Fannie Backs New CDFI Rating System

Fannie Mae and the National Community Capital Association have entered into an agreement whereby Fannie will serve as a founding subscriber to a new rating system for Community Development Financial Institutions.The CDFI Assessment and Rating System was designed by the NCCA to provide community impact and financial performance scores to investors. Under the agreement, the NCCA will provide consulting to assist Fannie in underwriting CDFI transactions, monitoring investments, and servicing its CDFI assets. Ultimately, NCCA president and chief executive Mark Pinsky argued, CARS will benefit distressed communities by making it less expensive and time consuming for interested parties to invest in CDFIs whose performance is monitored through CARS. "Fannie Mae and the other 12 founding subscribers are helping the CDFI industry take a giant leap forward," Mr. Pinsky said.