CDFIs provide responsible alternatives to the high-cost payday loans that keep many lower-income households in a cycle of debt. CDFIs serve markets that mainstream financial institutions are not able to reach.
What are the benefits of being a CDFI?
Benefits of the CDFI Program
- Access to additional training resources.
- Exemption from the NCUA's member business lending cap.
- Membership in a learning community of like-minded credit unions to share ideas.
- Limited exemptions under the CFPB Qualified Mortgage and Ability-to-Pay rules.
Are CDFIs effective?
In some circumstances, particularly those involving financial services, CDFIs are effective advocates because they are accomplished practitioners. For example, Self-Help, a CDFI with a credit union and a loan fund, has led national advocacy leadership against predatory lending.
