Case study: Selling affordable housing loans in the secondary market
The California Community Reinvestment Corporation (CCRC) is a nonprofit Community Development Financial Institution (CDFI) formed by a consortium of California commercial banks in 1989 to provide permanent mortgages for affordable housing projects. Historically, CCRC has funded its mortgage program through a credit line provided by its fifty member banks, but it has bumped up against its credit limit as it has increased loan production. One solution to this problem has been selling loans to free up credit-line availability for new loans. CCRC had bad experiences with early efforts to sell loans to federal agencies. But in the late 1990s, it returned to this strategy when it again outran its credit availability. CCRC and the insurance industry’s consortium, Impact Community Capital, partnered on a loan sale that included twelve loans totaling $40 million, which sold at an aggregate price of par.
Volume (Year): (2006)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Phone: (415) 974-2000
Fax: (415) 974-3333
Web page: http://www.frbsf.org/
More information through EDIRC
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:fip:fedfcr:y:2006:p:49-55:n:v.2no.1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Noah Pollaczek)
If references are entirely missing, you can add them using this form.