36th Annual Conference on Serving the Underserved & 6th Latino Credit Union Conference
June 9-12, 2010 | Pittsburgh, PA
"Early-Bird" Discounted Registration Open Through April 5!
Top Headlines
CDCUs to Gain Access to “TARP” Capital
(February 3, 2010 – Washington, DC) At a meeting with key leaders of community development credit unions (CDCUs) and community development banks, Treasury Secretary Tim Geithner announced yesterday a major capital investment program for depositories certified as community development financial institutions (CDFIs). The CDCU movement was represented at the private session by Clifford N. Rosenthal, Federation President/CEO, and Luis Pastor, CEO of Latino Community Credit Union (Durham, NC), one of the most prominent CDCUs in the nation.
While final terms and guidelines for the program have not yet been announced, Rosenthal estimated that as much as $200 million could be invested in more than 100 qualifying credit unions serving low-income communities. “This program is a milestone in the history of the CDCU movement,” explained Rosenthal. “The Federation has worked for more than two decades to win support for credit unions that serve low-income communities across the country. The establishment of the CDFI Fund in 1994 was a great victory. This is another.”
The program will be limited to community development credit unions and community development banks certified as community development financial institutions by the Treasury Department’s CDFI Fund. “There are currently more than 150 credit unions certified as CDFIs,” said Rosenthal. “We know that many more CDCUs qualify for this designation, and we will work intensively with our members and other interested credit unions over the coming months to help them become certified.
Since 1994, the U.S. Treasury Department’s CDFI Fund has invested over $1 billion in community development financial institutions nationwide. The Federation drafted the original concept paper used to advocate for creation of the CDFI Fund, and served as co-founder of the CDFI Coalition, which represents the spectrum of community development financial institutions of various types. Federation President/CEO Cliff Rosenthal was the first elected chairman of the CDFI Coalition, where he continues to serve on their Board of Directors.
The Federation is itself a certified CDFI Intermediary with more than $50 million in assets under management through its Community Development Investment Program (CDIP).
To read the full press release, please click here.
To access the Federation's CDFI Fund resources, please click here.
NYC Mayor Bloomberg Highlights Credit Union Role in State of City
(January 20, 2010. New York City) New York City Community Development Credit Unions (CDCUs) were highlighted in the State of New York City speech delivered today by Mayor Michael Bloomberg.
In his speech, Bloomberg referred to five credit unions that will be offering “NYC Safe Start” accounts, which will prevent costly overdraws. “We’re calling them ‘NYC Safe Start’ because they won’t require minimum balances, and they won’t charge hidden fees. If you want overdraft protection or other services, you can opt for a traditional account, but with NYC Safe Start, you can’t withdraw more than you’ve got so you can’t be penalized for forgetting your balance,” the Mayor said.
While the credit unions were not specified, five CDCUs have been longstanding partners in the innovative programs developed by the Office of Financial Empowerment of New York City’s Department of Consumer Affairs. Those are Bethex FCU (Bronx, NY); Lower East Side People’s FCU (Manhattan); Brooklyn Cooperative FCU; Neighborhood Trust FCU (Manhattan); and Union Settlement FCU (Manhattan).
In addition, Mayor Bloomberg cited a recently chartered credit union in Queens, New York, sponsored by the East River Development Alliance, one of only two new federal charters issued in 2009, which will serve thousands of public-housing residents.
Federation Hails CDFI Certification of Five Credit Unions and CUSO
(January 13, 2010 – Washington, DC) The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund announced yesterday that five additional credit unions and a credit union service organization (CUSO) have been certified as CDFIs, bringing the total number of CDFI-certified CDCUs to 165 institutions, representing nearly 20% of all CDFIs. Of the newly certified CDFIs four are members of the National Federation of Community Development Credit Unions (Federation) and nearly all received assistance from the Federation with the CDFI application process.
“The CDFI Fund has become the game in town in terms of growth capital to credit unions,” explained Federation President/CEO Cliff Rosenthal. “CDFI Fund awards allow CDCUs to grow and expand into new communities, as well as to implement high-impact programs that meet the financial needs of underserved communities in a way that builds wealth rather than strips it. Nearly all our member CDCUs qualify for the designation, consequently we have been focusing our efforts to get more of them certified,” he added.
In addition to providing one-on-one consulting, the Federation’s CDFI assistance offerings include access to application templates and a variety of instructional webinars to help CDCUs navigate the Fund’s stringent certification and application procedures.
The newly certified credit unions and CUSO include:
• B.O.N.D. Community Development FCU (Atlanta, GA)
• Bradley Initiative CU (Cleveland, TN)
• El Paso Credit Union Affordable Housing, LLC (El Paso, TX)
• Friendship Community FCU (Clarksdale, MS)
• Monroe Education Employees FCU (Monroeville, AL)
• Valued Members CU (Jackson, MS)
To read the full press release, please click here.
CDCUs Announce Merger to Preserve and Expand Affordable Financial Services in CA’s Central Valley
(January 6, 2010 – Porterville, CA) Two Federation-member CDCUs, El Futuro Credit Union and Self-Help Federal Credit Union, have announced a planned merger to strengthen their capacity to provide affordable financial services to working families and the “unbanked” in California.
The partnership is a proactive step by both credit unions to capitalize on their relative strengths, and move confidently into the future. Both El Futuro Credit Union and Self-Help FCU share a common mission to provide affordable quality financial services to underserved communities, and the merger will result in a wider variety of services and products for El Futuro’s members and will help preserve and expand access to responsible credit for low-income communities throughout the Central Valley.
“This is a great opportunity to partner with another financially strong credit union that shares our vision, enabling us to expand services to other underserved areas and to increase our impact in the community,” said Raul Pickett, CEO of El Futuro Credit Union. “Self-Help Federal Credit Union shares our culture, mission and dedication to best serve our members – all the makings of a great partnership and resource for the Valley.”
Under the merger, El Futuro Credit Union will become part of Self-Help FCU, chartered by the National Credit Union Administration (NCUA) in 2008. El Futuro Credit Union will do business as Community Trust Credit Union (CTCU), a division of Self-Help Federal Credit Union.
To read the full press release, please click here.
