U.S. Treasury Confirms Change Lending is a Certified CDFI in Good Standing
- Change and the U.S. Treasury Department entered into a global settlement agreement confirming Change is a certified CDFI in good standing with Treasury’s CDFI Fund.
- Treasury has deemed Change compliant with its CDFI lending obligations for 2023.
- Change to continue to be an equal opportunity lender with a focus on providing home loans to CDFI Target Market borrowers.
- Change announces plans to launch new, innovative loan products to expand its industry leading Non-QM platform serving underserved homeowners.
November 15, 2023. Anaheim, CA. Change Lending, LLC (“Change”) announced today that it has entered into a global settlement agreement with the United States Department of Treasury, Community Development Financial Institutions Fund (“Treasury”) that resolves its claims relating to Change Lending, LLC v. United States Department of the Treasury, Community Development Financial Institutions Fund. The settlement confirms that Change is and remains a certified CDFI in good standing with the Treasury and provides Change a release from future claims relating to the dispute.
Carlos Salas, Chief Executive Officer of Change Lending, stated “Change is proud to continue our mission of lending to all Americans, including Black, Latino, and low-income homeowners and those who live in low-income communities. We appreciate the commitment of our strategic partners who make our mission possible and demonstrated unwavering support during this uncertain period. We now look forward to expanding our impact and our reach serving underserved borrowers and communities by expanding our innovative product offerings in the coming weeks.”
Change and the Treasury notified Judge James V. Selna of the United States District Court, Central District of California on November 15, 2023 that they have entered into a global settlement agreement.
As part of the settlement, Treasury has agreed to deem Change compliant with its lending obligations for Change’s Annual Certification and Data Collection Report (ACR) related to fiscal year 2023. Change will not be required to reapply for certification until 2025 and will remain a certified CDFI until the CDFI Fund’s determination relating to the 2025 application. Additionally, the CDFI Fund has agreed that if it encounters any issues related to the 2025 application, the CDFI Fund will first engage in a good faith meet and confer process with Change to seek an amicable resolution of the issues before any action is taken.
The settlement contains mutual releases and an acknowledgement that neither party has admitted fault, error, or liability. As of the date of the settlement agreement, the Treasury confirmed that it is not aware of findings or recommendations pursuant to which the CDFI Fund could take action against Change.
Additional Documents: Court Filing
About Change Lending
Change Lending seeks to expand homeownership by providing credit-worthy loans to prime, underbanked borrowers. Change was named the America’s largest Non-QM lender by Scotsman Guide in 2023 and is licensed to lend in 48 states. Since becoming a CDFI, over 70% of Change Lending’s loans have been to Black, Latino, and low-and moderate-income borrowers and communities. Visit us at www.ChangeMtg.com and www.ChangeWholesale.com.