Table of Contents
Title: Mortgage Notes Opportunities 2023: Transforming the Secondary Marketing Platform for Habitat for Humanity Affiliates
Introduction:
Mark Tribuna, Senior Advisor for CRA Note Exchange at CBC Mortgage Agency, discusses the evolution of the secondary marketing platform and its impact on Habitat for Humanity affiliates. This platform enables the sale of nontraditional notes to banks, providing increased liquidity for affordable housing initiatives.
Background:
CBC Mortgage Agency established the CRA Note Exchange in 2015 as a web-based marketplace for selling second-mortgage notes acquired through down payment assistance activities. The goal was to support Habitat for Humanity affiliates and help financial institutions fulfill their obligations under the Community Reinvestment Act.
Tribuna’s Involvement:
Mark Tribuna became interested in the CRA Note Exchange while working with a Habitat for Humanity affiliate in 2018. Recognizing its potential, Tribuna joined CBC Mortgage Agency and modified the platform to accommodate Habitat affiliates. This allowed them to sell first-lien notes on the homes they built for low-income working families.
Expanded Scope:
Initially focused on second mortgages, the CRA Note Exchange now handles both first and second mortgages. This expansion has opened up opportunities for a larger number of nonprofits and financial institutions to participate in affordable home loan programs, promoting community reinvestment efforts.
Advantages Over Other Platforms:
While there are other mortgage exchange platforms available, the CRA Note Exchange stands out because it assists sellers in getting their loan files in marketable condition. This eliminates a major obstacle for nonprofits that lack the resources to organize their files for sale. CBC Mortgage Agency’s expertise in preparing notes for sale streamlines the process and supports the success of Habitat affiliates.
Success and Impact:
Since the platform’s launch, approximately $31 million in loans have been purchased by financial institutions through the CRA Note Exchange. Habitat for Humanity affiliates, such as the St. Augustine/St. Johns affiliate in Florida, have already sold their first-ever notes using the platform. Tribuna reveals a robust pipeline of nearly $8.5 million in loans posted by Habitat affiliates for potential sale by the end of the year.
Loan Sales and Discounts:
To make the notes profitable for banks, loan sales often occur at discounts of up to 40%. However, the increased access to potential bidders through the CRA Note Exchange results in significantly more liquidity for Habitat affiliates, allowing them to fulfill their mission of providing affordable housing to more individuals and families.
Enhanced Opportunities:
The CRA Note Exchange not only benefits Habitat affiliates but also provides financial institutions with the ability to find and buy notes aligned with their individual Community Reinvestment Act goals. The platform enables targeted searches based on geographical criteria, such as census tracks. By reducing buying and selling costs, the exchange promotes loan affordability and expands access to homeownership.
Conclusion:
Mark Tribuna concludes that working on the CRA Note Exchange is fulfilling work that contributes to increasing affordable housing opportunities and supports community reinvestment. The platform’s success in serving Habitat affiliates and financial institutions demonstrates the power of collaboration between the private and nonprofit sectors to address the housing needs of low- and moderate-income individuals and families.
Contact Information:
- Website: https://www.blackcorerei.com/
- Address: 1341 W. Mockingbird Lane Suite 900W, Dallas, Texas 75247
- Phone: 214.525.6700