he said. If paid back in a timely manner in three years, interest on the loan is refunded, he added. “We also use grant funds to partner with local groups such as the Rotary Club of Louisville to provide mortgages to purchase homes in specific areas of the city,” he said. “This type of program helps families purchase a home, which is a critical step to breaking out of poverty and creating a legacy of wealth for the family.” Connex Credit Union started the CDFI certification application process in May 2021 and was certified in February 2022 after several months of delay. “We immediately applied for grants because of the grant application timing and because we had already created loan programs to support some of our communities,” said Frank Mancini, CEO of the Connecticut-based credit union. While waiting to receive a decision on the grant application, his credit union’s board is supporting the funding of these loan programs that were created with the intention of relying on the CDFI support. “We made about $1 million in loans in 2022 and have $2 million in the pipeline for 2023,” he said. The CDFI Fund postponed the new CDFI Certification Application in late 2022 to revise the application based on feedback received, pausing the processing of new applications, said Moore. “We don’t know when the new application will be available, but if some of the proposed changes are made, there will be credit unions that qualified under the previous rules that won’t qualify, and some existing CDFIs will face decertification,” she said. “It is too early to know what the final rule will look like, but CDFI- certified credit unions can take a look at the proposed standards and see if they will require the credit union to change processes, collect additional data or increase documentation so they can think about how those changes could be made if needed.” Although his organization was certified recently, Mancini does not know how a revised application will affect Connex when it files for recertification. “We won’t just look at the final rule, because I always worry about the interpretative guidelines,” he said. “It is frustrating to see how the CDFI Fund, through some of its proposed rules, is trying to duplicate regulatory oversight that credit unions already have from state regulators, federal regulators and auditors.” Mancini added, “Credit unions have a history of doing the right thing for our members and communities. Any changes should help us continue—not limit—that effort.” 16 THE NAFCU JOURNAL May–June 2023 “ Credit unions have a history of doing the right thing for our members and communities. Any changes should help us continue—not limit—that effort. ” FRANK MANCINI, CEO, CONNEX CREDIT UNION
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