The new rules strengthen lending standards to provide responsible finance products
DALLAS, Dec. 18, 2023 /PRNewswire/ — Crossroads Impact Corp, a holding company focused on investing in businesses that promote economic vitality and community development, welcomes the U.S. Treasury Department’s new regulations for Community Development Financial Institutions.
The regulations narrow an exemption used by some mortgage lenders who offered no documentation loans as well as declared that CDFIs must consider a borrower’s ability to pay back a loan.
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“We are proud of our decades-long full doc mortgage product and applaud the commitment of the CDFI Fund to provide responsible lending products to minorities and low- to moderate-income communities,” said Eric Donnelly, CEO of Crossroads Impact Corp. Crossroads’ wholly owned subsidiary, Capital Plus Financial, is a CDFI and a certified B Corp.
“Our industry has always been a place of innovation for underserved communities. Creating alternative ways for qualified borrowers to access credit with demonstrated abilities to repay is an encouraging step that our industry is strengthening the standards for lenders, which only protects the consumers and communities we serve,” added Donnelly.
About Crossroads Impact CorpCrossroads Impact Corp’s mission is to promote economic vitality through community development and equitable access to capital; harnessing the power for good to tackle systemic issues within underserved communities. Building on our history of serving minority individuals and small businesses through environmental and responsible social lending, we look to be the leader in providing innovative and sustainable lending solutions.
Media Contact:Andy Boian
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(415) 404-2539
[email protected]
SOURCE Crossroads Impact Corp
