs to enhance their capacity to provide underserved communities with access to insured, affordable financial services,” the agency said in released statement.

According to NCUA, 461 federally insured credit unions are now certified as CDFIs.

Announced in 2021

NCUA announced in August of 2021 its streamlined qualification process for obtaining CDFI application, under which low-income-designated credit unions registered in the NCUA’s CyberGrants system and completed an online participation form. The agency’s Office of Credit Union Resources and Expansion (CURE) then reviewed each credit union’s products, services, and other indicators to determine whether the CU qualified for the streamlined certification application.

NCUA said qualified credit unions were given the information needed to complete and submit the streamlined certification application to the CDFI Fund, which made the final certification decisions.