Measure requires CDFI Director congressional testimony

U.S. Reps. John Rose (R-TN) and Brittany Pettersen (D-CO) have introduced legislation requiring the Community Development Financial Institutions (CDFI) Fund Director to testify before House of Representatives and Senate panels, annually.

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CDFI Fund Transparency Act proponents indicated the bill seeks CDFI Director testimony before the House Financial Services Committee and the Senate Banking Committee.

“As the late author Stephen R. Covey wrote, ‘accountability breeds response-ability’,” Rose said. “The accountability established through regular hearings will allow Congress to more ably respond to issues involving the CDFI Fund.”

The Credit Union National Association (CUNA) and the National Association of Federally-Insured Credit Unions (NAFCU) have offered support for the measure.

“The CDFI Fund plays a critical role in ensuring that access to credit and capital is available to all communities, particularly minority and economically-distressed communities,” Pettersen said. “This legislation will ensure the CDFI Fund is accountable to Congress and the communities it serves.”

CUNA President and CEO Jim Nussle noted that 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,” Nussle said. “This bill appropriately strikes that balance.”

According to the NAFCU, NAFCU Vice President of Legislative Affairs Brad Thaler previously wrote to Rose and Pettersen to express support for the bill, citing it would “help enable Congress to ensure the Fund is carrying out its intended mission to help low-income and underserved communities.”