The Trump administration’s push to bar community lenders from using federal funds to support noncitizens or diversity efforts would cause some lenders to refuse the money altogether, a credit union trade group says.
The Treasury Department is developing a rule that would prohibit lenders using money from the Community Development Financial Institutions Fund—which provides federal financial backing to small credit unions, banks, and loan funds—to support services for immigrants who lack the necessary documents.
The department said it’s also adding a provision to CDFI Fund agreements barring recipients from engaging in practices that violate federal anti-discrimination laws. Lenders that don’t ...