Community Development Financial Institutions
CDFIs serve an integral role in helping certain low-income and minority populations obtain adequate access to credit. To become a certified CDFI, lenders must meet an extensive list of requirements to become eligible for certification and submit an application to the CDFI Fund, an office within the U.S. Treasury Department. Once a certification is obtained, a CDFI must continuously meet eligibility requirements year after year. Given the unique aspects of many CDFI borrowers and the types of special purpose credit programs engaged in by CDFIs, the CFPB has exempted CDFIs from certain regulatory requirements such as the CFPB’s Ability to Repay Rule. The CDFI eligibility requirements can be difficult for many lenders to attain and they help to prevent abuse of such regulatory exemptions. SeldenLindeke attorneys have deep experience in assisting lenders with establishing the controls and oversight necessary for CDFI eligibility requirements and certification.
