Legislating CDFI Fund Transparency
Credit union calls for greater transparency from the CDFI Fund are being met with bipartisan support. A CUNA-supported bill was put forth by U.S. Representatives John Rose (R-TN) and Brittany Pettersen (D-CO), both members of the House Financial Services Committee, with their introduction of the CDFI Fund Transparency Act. It will require the Community Development Financial Institutions (CDFI) Fund Director to testify annually before the House Financial Services Committee and the Senate Banking Committee.
"CU Strategic Planning has joined system partners in submitting numerous comment letters over the past 15 years as the CDFI Fund has been accorded greater responsibility," said CEO Stacy Augustine. "We support greater transparency and accountability."
The Credit Union National Association also supports the legislation. Their President and CEO, Jim Nussle, said in a letter: “The CDFI Fund must be fair and well-functioning on behalf of underserved persons and communities, and the credit unions that serve them. It is also in everyone’s best interests that oversight in support of this goal does not impede the CDFI Fund in its operation. This bill appropriately strikes that balance.”
The CDFI Fund Transparency Act would, in addition to requiring the CDFI Fund Director to testify annually, requires the Treasury Secretary or their designee to appear at the hearing and provides the House Financial Services Committee with the discretion to convene the hearing at a subcommittee or full committee level.
The full text of the bill is available here.