The streamlined application process opens Monday for qualified federally insured, low-income credit unions interested in becoming community development financial institutions, the federal credit union regulator said Friday.
In a release, the National Credit Union Administration (NCUA) said the streamlined process (which runs to April 6) starts with low-income credit unions (LICUs) submitting loan origination data to the agency’s Office of Credit Union Resources and Expansion (OCURE). That data is then analyzed for the products and services offered by each credit union, and other indicators, to determine “likelihood for certification,” the agency said.
“If the credit union is qualified to use the streamlined process, the NCUA will provide an application form and the data necessary to complete it,” the agency said. “The credit union then completes the application and submits it to the CDFI Fund, which makes the final determination on the certification.”
NCUA said credit unions not eligible for the streamlined application can still use its standard form application.
According to the agency, credit unions that obtain CDFI certification can take advantage of training and competitive award programs provided by the CDFI Fund. “These resources enhance credit unions capacity to provide underserved communities with access to safe and affordable financial services,” the agency stated.