The Community Development Financial Institutions program has a serious backlog of applications, and the Treasury Department is failing to be forthright about it with credit unions waiting for their applications to be reviewed, Ann C. Kossachev, vice president of regulatory affairs at the National Association of Federally-Insured Credit Unions charged Wednesday.
Senate Financial Services Appropriations Subcommittee Chairman Sen. Chris Van Hollen, D-Md., said Wednesday he is pushing for a $90 million increase in Community Development Financial Institution funding—but witnesses told a Senate Subcommittee much more is needed.
Congress returns to Washington this week, with a huge number of issues—including some directly affecting credit unions—unresolved.
Here’s a guide to some of the issues to watch during the next few weeks.
The House Financial Services Committee on Monday will mark up legislation that would, among other things, provide $10 billion to the Community Development Financial Institutions program to build or preserve more than 170,000 “affordable” homes.
Low-income, federally insured credit unions that wish to be certified as Community Development Financial Institutions may apply for the National Credit Union Administration’s streamlined qualification process between Sept. 12 and Oct. 15, agency officials announced last week.
National Credit Union Administration Chairman Todd Harper says a 36% interest rate cap on consumer loans would have no impact on credit unions. Credit Union trade groups say the cap would force credit union members to take out larger, longer-term loans. The CEO of the Essential Credit Union says that a 36% cap is fine with him. Confused? Who wouldn’t be?
Financial services companies would continue to make loans—and make money on the deals—if Congress decides to place a 36% interest rate cap on short-term loans, Richard Williams, president/CEO of the Essential Credit Union told a Senate committee Wednesday.
The House Financial Services Committee on Wednesday approved legislation which would require federal financial regulators to develop a strategic plan to encourage the chartering of new credit unions and banks. The panel approved H.R 4590 by voice vote. The bill, sponsored by Rep. Jake Auchincloss, D-Mass., would require the regulators to conduct an 18-month study examining the challenges that newly chartered credit unions and banks face. Following that study, the regulators would be required to develop a strategic plan to promote creation of new financial institutions, particularly minority depository institutions and community development financial institutions. In a memo prepared for
A Republican effort to kill a postal banking pilot program contained in the House version of the FY22 Financial Services spending bill failed Monday.
The decision by the House Rules Committee not to allow Republicans to offer that amendment during floor debate of the measure all but guarantees that the $6 million pilot program will be in the House-passed version of the appropriations measure.
Members of a House subcommittee and financial services experts agreed Wednesday that providing financial services to the unbanked should be a high priority for policymakers.
But they did not agree on how to solve the problem.