CDFI Fact Sheet
Originally published by The Change Company CDFI LLC
October 31, 2023
What is the status of Change’s Lawsuit Against the U.S. Treasury CDFI Fund?
Change Lending, LLC (“Change”) has reached an Agreement-in-Principle (“Agreement”) that resolves all issues with the United States Department of Treasury’s Community Development Financial Institutions Fund (“CDFI Fund”). Attached here is a letter from the CDFI Fund documenting the Agreement, which includes the following terms.
Change is a certified CDFI in good standing with the CDFI Fund. Change’s next planned certification review is not until 2025.
Change and U.S. Treasury will receive mutual releases and Change will dismiss its lawsuit against the CDFI Fund.
Carlos Salas, Chief Executive Officer of Change Lending, stated, “We are pleased to have resolved any misunderstandings with the CDFI Fund and appreciate the CDFI Fund’s collaborative approach and willingness to agree to this settlement in principle. We believe that today’s agreement will benefit all stakeholders. Change is proud to be certified as a CDFI and to continue our mission.”
Rev. Everett Bell, Jr., Chair of Change’s Community Advisory Board, stated, “The Community Advisory Board is pleased that the U.S. Treasury and Change have an agreement-in-principle that quickly resolves the misunderstanding. Now Change can refocus on the important issue at hand, creating homeownership for underserved individuals and communities across the country.”
Change, who was recently named the Top Non-QM Lender in America by The Scotsman Guide, has maintained its certification as a CDFI since April 2018. Change is a subsidiary of The Change Company which itself is, and remains, a certified CDFI.
Is Change Lending a CDFI?
The Change Company CDFI, LLC and its subsidiary Change Lending, LLC (“Change Lending”) both remain community development financial institutions (CDFI) certified by the United States Department of the Treasury’s CDFI Fund (the “CDFI Fund”). Attached here, are recent communications from the CDFI Fund that document the active CDFI certification status at each entity. Additionally, the spreadsheet with the list of active CDFIs published on the CDFI Fund’s website can be found here and for convenience available for download here.
Do Loans Purchased from Change Lending Retain Their Exemption From the CFPB’s ATR Rule?
All loans originated by Change Lending since it was certified as a CDFI in April 2018 retain their exemption from the CFPB’s ATR Rule even if they are subsequently purchased by a non-CDFI. Change Lending has made public this attached letter to Change Lending from the law firm of Garris Horn, LLP. Garris Horn’s letter confirms “loans made by a lender properly certified as a CDFI at the time of consummation remain exempt from the ATR Rule as CDFI loans for the life of the loan.” The letter continues that these rights “are not altered, nor amended, if a lender later loses its CDFI status…”
Additionally, Change Lending and the CDFI Fund have entered into this attached agreement which clarifies that existing Change Lending cannot retroactively lose its certification causing any existing loan to lose their exemption form the CFPB’s ATR Rule.
Does Change Lending Make Representations Regarding the Race, Ethnicity or Income of its Borrowers in Connection with its Securitizations?
Change Lending does not make representations regarding the race, ethnicity or income of its borrowers in the private placement memoranda or other documents describing its securitizations of mortgage loans. See attached letter from the law firm Denton’s for more information.