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Case study: Selling affordable housing loans in the secondary market


  • Vine, George


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.

Suggested Citation

  • Vine, George, 2006. "Case study: Selling affordable housing loans in the secondary market," Community Development Investment Review, Federal Reserve Bank of San Francisco, issue 1, pages 49-55.
  • Handle: RePEc:fip:fedfcr:y:2006:p:49-55:n:v.2no.1

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    References listed on IDEAS

    1. Mitchel Y. Abolafia (ed.), 2005. "Markets," Books, Edward Elgar Publishing, number 2788.
    2. Bostic Raphael & Paulson Anna L & Mehran Hamid & Saidenberg Marc, 2005. "Regulatory Incentives and Consolidation: The Case of Commercial Bank Mergers and the Community Reinvestment Act," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-27, April.
    3. Timothy Bates & William Bradford & Julia Sass Rubin, 2006. "The Viability of the Minority-Oriented Venture-Capital Industry Under Alternative Financing Arrangements," Economic Development Quarterly, , vol. 20(2), pages 178-191, May.
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    Housing - Finance; Mortgages;


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