28. What if an Applicant attests that it does not originate, purchase interests in, offer, arrange, market, or service any consumer or small business loan products that allow for an APR in excess of 36%, but later determines that one of its consumer loan

FAQ Question
28. What if an Applicant attests that it does not originate, purchase interests in, offer, arrange, market, or service any consumer or small business loan products that allow for an APR in excess of 36%, but later determines that one of its consumer loan products did include loans with an APR in excess of 36%?
FAQ Answer

If a Certified CDFI that has attested it does not offer consumer or small business loans that allow for an APR in excess of 36% later determines that a transaction’s APR exceeds 36%. it must inform the CDFI Fund of the misreported information through an AMIS Service Request. The CDFI may remain eligible for CDFI Certification without having to meet the additional conditions for consumer loans above 36% provided:

  • the CDFI, within 210 days after consummation, makes any necessary rate correction and
  • pays to the consumer the dollar amount by which the transaction's total points and fees and/or interest payments caused the transaction to exceed a 36% APR.

If the CDFI does not make this correction, the CDFI Fund will terminate its Certification.