Effort to Expand Credit Unions’ Certification Becomes a Permanent Program
ALEXANDRIA, Va. (Jan. 23, 2017) – Five federally insured, low-income credit unions have earned certification as community development financial institutions, the National Credit Union Administration announced today.
The five credit unions are:
- Central Sunbelt Federal Credit Union, located in Laurel, Mississippi;
- Chicago Municipal Employees Credit Union, Chicago;
- ELGA Credit Union, Burton, Michigan;
- New Covenant Dominion Federal Credit Union, Bronx, New York; and
- Softite Community Federal Credit Union, Martins Ferry, Ohio.
The five credit unions completed a streamlined certification process developed by NCUA and the Community Development Financial Institutions Fund. NCUA and the CDFI Fund last year agreed to work to increase the number of certified credit unions. NCUA identifies low-income credit unions that may qualify, using data the agency collects through its regulatory process. NCUA then notifies the credit unions of their preliminary qualification.
The credit union must submit loan transaction data to NCUA for confirmation that it has sufficient loans to CDFI-eligible individuals and geographic areas. Credit unions that meet that requirement are permitted to use the streamlined application to apply for certification.
NCUA recently announced that the effort to expand the number of CDFI-certified credit unions will become a permanent program. During the fall, NCUA invited more than 500 low-income credit unions to submit their loan data to determine their qualification for the new application. The five credit unions are the first to complete the certification process.